Municipals up with Treasuries as market braces for $7.7 billion of deals; Atlanta transit prices

By Sheri Kasprzak

New York, May 14 - Municipals ended a relatively slow session Monday on a firmer note, buoyed in part by better Treasuries, said traders.

"We're a touch firmer, following along with Treasuries," said one trader.

"It's been quiet for the most part. A slow day [for secondary]."

Meanwhile, the market could see as much as $7.7 billion in new issues, compared to $3 billion of new offerings that came to market last week, said Tom Kozlik, municipal credit analyst with Janney Montgomery Scott LLC.

Marta brings bonds

Heading up the light primary activity Monday, the Metropolitan Atlanta Rapid Transit Authority of Georgia sold $329,005,000 of series 2012 sales tax revenue bonds, according to a pricing sheet.

The deal included $311,075,000 of series 2012A refunding bonds and $17.93 million of series 2012B refunding bonds.

The bonds (Aa3/AA+/) were sold competitively. J.P. Morgan Securities LLC won the bid for the series 2012A bonds and Guggenheim Partners LLC won the bid for the 2012B bonds.

The 2012A bonds are due 2021 to 2036 with a term bond due in 2040. The serial coupons range from 4% to 5%. The 2040 bonds have a 4% coupon priced at par.

The 2012B bonds are due 2015 to 2020 with 4% to 5% coupons.

Proceeds will be used to refund all of the authority's series 2007C-1, 2007C-2 and 2007D-1 commercial paper notes.

The authority last came to market with debt in September 2009, when it priced $250 million of series 2009A third indenture bonds, which are due in 2034, 2036 and 2039. The 2034 bonds had a 4.25% coupon priced at 98.487 and the 2036 bonds had a 5.25% coupon priced at 108.75. the 2039 bonds have a 5% coupon priced at 105.775.

New York environmental bonds set

Looking to Tuesday's action, the New York State Environmental Facilities Corp. is expected to bring the largest offering of the week - a $497.49 million sale of series 2012A clean and drinking water revolving fund revenue bonds (Aaa/AAA/AA+).

The bonds will be sold through senior managers Morgan Stanley & Co. LLC and Ramirez & Co. Inc.

Proceeds from the bonds, which are due 2013 to 2029, will be used to refund existing debt issued to finance drinking and clean water initiatives.

© 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.