Municipals trade lower; week’s deal calendar grows; Ohio University to offer 100-year bonds

By Cristal Cody

Tupelo, Miss., Nov. 3 – Municipal bonds headed out 2 basis points to 3 bps weaker in trading on Monday, while Treasuries ended modestly lower, market sources said.

“Supply is a bit higher,” one source said of the week’s primary calendar. “There’s a large New York TFA deal and a Montgomery County, Maryland, deal and a couple of large regular muni deals.”

The New York City Transitional Finance Authority plans to price $850 million of series 2015B future tax secured subordinated bonds, according to a preliminary official statement and a market source.

The deal includes $700 million of series 2015B-1 tax-exempt bonds and $150 million of series 2015B-2 taxable bonds.

The 2015B-1 bonds have serial maturities from 2016 through 2042, and the 2015B-2 bonds are due 2018 to 2026.

Barclays is the lead manager of the negotiated offering.

Proceeds will be used to finance general city capital expenditures and other capital purposes.

Montgomery County, Md., plans an $821,865,000 offering of general obligation bonds (Aaa/AAA/AAA) that includes $500 million of series 2014A consolidated public improvement bonds and $321,865,000 of series 2014B consolidated public improvement refunding bonds, according to a preliminary official statement.

The series 2014A bonds have serial maturities from 2015 through 2034. The series 2014B bonds are due from 2016 through 2029.

The bonds will price competitively on Thursday.

Davenport & Co. LLC is the financial adviser for the offering.

Proceeds will be used to finance the costs of capital projects in the county, refinance all or a portion of outstanding bond anticipation notes and refund certain outstanding G.O. bonds.

Louisville and Jefferson County Metropolitan Sewer to price

Looking to Tuesday’s session, the Louisville and Jefferson County Metropolitan Sewer District intends to price $226.34 million of sewer and drainage system subordinated bond anticipation notes via a competitive offering, according to a preliminary official statement.

The BANs are due Nov. 24, 2015.

J.J.B. Hilliard, W.L. Lyons, LLC is the financial adviser.

Proceeds will be used to retire outstanding notes on Nov. 26.

South Carolina district ahead

Coming up on Wednesday, School District No. 1 of Richland County, S.C., is set to price $170,735,000 of G.O. bonds and G.O. refunding bonds (Aa2/AA-/) via a competitive offering, according to a preliminary official statement.

The deal includes $8.3 million of series 2014A G.O. bonds, $32.17 million of series 2014B G.O. refunding bonds, $60.76 million of series 2014C G.O. refunding bonds and $69,505,000 of series 2014D G.O. refunding bonds.

The series 2014A bonds are due March 1, 2015. The series 2014B bonds have serial maturities from March 1, 2016 through March 1, 2020. The series 2014C bonds have serial maturities from March 1, 2018 through March 1, 2022. The series 2014D bonds are due March 1, 2019 through March 1, 2032.

Public Financial Management, Inc. is the financial adviser.

Proceeds will be used to provide funds to defray the costs of classroom technology upgrades; for construction, improvements, equipment, renovations and repairs to school buildings and facilities and to refund the 2016 through 2024 maturities of the outstanding series 2005A bonds, the 2018 through 2027 maturities from the series 2006B bonds and the 2019 through 2032 maturities from the series 2007A bonds.

Ohio U preps 100-year deal

Also in the pipeline, Ohio University intends to offer $250 million of 100-year general receipts bonds, according to a preliminary official statement.

The series 2014 bonds (Aa3/A+/) are due Dec. 1, 2114.

Barclays is the bookrunner for the negotiated offering. Goldman Sachs & Co. is the co-senior manager.

Proceeds will be used to pay a portion of costs of projects that include construction and upgrades to university facilities.

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