M-S-R Energy Authority prices $1.02 billion in gas revenue bonds; primary inventory tapers

By Sheri Kasprzak

New York, Aug. 27 - Municipals once again saw some firming as the primary calendar thinned Thursday. Among the light primary activity was a $1 billion offering from the M-S-R Energy Authority in California. One market insider said the decreased primary action may be partly responsible for the firm tone.

"We've really been pushed down by the primary market for the past couple of weeks," said the trader.

"Now that things are cooling off there, we're getting some[what] better. I'd say the long end is probably up 2, 3 basis points. It's better by maybe a basis point or two on the shorter end, but it looks good."

Among the light trading action Thursday, the Dallas County Hospital District's series 2009B Build America Bonds were seen moving. The 6.171% 2034 bonds were seen at 5.867% after pricing Wednesday at par. The 4.948% 2020s were seen at 4.883% after pricing at par.

Meanwhile, the Dormitory Authority of the State of New York's recently priced series 2009D state personal income tax bonds were trading. The 5% 2019s were seen at 3.374%.

Back to that M-S-R sale, the authority brought $1,015,855,000 in series 2009 gas revenue bonds Thursday, said a pricing sheet released in the afternoon.

The bonds were sold through senior manager Citigroup Global Markets Inc. The sale included $199.965 million in series 2009A bonds, $497.21 million in series 2009B bonds and $318.68 million in series 2009C.

Each series of bonds has maturities in 2029, 2034 and 2039. The 2029 bonds for all series of the bonds have a 6.125% coupon, the 2034 bonds a 7% coupon and the 2039 bonds a 6.5% coupon. The bonds all priced at par.

Proceeds will be used to fund the prepayment of a natural gas agreement.

The authority is based in Modesto, Calif.

Austin sells $136.39 million

In other pricing news Thursday, the City of Austin in Texas sold $136.385 million in series 2009 public improvement bonds and certificates Thursday, according to a pricing sheet.

The sale included $46.24 million in series 2009A public improvement bonds, $63.845 million in series 2009B public improvement Build America Bonds, $12.5 million in series 2009 certificates of obligation and $13.8 million in series 2009 public property finance contractual obligations.

The 2009A bonds are due 2010 to 2016 with coupons from 2.5% to 5%.

The 2009B bonds are due 2017 to 2020 with term bonds due 2024 and 2029. The serials have coupons from 4.146% to 4.696%, all priced at par. The 2024 bonds have a 4.746% coupon, priced at par, and the 2029 bonds have a 5.31% coupon, also priced at par.

The 2009 COPs are due 2010 to 2029 with term bonds due 2034 and 2039. The serial bonds' coupons range from 2.5% to 4.25%. The 2034 bonds have a 4.7% coupon, and the 2039 bonds have a 4.75% coupon.

The 2009 public property finance contractual obligations are due 2010 to 2019 with coupons from 2.5% to 3.25%.

J.P. Morgan Securities Inc. and Estrada Hinojosa & Co. Inc. were the lead managers.

Proceeds will be used to purchase equipment and make capital improvements.

Tennessee Housing brings home bonds

Elsewhere, the Tennessee Housing Development Agency sold $75 million in series 2009-2 homeowners program bonds Thursday, said a pricing sheet.

The bonds (Aa1/AA+/) were sold through senior manager Merrill Lynch & Co. Inc.

The bonds are due 2011 to 2021 with term bonds due 2024, 2027 and 2030. The serial coupons range from 1.15% to 4.15%, all priced at par. The 2024 bonds have a 4.55% coupon, the 2027 bonds a 4.7% coupon and the 2030 bonds a 5% coupon, also priced at par.

Proceeds will be used to make mortgage loans.

San Francisco sale leads issues

Looking to the primary calendar for the week ahead, the number of deals is thinning out, as is the size of the offerings in the pipeline. The largest sale of the week comes from the San Francisco Public Utilities Commission. The commission plans to sell $375 million in series 2009B San Francisco water revenue bonds (A1/AA-/) competitively, a sharp contrast to recent weeks that have featured at least two billion-dollar sales.

Those bonds will fund improvements to the city's water system. The sale will take place Tuesday.

Also ahead, the State of Ohio plans to bring to market $170.32 million in series 2009 state facilities refunding bonds Wednesday, said a sales calendar.

The deal includes $82.03 million in series 2009B administrative building bonds, $72.205 million in series 2009B adult correctional facilities bonds and $16.085 million in series 2009B juvenile correction facilities bonds.

The administrative building bonds are due 2010 to 2024. The adult correctional facilities bonds are due 2010 to 2024, and the juvenile correctional facilities bonds are due 2013 to 2024.

Proceeds will be used to refund bonds issued to construct the state Department of Administrative Services' capital facilities, to refund bonds issued to construct a new prison and various improvements to existing correctional facilities and to refund bonds issued to construct facilities for the Department of Youth Services.

Pasadena USD deal ahead

In other upcoming sales, the Pasadena Unified School District in California is scheduled Tuesday to price $125 million in series 2009A general obligation bonds, said a sales calendar.

The deal includes $30.895 million in series 2009A-1 tax-exempt bonds and $94.105 million in series 2009A-2 Build America Bonds.

The bonds (Aa3/AA-/) will be sold on a negotiated basis with RBC Capital Markets Inc. as the senior manager.

Proceeds will be used to renovate school facilities throughout the district.

© 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.