Municipals close mostly unchanged ahead of new issues; Ohio readies $1.1 billion turnpike deal

By Sheri Kasprzak

New York, July 29 - Municipals closed out a quiet session on Monday mostly unchanged despite some weakness in the Treasuries market, insiders reported.

"It's a light day [for trading]," a trader said in the early afternoon.

"We're not seeing a lot of movement overall. I think we're waiting on some of the bigger deals to price. Initial pricing is coming out on some of the big names like Emory [University]."

The quiet session on Monday was a welcome relief to the market, which saw 30-year AAA benchmark yields climb 10 basis points on Friday to close at 4.21% and 10-year bonds climb by 7 bps to close at 2.70%.

$6.5 billion ahead

Looking to the new-issue calendar, about $6.5 billion of new offerings are expected. They will be led by a $1,107,865,907.50 offering of turnpike revenue bonds from the State of Ohio.

The offering includes $73.78 million of series 2013A turnpike revenue bonds (Aa3/AA-/AA) and $1,034,085,907.50 of series 2013A turnpike junior lien revenue bonds (A1/A+/A+).

The bonds will be offered through Citigroup Global Markets Inc.

A portion of the proceeds will go toward non-turnpike transportation projects with the rest going toward turnpike capital projects.

The senior lien bonds are due Feb. 15, 2050, and the junior lien bonds are due 2019 to 2048 with a term bond due in 2050.

Oregon preps TANs

Another major offering this week comes from the State of Oregon, which is poised to price $642,775,000 of series 2013A full faith and credit tax anticipation notes (MIG 1/SP-1+/F1+).

The notes will be sold on a negotiated basis through BofA Merrill Lynch and Citigroup.

The notes are due July 31, 2014, and proceeds will be used to meet the seasonal cash needs for the state ahead of the collection of certain taxes.

Also ahead, the Private Colleges and Universities Authority of Georgia will come to market during the week with $206.93 million of series 2013A revenue bonds for Emory University. Initial pricing was already taking place on Monday, market insiders said.

The bonds (Aa2/AA/AA+) will be sold through Barclays.

The bonds are due 2014 to 2022 with a term bond due in 2043.

Proceeds will be used to refund the university's series 2002A and 2005A revenue bonds and its series 2010 commercial paper notes.

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