Munis end week flat, $9 billion new issues coming; Triborough Bridge preps $904 million deal

By Sheri Kasprzak

New York, Dec. 7 - Municipal yields were flat to round out Friday as trading activity continued to slow, market sources reported.

"Overall, yields are unchanged," said a trader in the afternoon.

"We're waiting to see how next week's calendar shapes up, because I think after next week, things are going to slow way down in terms of supply. With the holidays coming up, new issues are going to taper off substantially."

The coming supply, said another market source, should be well digested, as this week's offerings have been.

"New deals are getting absorbed quickly, so I'm not concerned about the heavy calendar," he said.

Meanwhile, about $9 billion in new offerings will hit the market next week, led by a massive sale from the Triborough Bridge and Tunnel Authority of New York, said Alan Schankel, managing director with Janney Montgomery Scott LLC.

Triborough deal in two tranches

That Triborough Bridge offering will be conducted in two tranches.

The deal includes $637,985,000 of series 2012C subordinate revenue refunding bonds and $266,315,000 of series 2012D general revenue refunding bonds.

The 2012C bonds are due 2013 to 2032, and the 2012D bonds are due 2013 to 2032.

The bonds will be sold through Jefferies & Co., Goldman Sachs & Co. and Loop Capital Markets LLC.

Proceeds from the deal will be used to refund the authority's series 2002E and 2003A revenue bonds.

Virginia Housing preps deal

Heading up the week's competitive action, the Virginia Housing Development Authority is set to sell $560 million of series 2012C commonwealth mortgage bonds.

The deal includes $90 million of series 2012C-STEM I bonds, $80 million of series 2012C-STEM II bonds, $80 million of series 2012C-STEM III bonds and $310 million of series 2012C-STEM IV bonds.

The 2012C-STEM I bonds are due Jan. 24, 2013, the series 2012C-STEM II bonds are due Feb. 28, 2013, and the series 2012C-STEM III bonds are due April 1, 2013. The series 2012C-STEM IV bonds are due May 23, 2013.

Proceeds from the bonds (Aaa/VMIG 1/AAA/A-1+/) will be used to finance mortgage loans and refund previously issued debt.

Alabama highway bonds price

Moving to the week's primary action, the Alabama Federal Aid Highway Finance Authority came to market this week with $327,935,000 of series 2012 federal highway grant anticipation bonds, said a pricing sheet.

The bonds (Aa3/AA/) were sold through Goldman Sachs & Co.

The bonds are due 2013 to 2026 with 4% to 5% coupons.

Proceeds will be used to finance road and bridge projects within the state.

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