Municipals end steady with $8 billion supply ahead; Florida’s $1.2 billion hurricane deal set

By Sheri Kasprzak

New York, Feb. 22 – Municipals rounded out a slow session mostly unchanged with just over $8 billion on tap for the week, market insiders said.

The 10-year muni bond yield ended the day at 1.76% and the 30-year bond yield at 2.81%.

Florida hurricane deal ahead

Looking to the week’s largest offering, after an initial delay, the Florida State Board of Administration Finance Corp. is slated to price $1.2 billion of revenue bonds. The deal was originally scheduled to price the week of Feb. 8.

The bonds (Aa3/AA/AA) will be offered through senior manager J.P. Morgan Securities LLC.

Proceeds will be used to provide cash to the Florida Hurricane Catastrophe Fund for insurance claims and to refund existing bonds.

NYC readies G.O. bonds

Also coming up this week, the City of New York is set to price $800 million of series 2016C-D general obligation bonds through Jefferies & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., JPMorgan and Siebert Brandford Shank & Co. LLC.

The offering is comprised of $750 million of series 2016C bonds due 2016 to 2035 and $50 million of series 2016D bonds due 2016 to 2035.

Proceeds will be used to redeem existing debt.

Pricing is scheduled for Tuesday.

North Carolina deal set

Looking to the competitive market, the State of North Carolina is ready to price $330 million of G.O. bonds on Wednesday.

The bonds (Aaa/AAA/AAA) are due 2017 to 2030.

Proceeds will be used to refund the state’s series 2003A public improvement bonds, 2006A clean water bonds, 2006A higher education bonds, 2007A public improvement bonds and 2010A public improvement bonds.

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