Market closes out Monday flat; Utah preps largest deal of week; New Mexico Finance to sell

By Sheri Kasprzak

New York, Sept. 20 - Municipal yields ended Monday flat in a light session ahead of a week that promises to offer a decent supply of offerings for investors, market insiders reported.

"It's really very quiet," said one trader reached in the afternoon.

"We're pretty much waiting on some supply, and that should happen tomorrow. For now, the market is relatively flat across the curve."

Meanwhile, the State of Utah is set to bring $1.06 billion in general obligation bonds to market on Thursday - a deal that is expected to pull in plenty of investor interest.

"It's funny, because Utah is not a name you see out there that often," noted one sellsider of the offering.

"They're a good name, though, and I fully expect a lot of investor activity on this one. They're triple-A at all the agencies. They have a cap on the amount of debt they can issue each year, and I think that's really going to look good to investors. They have a solid fiscal policy in place. Plus, it's a pretty quiet week for new issues, so I'm sure it will garner a good amount of interest."

The offering is comprised of $90.335 million in series 2010A G.O. bonds, $790.1 million in series 2010B Build America Bonds and $179.525 million in series 2010C G.O. refunding bonds.

The bonds (Aaa/AAA/AAA) will be sold through lead managers Goldman, Sachs & Co. and J.P. Morgan Securities Inc.

The state intends to use the proceeds to fund ongoing highway construction projects and refund existing debt.

N.M. deal ahead

Looking to Tuesday's offerings, the New Mexico Finance Authority is set to sell $427.645 million in series 2010B senior-lien transportation project refunding revenue bonds, said a sales calendar.

The bonds (Aa1/AA+/) will be sold through Morgan Stanley & Co. Inc.

The bonds are due 2012 to 2021.

Proceeds will be used to refund the authority's series 2002A, 2002C, 2002D and 2004A bonds.

Based in Santa Fe, the authority provides funding to a variety of public projects.

Tennessee school deal set

Also coming up during the week, the Tennessee State School Bond Authority is expected to bring to market $212.44 million in series 2010 qualified school construction bonds, said a preliminary official statement.

The bonds will be sold on a negotiated basis with Barclays Capital Inc. and Citigroup Global Markets Inc. as the senior managers.

The bonds are due Sept. 15, 2027.

Proceeds will be used to construct and renovate schools throughout the state.

Based in Nashville, the authority provides financing for new school construction and renovations.

Also out of the Volunteer State this week, the Tennessee Housing Development Agency, another Nashville-based operation, plans to bring $120.7 million in series 2010 homeownership program bonds, according to a preliminary official statement.

The sale includes $25 million in series 2010-1A non-AMT bonds, $6.475 million in series 2010-1B non-AMT bonds and $89.225 million in series 2010-1C AMT bonds.

The bonds (Aa1/AA+/) will be sold on a negotiated basis with Bank of America Merrill Lynch as the lead manager.

The 2010-1A bonds are due 2014 to 2022 with a term bond due July 1, 2025. The 2010-1B bonds are due 2011 to 2017. The 2010-1C bonds are due 2011 to 2021 with term bonds due Jan. 1, 2025 and July 1, 2025.

Proceeds will be used to finance mortgage loans.

The agency provides affordable housing loans for low- to moderate-income Tennessee residents.

© 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.