Municipals end mostly flat as market awaits $9 billion of supply; Florida hurricane deal ahead

By Sheri Kasprzak

New York, Feb. 19 – The municipals market was little moved Friday as the market prepared for a much-larger new-issue slate, traders said.

Yields on top-rated munis were mostly flat to close out a holiday-shortened week.

Meanwhile, about $9 billion of new issues are expected to price during the week ahead, led by several larger deals.

Florida hurricane bonds set

Leading the pack is a $1.2 billion offering from the Florida State Board of Administration Finance Corp. for the Florida Hurricane Catastrophe Fund, which had been scheduled to price during the week of Feb. 8 but was pulled.

J.P. Morgan Securities LLC is the senior manager for the bonds (Aa3/AA/AA).

Proceeds will provide cash to the hurricane fund for insurance claims and to refund existing bonds.

New York eyes G.O. bonds

Another significant offering comes from the City of New York, which is on the calendar with $800 million of general obligation bonds in two tranches.

The deal includes $750 million of series 2016C bonds due 2016 to 2035 and the $50 million of series 2016D bonds are due 2016 to 2035.

The bonds will be sold through senior managers Jefferies & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Siebert Brandford Shank & Co. LLC.

Proceeds will be used to redeem existing debt.

U of North Carolina deal ahead

Coming up on Tuesday, the University of North Carolina at Chapel Hill is on tap to price $401,025,000 of series 2016C taxable general revenue refunding bonds (Aaa/AAA/AAA) through BofA Merrill Lynch and Wells Fargo Securities LLC.

The bonds are due 2016 to 2028 with a term bond due in 2036.

Proceeds will refund the university’s series 2005A revenue refunding bonds and 2007 revenue bonds.

© 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.