Municipals seen better on the long end; District of Columbia brings $501 million revenue bonds

By Sheri Kasprzak

New York, Dec. 9 - Municipals once again firmed, and once again, most of the improvement was seen on the long end of the yield curve.

"The long end is getting a lot of attention," one trader noted.

"Most of the improvement is out on the long end. Yields are down by about 2 or 3 basis points. The rest of the curve is mostly flat."

Meanwhile, some major offerings hit the primary portion of the market, led by a $501 million sale from the District of Columbia.

The city priced $501 million in series 2009E income tax secured revenue bonds, said a sellside source close to the deal.

The bonds (Aa2/AAA/AA) were sold through J.P. Morgan Securities Inc. and Loop Capital Markets LLC.

The bonds are due 2018 to 2024 with term bonds due 2029 and 2034. The coupons for the serial bonds range from 4.343% to 5.093%, all priced at par. The 2029 bonds were not reoffered. The 2034 bonds have a 5.591% coupon, priced at par.

Proceeds will be used to fund capital projects.

New York City sells $900 million

Elsewhere, the City of New York sold $900 million in series 2009 fixed-rate tax-exempt refunding bonds late Tuesday, said a sellside source familiar with the deal. The offering was upsized from $700 million.

The bonds (Aa3/AA/AA-) were sold through Citigroup Global Markets Inc.

The deal included $838 million in series 2009E bonds and $62 million in series 2009F bonds.

The 2009E bonds are due 2010 to 2028 with 3% to 5% yields. The 2009F bonds are due 2012 to 2017. The yields on the 2009F bonds range from 2% to 5%.

The bonds were priced after a three-day retail order period.

Proceeds will be used to refund existing debt.

New York to price $620 million

Looking to Thursday's pricing action, New York is also expected to price $620 million in series 2009 taxable Build America Bonds through JPMorgan.

Proceeds from the offering will be used to fund the city's capital expenditures.

Maryland Transportation deal ahead

Elsewhere on Thursday, the Maryland Transportation Authority is set to price $551.145 million in series 2009 transportation facilities projects revenue bonds (Aa3/AA-/AA-) through Goldman, Sachs & Co. and Merrill Lynch & Co.

The sale includes $69.335 million in series 2009A tax-exempt bonds and $481.81 million in series 2009B Build America Bonds.

The 2009A bonds are due 2017 to 2022, and the 2009B bonds are due 2033 and 2043.

Proceeds will be used to fund a variety of transportation improvements.

Connecticut plans $450 million

Moving to deals out on the horizon, the State of Connecticut is set to price $450 million in series 2009B taxable general obligation bonds, said a preliminary official statement.

The bonds will be sold on a negotiated basis with Morgan Stanley & Co. Inc. as the senior manager.

The bonds are due 2020 to 2029.

Proceeds will be used to fund general capital needs.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.