Municipals improve as secondary and primary both see activity; New York water bonds price

By Sheri Kasprzak

New York, Nov. 14 - Municipals saw another busy day for both the primary and secondary markets, market sources said Thursday.

"We're seeing a fair amount of interest in short- to medium-term bonds [in secondary]," a trader said during the session.

"Overall, there's a firmer tone, possibly because of this uptick in secondary, but there's also a lot going on in primary, which from what I've seen has been solid. A lot of deals are getting bumped."

New York water bonds price

Amid the larger offerings coming Thursday, the New York City Municipal Water Finance Authority priced $397,085,000 of series 2014BB water and sewer system second general resolution revenue bonds.

The bonds (/AA+/) were sold through lead manager M.R. Beal & Co.

The bonds are due July 15, 2046 and have a 4.625% coupon that priced at 97 to yield 4.808% and a 5% coupon that priced at 101.9 to yield 4.75%, said a pricing sheet.

Proceeds will be used to repay commercial paper notes and finance water and sewer capital projects.

Texas A&M brings debt

Also during the session, the Texas A&M University System sold $208.2 million of series 2013 permanent university fund bonds, said a pricing sheet.

The bonds (Aaa/AAA/AAA) were sold competitively.

The bonds are due 2014 to 2033 with 3% to 5% coupons and 0.15% to 4.01% yields.

Looking at the 4.01% yield in the 20-year maturity, one market source said that the bonds were "aggressively" priced compared to some other offerings.

Proceeds will be used to finance capital projects for universities within the system and to refund existing debt.

New Jersey Building sells bonds

Elsewhere, the New Jersey Building Authority hit the market with $327,865,000 of series 2013 revenue refunding bonds and bond anticipation notes.

The offering included $258,595,000 of series 2013A bonds, $21,625,000 of series 2013B taxable bonds and $47,645,000 of series 2013 bond anticipation notes, according to pricing sheets.

The bonds (/A+/) were sold through senior manager Morgan Stanley & Co. LLC.

The 2013A bonds are due 2015 to 2027 with 2.5% to 5% coupons.

The 2013B bonds are due 2015 to 2018 with 0.748% to 2.303% coupons all priced at par.

The 2013 notes are due June 15, 2016, have a 3% coupon and priced at 103.666.

Proceeds will be used to refund existing debt and to provide interim financing for capital projects.

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