Munis mostly flat; Massachusetts attracts retail demand; California preps $2.3 billion deal

By Cristal Cody

Eureka Springs, Ark., March 3 – Municipal bonds headed out mostly unchanged to 1 basis point softer on Thursday with most participants looking ahead to Friday’s federal February jobs report.

“Everyone’s waiting on the number tomorrow,” a trader said. “It’s a snooze fest.”

Massachusetts was in the primary market on Thursday with a $1.1 billion negotiated sale of general obligation bonds (Aa1/AA+/AA+) in two tranches that saw good retail demand, a source said.

Final pricing details for the deal were not available by press time.

BofA Merrill Lynch and Wells Fargo Securities LLC were the lead managers.

“Supply has been pretty manageable,” a market source said. “There was a lot of supply in February, and there’s the big Cali deal next week.”

The State of California is set to price $2.3 billion of new money and refunding bonds on Tuesday. The general obligation bonds (Aa3/AA-/A+) will be offered in four tranches in a negotiated sale.

Also on the calendar, New York State Urban Development Corp. is offering $1,230,130,000 of state personal income tax revenue bonds.

California markets $2.3 billion

California plans to price $2.3 billion of general obligation bonds (Aa3/AA-/A+), according to a market source and a preliminary official statement.

The deal includes $830 million of various purpose general obligation bonds, $65 million of school facilities general obligation bonds, $1,155,000 of various purpose general obligation refunding bonds and $250 million of mandatory put general obligation bonds.

The bonds will price through a negotiated offering on Tuesday.

Citigroup Global Markets Inc. and Goldman, Sachs & Co. are the senior managers.

Siebert Brandford Shank & Co., LLC and U.S. Bancorp Investments, Inc. are co-senior managers.

Proceeds from the sale will be used to fund projects, pay certain outstanding general obligation commercial paper notes and advance refund certain outstanding general obligation bonds.

Boston to price G.O. bonds

Also coming up on Tuesday, the City of Boston, Mass. is marketing $148.11 million of general obligation and general obligation refunding bonds (Aaa/AAA) in a competitive sale, according to a preliminary official statement and notice of sale.

The deal includes $140 million of series 2016A general obligation bonds with serial maturities from 2017 through 2036 and $8.11 million of series 2016B G.O. refunding bonds due in 2026.

First Southwest Co. is the financial advisor.

Proceeds will be used to finance various capital projects of the city and to advance refund a portion of outstanding series 2007A general obligation bonds.

New York Urban offers $1.23 billion

New York State Urban Development is in the pipeline with $1,230,130,000 of state personal income tax revenue bonds (/AAA/AA+), according to a preliminary official statement.

The series 2016A general purpose bonds have serial maturities from 2018 through 2038.

The bonds will be sold in a negotiated offering led by senior managers BofA Merrill Lynch, Citigroup Global Markets Inc. and Ramirez & Co., Inc.

Proceeds will be used to refund certain outstanding state personal income tax revenue bonds and other state-supported debt previously issued.

Mayo Clinic organizes bond sale

The Mayo Clinic is on the calendar with a $300 million offering of taxable bonds, according to a preliminary official memorandum.

The series 2016 bonds will be sold in a negotiated offering managed by BofA Merrill Lynch and Wells Fargo Securities LLC.

Proceeds from the deal will be used for general corporate purposes of the Mayo Clinic.

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