Municipals steady ahead of $7.5 billion new issue action; Natgasoline’s $1.4 billion deal set

By Sheri Kasprzak

New York, Oct. 30 – Municipals ignored a positive move for Treasuries and held steady to close the week, market insiders said.

Yields on AAA-rated 10-year munis remained at 2.10%, and 30-year yields held at 3.13%.

Meanwhile, the market is anticipating a significant increase in new-issue action with about $7.5 billion of new offerings for the week ahead.

This follows a subdued week for supply. The week just ended saw less than $5 billion price after a few big offering were pulled from the calendar.

Natgasoline deal ahead

In fact, one of the offerings pulled and postponed is a $1.4 billion deal from the Mission Economic Development Authority of California.

The authority is now slated to price the revenue bonds for Natgasoline during the week of Nov. 2. The bonds will be sold through BofA Merrill Lynch.

The offering includes $1,159,860,000 of series 2015A taxable senior lien revenue bonds and $240.14 million of series 2015B tax-exempt junior lien bonds.

Proceeds will fund the construction, equipment and installation of a methanol production facility in Beaumont, Texas, for Natgasoline.

BP bonds coming up

The Natgasoline deal isn’t the only oil-related offering in the pipeline for the week.

The City of Whiting, Ind., is poised to price $144.45 million of environmental facilities revenue bonds for BP Products North America Inc.

The bond are due Nov. 1, 2045.

Proceeds will finance a sewage control project at the corporation’s Whiting plant.

Massachusetts bonds set

Also coming up, the Commonwealth of Massachusetts is set to price $450 million of transportation fund rail enhancement bonds (Aaa/AAA/) on Thursday.

The bonds are due 2017 to 2035 and will be offered through Citigroup Global Markets Inc. and BofA Merrill Lynch.

Proceeds will be used to finance rail projects for the commonwealth.

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