Yields flat ahead of decent primary supply; Texas Transportation to price $1.5 billion Tuesday

By Sheri Kasprzak

New York, July 26 - Municipal yields were seen largely unmoved to kick off the week, with a steady supply of new deals hitting the market.

"Muni market visible supply, at $11 billion, is inching up, but forward supply is dominated by BABs issues in the coming week, including a $1.5 billion Texas Transportation Commission deal," said Alan Schenkel, managing director at Janney Montgomery Scott LLC.

The Texas Transportation deal includes $115.565 million in series 2010A tax-exempt bonds and $1,384,435,000 in series 2010B Build America Bonds (Aaa/AAA/). That offering is slated to come to market Tuesday through Goldman, Sachs & Co.

The authority intends to use the proceeds to construct and improve state highways.

A sellsider familiar with the sale said in a recent interview that the offering is likely to attract a solid amount of interest and could potentially be upsized. Investors, the sellsider noted, are looking for high-rated bonds, and this could provide a high-quality offering for buyers who might otherwise be frightened away by excessive risk.

NYC, Maryland to price

The City of New York and the State of Maryland were both conducting retail order periods Monday on sales expected later in the week.

New York will price $800 million in fiscal series 2011 general obligation bonds for institutional buyers Tuesday. Those bonds will be priced through Barclays Capital Inc.

Proceeds will be used to fund general capital improvements.

Meanwhile, Maryland will sell $289.76 million in series 2010 G.O. bonds (Aaa/AAA/AAA) competitively on Tuesday. That deal includes $165 million in second series B bonds, which are due 2013 to 2021; $75 million in second series C bonds, which are due 2022 to 2025; and $49.76 million in second series D bonds, which are due 2025.

Proceeds will be used for public purposes, including state facilities and local governments, as well as to make grants and loans.

Washington deal set

Also ahead during the week, the State of Washington is set to price $720.34 million in series 2011 various purpose G.O. and refunding bonds on Wednesday, said a notice of sale.

The bonds (/AA+/AA+) will be sold on a competitive basis with Montague DeRose & Associates and Seattle-Northwest Securities Corp. as the financial advisers.

The offering includes $350.88 million in series 2011A various purpose G.O. bonds, $118.29 million in series 2011T taxable G.O. bonds and $251.17 million in series 2011R-A various purpose G.O. refunding bonds.

Proceeds will be used to refund existing debt and finance general capital projects.

Clark sale planned

Coming up on Thursday, Clark County in Nevada is scheduled to bring to market $239.815 million in series 2010 sales and excise tax revenue bonds, said a preliminary official statement.

The offering is comprised of $108.34 million in series 2010B improvement and refunding bonds and $131.475 million in series 2010C Build America Bonds.

The 2010B bonds are due 2011 to 2021, and the 2010C bonds are due 2021 to 2030.

The bonds (Aa2/AA/) will be sold competitively with Hobbs, Ong & Associates Inc. and Public Financial Management Inc. as the financial advisers.

The county plans to use the proceeds to refund commercial paper notes and to fund air quality improvements for the Regional Transportation Commission of Southern Nevada.

The county seat is Las Vegas.

Michigan sale ahead

Out on the horizon, the Michigan Finance Authority is expected to price $745.9 million in series 2010D state aid revenue notes, said a preliminary official statement.

The offering is comprised of $256.625 million in series 2010D-1 notes, $269.1 million in series 2010D-2 notes and $220.175 million in series 2010D-3 notes.

The notes will be sold through senior managers Siebert Brandford Shank & Co. and Morgan Stanley & Co. Inc.

The 2010D-1 notes are due Aug. 19, 2011, and the 2010D-2 notes are due Aug. 22, 2011. The 2010D-3 notes are also due Aug. 22, 2011.

Proceeds will be used to purchase notes issued by school districts within the state.

© 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.