Munis outperform Treasuries; calendar reloaded; Cleveland Clinic to sell $805 million Tuesday

By Aaron Hochman-Zimmerman

New York, Aug. 7 - Municipal bonds remained ahead of Treasuries on the final day of a week packed with major new issues.

There was a "muted response to this morning's [non-farm payroll] numbers," said senior trader Anthony Shields, a senior vice president at Grigsby & Associates.

"There seems to be some skepticism as to their veracity," he said.

On the news, "govies went down hard," but they were able to recover some of the losses.

Munis were softer by 1 to 2 basis points earlier, and trading was slow, but investors who put money into the market were still chasing the available short-term bonds.

"I'm not sure why they do but they do," another trader said.

"It's a dynamic of technicals," he offered. The longer bonds are "going the way of BABs."

The trend was not surprising, he said. "I've seen that movie before."

The market may not be able to repeat the strong performances put on by Maryland and the Metropolitan Washington Airports Authority.

"Unless we see any kind of an uptick in Treasuries, it will be a lot tougher next week to perform," he said.

There is the chance we may "just coast through the summer," he said.

Cleveland Clinic to sell $805 million

The calendar for the upcoming week is headlined by Cleveland Clinic Foundation, Ohio, which will sell $805 million in series 2009A-B term bonds (Aa2/AA-/) on Tuesday, according to a calendar of upcoming sales.

The foundation will sell $305 million as a series A term bond and $500 million as a series B term bond. Both issues will mature in 2039.

J.P. Morgan Securities Inc. will act as underwriter for the negotiated deal.

"Ohio paper isn't as sought after as it used to be," the trader said, but "the clinic is such a great name."

Housing bonds

In the housing sector, the New York State Housing Finance Agency plans to sell $200 million in series 2009A-B personal income tax revenue bonds (/AAA/AA-) on Tuesday, according to a calendar of upcoming sales.

The agency will price $96.46 million as series A bonds and $103.54 million as taxable series B bonds.

Ramirez & Co. Inc. will act as lead underwriter for the negotiated deal.

Citigroup Global Markets Inc., Jefferies & Co., JPMorgan, Merrill Lynch & Co., Roosevelt & Cross Inc. and Siebert Brandford Shank & Co. LLC will act as co-managers.

Proceeds will be used to provide low interest loans.

The New York State Housing Finance Agency is located in New York.

Also, the Connecticut Housing Finance Authority of Rocky Hill, Conn., will sell $65 million in bonds, according to a market source.

The bonds are scheduled to price during the week of Aug. 10.

Also in the New York metro area, the New Jersey Economic Development Authority will sell $200 million in series 2009 bonds (A1/AA-/A+) on Thursday, according to a calendar of upcoming sales.

JPMorgan will act as underwriter for the negotiated deal.

The New Jersey Economic Development Authority is located in Trenton, N.J.

Bonds out west

On the left coast, the California Health Facilities Financing Authority intends to price $475 million in revenue bonds for the St. Joseph Health System on Thursday, according to a calendar of upcoming sales.

Morgan Stanley & Co. Inc. will act as underwriter for the negotiated deal.

The health system is based in Orange, Calif.

The Stockton Public Finance Authority in California will offer $176 million of water revenue delta water supply project bonds (/A/A), according to a calendar of upcoming sales.

The series A bonds will carry serial maturities from 2012 to 2016, and series B will carry term maturities in 2017, 2018, 2019, 2024 and 2038.

The bonds will come as both tax-exempt and Build America structures.

Citigroup Global Markets will act as underwriter for the negotiated deal scheduled for Tuesday.

The authority is located in Stockton, Calif.

Three for Texas

Meanwhile, deep in the heart of Texas, the Texas Public Finance Authority will offer $450 million in general obligation and refunding bonds (Aa1/AA/), according to a calendar of upcoming sales.

The bonds will be sold on Wednesday after a retail offer period on Tuesday.

Merrill Lynch & Co. will act as underwriter for the negotiated sale.

Bexar County, Texas, intends to sell $155.5 million in series 2009A-B combination flood control tax and revenue certificates of obligation (Aa1/AA+/AA+) on Thursday, according to a calendar of upcoming sales.

The county will sell $105 million of the series 2009A tax-exempt bonds with serial maturities from 2016 to 2029 and a term bond due 2035.

The series 2009B bonds will be $50 million Build America Bonds maturing in 2039.

Loop Capital Markets LLC will act as the underwriter for the negotiated issue.

The county seat is San Antonio.

Lone Star College System, Texas, plans to sell $150 million in limited tax G.O. bonds during the week of Aug. 10, according to a calendar of upcoming issues.

The bonds will carry serial maturities from 2010 to 2039.

First Southwest Co. will act as lead underwriter for the negotiated bonds. Siebert Brandford Shank, Coastal Securities Inc., Morgan Keegan & Co. Inc., Jefferies and Wells Fargo Brokerage Services LLC will act as co-managers.

The college system is based in the Woodlands, Texas.

Mile high in Denver

The Metro Wastewater Reclamation District in Denver plans to sell $250 million in series 2009A tax-exempt bonds and series 2009B Build America Bonds (Aa2/AAA/) on Tuesday, according to a calendar of upcoming sales.

RBC Capital Markets Corp. will act as underwriter for the negotiated deal.

Elsewhere in the Rockies, IdaCorp Energy LP plans to issue $166.1 million as two separate term bonds (A3/A-/A-) on Thursday, according to a calendar of upcoming sales

One $116.3 million bond will be sold through Sweetwater, Wyo., and will mature in 2026.

A second $49.8 million bond will be sold through Humboldt County in Nevada and will mature in 2024.

JPMorgan will act as underwriter for both negotiated bonds.

IdaCorp Energy is based in Boise, Idaho, and the seat of Humboldt County is Winnemucca, Nev.

Midwest set

In the heartland, the Kansas Development Finance Authority will offer $141.065 million over three tranches on Thursday, according to a calendar of upcoming sales.

The authority will issue $97.695 million in series 2009M-1 revenue bonds, $32.445 million series 2009M-2 Build America Bonds and $10.925 million series 2009N bonds.

Piper Jaffray & Co. will act as underwriter for the negotiated deal.

The Ohio Air Quality Development Authority plans to issue $92.245 million air quality revenue refunding bonds (A3/BBB/A-) on behalf of Columbus Southern Power Co., according to a calendar of upcoming sales.

The series 2009A-B bonds are scheduled to price on Wednesday.

JPMorgan will act as underwriter for the negotiated bonds.

The authority and the company are located in Columbus, Ohio.

The Minnesota Tax and Anticipation Borrowing Program intends to issue $118.194 million series 2009 certificates of participation (MIG 1) on Thursday, according to a calendar of upcoming sales.

Piper Jaffray will act as underwriter for the negotiated deal.

The Minnesota Tax and Anticipation Borrowing Program is located in St. Paul.

© 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.