Municipals improve ahead of more modest primary market calendar; Dasny to price PIT bonds

By Sheri Kasprzak

New York, Dec. 12 – Municipals were stronger on the session Friday, market insiders said, pushed in part by better Treasuries.

Yields were lower by 2 basis points to 3 bps across the curve, even as Treasury yields fell by 9 bps.

After two weeks of massive supply, the new-issue calendar will prove to be more modest in the coming weeks ahead of the holidays, said a market insider.

“Issuers are pretty much taking a break for the holidays already,” said a sellsider during the session.

Dasny to bring PITs

Heading up the coming week’s action, the Dormitory Authority of the State of New York is set to price $518,285,000 of series 2014 state personal income tax revenue bonds in three tranches. Pricing is slated for Tuesday.

The offering includes $436.41 million of series 2014E tax-exempt bonds, $24,585,000 of series 2014F tax-exempt bonds and $57.29 million of series 2014G taxable bonds.

The bonds (Aa1/AAA/) will be sold through senior managers BofA Merrill Lynch, RBC Capital Markets LLC and Siebert Brandford Shank & Co. LLC.

Proceeds will be used to finance the construction of capital projects for the state’s Office of Mental Health, as well as to refund existing bonds issued for the Office of Mental Health.

The authority also plans to come to market on Tuesday with $76,575,000 of series 2015A revenue bonds for the Pratt Institute. Those bonds (A3) will be sold through Janney Montgomery Scott LLC, and proceeds will be used to finance the construction of student residential facilities at the institute’s Brooklyn campus, as well as to refund the institute’s series 1999 bonds.

Scottsdale Lincoln deal set

Also coming up during the week, the Arizona Health Facilities Authority is expected to price $314.78 million of series 2014A revenue bonds for the Scottsdale Lincoln Hospital.

The bonds (A2//A) will be sold through Morgan Stanley & Co. LLC and Wells Fargo Securities LLC on Tuesday.

Proceeds will be used to refinance debt associated with the construction, equipment, acquisition and renovation of a health and emergency services building in Scottsdale.

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