Municipals primary action remains strong; Michigan to bring $468.14 million in G.O. bonds Thursday

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, March 30 - Even though the coming week's primary market won't bring nearly as much monetarily, issuers will bring several billion dollars in bonds to the table, including a $468.14 million general obligation sale from the state of Michigan.

The secondary market remained mostly unchanged but firmed a bit on the long end, said a trader reached Monday afternoon.

Back to the Michigan deal, Merrill Lynch & Co. Inc. and Goldman, Sachs & Co. will bring the bonds to market Thursday.

The sale includes $182.565 million in 2009A G.O. school loan and refunding current interest bonds, which are due 2015 to 2020; $186.979 million in series 2009B G.O. school loan and refunding capital appreciation bonds, which are due 2010 to 2030; $65.02 million in series 2009A G.O. current interest bonds, which are due 2021 to 2025; and $33.575 million in series 2009B G.O. current interest bonds due 2011.

Proceeds will be used to make loans to school districts and refund existing bonds.

Energy Northwest powers sale

Another large offering coming up this week comes from Energy Northwest in Washington State. The utility plans to bring $376.1 million in series 2009 revenue refunding bonds (Aaa/AA/AA) Tuesday, according to a calendar of upcoming sales.

The offering includes $47.985 million in series 2009A project 1 electric revenue refunding bonds; $116.685 million in series 2009A Columbia Generating Station electric revenue refunding bonds; $119.48 million in series 2009A project 3 electric revenue refunding bonds; $1.45 million in series 2009B taxable project 1 electric revenue refunding bonds; $20.515 million in series 2009B Columbia Generating Station electric revenue refunding bonds; $1.305 million in series 2009B project 3 electric revenue refunding bonds; and $68.68 million in series 2009C Columbia Generating Station electric revenue refunding bonds.

Citigroup Global Markets Inc. and Goldman Sachs are the senior managers in the negotiated deal.

The 2009A project 1 bonds are due 2014 to 2015, the 2009A Columbia Generating bonds are due 2014 to 2018; and the 2009A project 3 bonds are due 2014 to 2018. The 2009B project 1 bonds are due 2014; the 2009B Columbia Generating bonds are due 2014, 2023 and 2024; and the 2009B project 3 bonds are due 2014. The 2009C bonds are due 2020 to 2024.

Proceeds will be used for maintenance costs for project 1, Columbia Generating Station and project 3 programs.

N.J. educational authority deal

Also ahead on Tuesday, the New Jersey Educational Facilities Authority plans to price $253.075 million in series 2009B revenue refunding bonds Tuesday, according to a calendar of upcoming deals.

The bonds will be sold through lead managers Morgan Stanley & Co. Inc. and Citigroup. The co-managers are Banc of America Securities LLC, PNC Capital Markets LLC, Powell Capital Markets Inc., Ramirez & Co. Inc., RBC Capital Markets Corp. and Roosevelt & Cross Inc.

The bonds are due 2012 to 2018 with term bonds due 2023, 2028 and 2032.

Proceeds will be used to refund the authority's series 1995, 1999, 2001A and 2002B bonds.

UConn's $150 million G.O.s

Elsewhere on Tuesday, the University of Connecticut is expected to sell $150 million in series 2009A G.O. bonds, according to a sales calendar.

The bonds will be sold through lead manager J.P. Morgan Securities Inc.

The bonds are due 2010 to 2029.

Proceeds will be used for capital expenses.

Also this week, the Municipal Electric Authority of Georgia is set to sell $180 million in series 2009 subordinated bonds Wednesday, according to a sales calendar.

The sale includes $134.095 million in series 2009A taxable project one subordinated bonds and $45.405 million in series 2009B taxable general resolution projects subordinated bonds.

Wachovia Bank is the lead manager.

Proceeds will be used to refund outstanding bonds.

Land of Lincoln looks for $153.43 million

The Illinois Finance Authority plans to issue $153.43 million in series 2008A revenue bonds on Tuesday on behalf of the Advocate Health Care Network, according to a calendar of upcoming sales.

The authority will price $51.14 million in series 2008A-1 bonds.

The issue also includes series 2008A-2 and 2008A-3 bonds, each at $51.145 million.

Citigroup will act as the lead underwriter for the negotiated bonds.

Proceeds will be used to refund outstanding debt.

The Illinois Finance Authority is located in Chicago.

Hoosiers shoot for $203 million

Next door, the Indiana Municipal Power Agency announced plans to issue $203 million in power supply system revenue bonds, according to a preliminary offering statement.

The agency will issue $178 million in series B bonds and $25 million in taxable series C bonds.

The series B bonds will price with terms bonds due in 2034 and 2039 as well as serial bonds with maturities from 2025 to 2028.

The series C bonds will price as one term bond due in 2025.

Citigroup will act as the lead underwriter for the negotiated bonds.

Proceeds from the sale will be used to finance construction projects and build a reserve fund.

The Indiana Municipal Power Agency is located in Carmel, Ind.

Washington deal ahead

Looking to sales on the horizon, the state of Washington is expected to price $479.61 million in series 2009 G.O. bonds April 7, according to a preliminary official statement.

The sale includes $441.385 million in series 2009E various-purpose G.O.s and $38.225 million in series 2009F motor vehicle fuel tax G.O.s.

The bonds will be sold on a competitive basis with Seattle-Northwest Securities Corp. and Montague De Rose and Associates LLC as the financial advisers.

The 2009E bonds are due 2010 to 2034, and the 2009F bonds are also due 2010 to 2034.

Proceeds will be used to reimburse the state for various capital expenses, as well as the construction and improvement of local and state roads.

Also ahead this month, the city of New York is set to price $433 million in series 2009I G.O. bonds on April 6, according to a preliminary official statement.

The sale includes $400 million in series 2009I-1 tax-exempt bonds and $33 million in series 2009I-2 taxable bonds.

Morgan Stanley & Co. is the senior manager for the negotiated sale.

The bonds are due 2011 to 2037.

Proceeds will be used for capital expenses.

San Diego USD G.O.s

In other upcoming sales, the San Diego Unified School District plans to sell $150 million in series 2009 G.O. bonds, according to a preliminary official statement released Monday.

The bonds (Aa2/AA/) will be sold on a negotiated basis with Goldman Sachs as the senior manager. The maturities have not yet been set on the bonds.

Proceeds will be used to update outdated student restrooms, plumbing and roofs; to renovate career and vocational classrooms and labs; to update classroom technology; to upgrade safety equipment; and to construct new schools.

Secondary firms slightly

Moving to the secondary market, a trader said Monday that the long end of the market firmed a bit, with yields down roughly 1 basis point.

"We're feeling slightly better today," he said. "[We're] down about a basis point on the long end. The short end is pretty much unchanged."

In specific trades, the Miami-Dade County's parks program bonds were seen moving. The 5.75% 2020s were trading around 2.66%.

© 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.