Municipals mixed in thin summer trading; Colorado prices $600 million; deal pipeline fills

By Cristal Cody

Tupelo, Miss., July 16 – Municipal bonds were mixed on Thursday in light trading, sources said.

“It’s really quiet,” one trader said. “The final read is a couple of basis points drop in the short end and down a couple of basis points in 10s through 45. I don’t know if it’s a combination of summer vacations, the British Open this morning or the heat, but it’s just quiet out there right now.”

A few municipal bond issuers priced deals competitively over the session, sources said.

Colorado sold $600 million of series 2015 general fund tax and revenue anticipation notes due June 28, 2016 (MIG1/SP-1+/) via a competitive sale, according to a market source.

True interest costs ranged from 0.2759% to 0.2812%.

Coupons ranged from 1.5% to 2%, and yields ranged from 0.275% to 0.3%.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays and Citigroup Global Markets Inc. were awarded pieces of the deal.

George K. Baum & Co. was the financial adviser.

Proceeds will be used to alleviate general fund cash shortfalls in the coming fiscal year.

Dasny offers $1.17 billion

Looking ahead in primary action, the Dormitory Authority of the State of New York plans to price $1,167,875,000 of state sales tax revenue bonds, according to a preliminary official statement.

The series 2015A bonds (/AAA/AA+) have serial maturities from 2016 through 2025.

Morgan Stanley, RBC Capital Markets LLC and Siebert Brandford Shank & Co., LLC are the bookrunners for the negotiated offering.

Proceeds will be used to refund certain outstanding state-supported debt.

MTA preps three-part deal

Also coming up, the Metropolitan Transportation Authority of New York plans to price $500 million of series 2015C transportation revenue refunding bonds (A1/AA-/A) in three tranches, according to a preliminary official statement.

The deal includes $400 million of subseries 2015C-1 fixed-rate bonds, $50 million of subseries 2015C-2 mandatory tender bonds and $50 million of subseries 2015C-3 floating-rate tender notes.

Siebert Brandford Shank and Morgan Stanley are the bookrunners for the negotiated sale.

Proceeds will be used to refinance certain outstanding debt issued for transit and commuter projects.

Hayward USD preps G.O. bonds

Hayward Unified School District of California’s Alameda County is in the pipeline with a $213.96 million two-part offering of general election of 2014 series 2015 bonds (A3/A+/), according to a preliminary official statement.

The deal includes $95 million of general obligation bonds and $118.96 million of G.O. refunding bonds.

Citigroup and Mesirow Financial, Inc. are the managers for the negotiated offering.

Proceeds will be used to finance school facility improvements and to refund the series 2008 bonds that mature Aug. 1, 2021 through Aug. 1, 2033 and the series 2010A bonds due Aug. 1, 2035 through Aug. 1, 2040.

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