Utility Debt, N.Y., readies $1 billion sale for holiday-shortened week; muni yields steady

By Sheri Kasprzak

New York, Oct. 9 – The market may be shutting down Monday for the Columbus Day holiday, but that doesn’t mean there won’t be at least a couple of sizable deals in the pipeline.

Thursday will feature the Utility Debt Securitization Authority of New York’s $1 billion of series 2015 restructuring bonds, said a preliminary official statement

The bonds will be sold on a negotiated basis with BofA Merrill Lynch, Citigroup Global Markets Inc., Barclays and RBC Capital Markets LLC as the joint bookrunners.

The authority plans to use the proceeds to purchase, redeem and repay existing debt.

Yields end flat

In the broader market Friday, yields remained mostly flat with softness seen in some maturities, traders reported.

The 10-year bond yield remained at around 2.09%.

New-issue supply in the week ahead will drop significantly to $6.6 billion from this week’s $10 billion pace, market insiders said.

In other muni news, investors are showing an interest in munis again with $714 million of inflows to municipal mutual funds reported for the week ending Oct. 7, according to Lipper Inc., the strongest showing since the beginning of the year.

Dasny preps deal

Even though supply will be at holiday levels, the Dormitory Authority of the State of New York will come to market Tuesday with a competitive offering.

The $951,245,000 state sales tax revenue bonds (/AAA/AA+) will be offered to finance or reimburse a portion of the costs of state programs and projects.

Texas Public sets sale

Another big deal comes from the Texas Public Finance Authority, which is on tap to bring $441,865,000 of series 2015C taxable general obligation and refunding bonds (Aaa/AAA/AAA).

Piper Jaffray & Co. and Goldman Sachs & Co. are the senior managers.

The bonds are due 2016 to 2035, and proceeds will be used to finance grants for cancer research and prevention by the Cancer Prevention and Research Institute of Texas and to refund commercial paper.

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