Munis firm; deal pipeline fills; New York Liberty’s $1.63 billion offering leads week’s action

By Cristal Cody

Tupelo, Miss., Oct. 27 – Municipals ended about 1 basis point tighter on the long end on Monday as the market focused on about $5.9 billion of issuance expected over the week, according to informed sources.

“The new issue supply is lower,” one source said.

More than $7 billion of municipal bonds priced last week.

The New York Liberty Development Corp. likely will lead the week’s deal action with a $1.63 billion offering on Tuesday of series 2014 3 World Trade Center revenue bonds, according to a market source.

The deal includes $1.08 billion of class 1 bonds due Nov. 15, 2044, $300 million of class 2 bonds due Nov. 15, 2041 and $250 million of class 3 bonds due Nov. 15, 2044.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are senior managers of the negotiated sale.

Proceeds from the offering will be used to finance the completion and construction of Tower 3 of the World Trade Center.

Montgomery County to price

Looking ahead to November, Montgomery County, Md., plans to price $821,865,000 of general obligation bonds (Aaa/AAA/AAA), according to a preliminary official statement.

The deal includes $500 million of series 2014A consolidated public improvement bonds and $321,865,000 of series 2014B consolidated public improvement refunding bonds.

The series 2014A bonds have serial maturities from 2015 through 2034. The series 2014B bonds are due from 2016 through 2029.

The bonds will price competitively on Nov. 6.

Davenport & Co. LLC is the financial adviser for the offering.

Proceeds will be used to finance the costs of capital projects in the county, refinance all or a portion of outstanding bond anticipation notes and refund certain outstanding G.O. bonds.

Mercy Health offers bonds

Also on the calendar, the Missouri Health and Educational Facilities Authority of intends to offer $355 million of series 2014F revenue bonds for Mercy Health, according to a preliminary official statement.

The bonds (Aa3/AA-/) do not have maturities set yet.

BofA Merrill Lynch is the lead manager of the negotiated sale.

Proceeds from the deal will be used to finance, refinance and reimburse the costs for some Mercy Health facilities.

Illinois Toll Highway ahead

The Illinois State Toll Highway Authority joined the deal pipeline with a $400 million offering of series 2014C toll highway senior revenue bonds, according to a preliminary official statement.

The bonds have serial maturities from 2027 through 2039.

Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to pay a portion of improvement costs for the toll-way system.

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