Munis close unchanged to slightly firmer ahead of major deals; PANYNJ's $1 billion sale ahead

By Sheri Kasprzak

New York, Sept. 26 - Municipals kicked off the week on a mixed note. Short- to intermediate-term bonds were mostly unchanged to slightly softer, and long-term bonds were seen a bit better, said market insiders.

Yields on 30-year bonds were down 5 basis points on Monday, said one trader.

"Retail's kind of looking at what's out there this week, and they don't seem to be as active as they were last week," the trader said.

One of the major offerings of the week comes from the City of New York, which priced for retail $585 million of its series 2012 tax-exempt general obligation bonds on Monday. They weren't biting, said the trader.

The city will sell its G.O. bonds (Aa2/AA/AA) for institutional investors on Tuesday through Siebert Brandford Shank & Co. LLC.

The proceeds from the sale will be used to fund capital requirements. The deal comes the same day as the city plans to come to the competitive market with $65 million of series 2012 taxable fixed-rate G.O. bonds.

PANYNJ deal leads calendar

Although the week ahead will provide a bit less primary supply than the previous week, a major offering is coming up. The Port Authority of New York and New Jersey is poised to sell during the week $1 billion of 168th series consolidated bonds through Citigroup Global Markets Inc.

The bonds are due Oct. 1, 2051, and proceeds will be used to fund capital expenditures related to One World Trade Center and other expenses related to the World Trade Center site.

Mississippi to bring several

Looking ahead, the State of Mississippi will be coming to market in a big way. At least three offerings are in the works.

The state plans to price $353.73 million of series 2011A capital improvement projects G.O. bonds with Morgan Stanley & Co. LLC and Bank of America Merrill Lynch as the senior managers.

Those bonds are due 2024 to 2025 and 2029 to 2031 with a term bond due in 2036.

Proceeds will be used to fund improvements to the Jackson Zoo, the Ohr-O'Keefe Museum, the Children's Museum, the Craft Center, the R.H. Harrison Complex, the Bureau of State-Owned Buildings and state and community colleges.

Taxable G.O.s ahead

The state also intends to bring $261.3 million of series 2011C taxable G.O. bonds, said a preliminary official statement.

The bonds will be sold on a negotiated basis with Bank of America Merrill Lynch and Morgan Stanley as the senior managers.

The bonds are due 2016 to2028.

Proceeds will be used to fund loans to existing industries and local economic development entities to purchase new technologies, land and buildings to improve competitiveness and productivity.

G.O. refunding bonds set

The state will also offer $60.19 million of series 2011 G.O. refunding bonds, said a preliminary official statement.

The offering includes $29.625 million of series 2011B tax-exempt bonds and $30.565 million of series 2011D taxable G.O. refunding bonds.

The bonds will be sold on a negotiated basis with Morgan Keegan & Co. Inc. and Stephens Inc. as the senior managers.

The 2011B bonds are due 2014 to 2019. The 2011D bonds are due 2012 to 2018.

Proceeds will be used to refund the state's series 2002A, 2003 and 2004 G.O. bonds.

Lower Colorado River deal set

In other upcoming offerings, the Lower Colorado River Authority of Texas announced plans Monday to come to market with $595.08 million of series 2011 transmission contract refunding revenue bonds.

The deal includes $405.05 million of series 2011A bonds and $190.03 million of series 2011B bonds, said a preliminary official statement.

The bonds (A2/A/A+) will be sold on a negotiated basis with Morgan Stanley and Barclays Capital Inc. as the senior managers.

The 2011A bonds are due 2012 to 2026. The 2011B bonds are also due 2012 to 2026.

Proceeds will be used to refund outstanding transmission contract revenue notes and other transmission contract revenue debt.

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