Municipals steady as largest deals of the week price; Dasny prices $1 billion of bonds

By Sheri Kasprzak

New York, Jan. 7 – Municipals were largely unmoved Wednesday as the largest deals of the week hit the market, led by a $1 billion offering from the Dormitory Authority of the State of New York, insiders reported.

Yields were mostly flat as the surge of supply hit, said a trader in the afternoon.

“There could be a case made for some strength on the short end,” the trader said.

It was the same story, mostly, for Treasuries, which reversed a recent trend of strength after the central bank released some indicators on a rate hike for later this year. The 30-year bond yield was flat while the 10-year note yield shook off earlier weakness to close 1 bp lower.

Dasny prices $1 billion

Meanwhile, the largest offering of the week came to market. Dasny priced $1,009,330,000 of series 2015A general purpose state personal income tax bonds.

The bonds (/AAA/AA+) were sold through senior managers Barclays, Citigroup Global Markets Inc. and Rice Financial Products Co.

The bonds are due 2015 and 2020 to 2036 with 2% to 5% coupons.

Proceeds will be used to refund the authority’s series 2003, 2004A and 2005A-B personal income tax bonds.

Texas A&M taps market

Another large offering came Wednesday from Texas A&M University, which sold $383.75 million of series 2015 revenue financing system bonds in three tranches.

The offering included $64.67 million of series 2015A bonds, $142,155,000 of series 2015B bonds and $176,925,000 of series 2015C taxable bonds.

The 2015A and 2015B bonds were offered through senior manager Citigroup, and the 2015C bonds were sold through J.P. Morgan Securities LLC.

The bonds (Aaa/AA+/AA+) will be used to refund the university’s series 2005A-B revenue financing system bonds.

The 2015A bonds are due 2015 to 2025 with 2% to 5% coupons and 0.09% to 2.03% yields.

The 2015B bonds are due 2015 to 2035 with term bonds due in 2039 and 2044. The serial coupons range from 2% to 5% with yields from 0.09% to 2.96%. The 2039 bonds have a 3.5% coupon priced at par, and the 2044 bonds have a 4% coupon priced at 105.158 to yield 3.28%.

The 2015C bonds are due 2015 to 2029 with a term bond due in 2034. The serial coupons range from 0.12% to 3.233%, all priced at par. The 2034 bonds have a 3.451% coupon priced at par.

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