Munis close out flat to a touch off; NYC Transitional Finance gears up for $875 million sale

By Sheri Kasprzak

New York, Jan. 7 - Municipals ended the week unchanged to slightly weaker amid light trading action, market insiders said.

"I'd say most of the curve is unchanged, but there might be spots where we're off by a basis point," said one trader.

"It's been a fairly quiet day in terms of trading. There's not a lot moving."

Meanwhile, the week might have been quiet, but a spate of deals is on the way for the coming week, led by an $875 million offering of series 2011C future tax secured subordinated bonds from the New York City Transitional Finance Authority.

The authority is set to sell the bonds, which are due 2012 to 2031, to finance general capital expenditures for the city.

Barclays Capital Inc. will lead the syndicate selling the bonds.

Competitive offerings abound

A large number of competitive deals will dominate the week's primary market. One market insider said some issuers are required by law to sell their bonds competitively, so it could be coincidental that so many competitive sales are scheduled for the coming week.

"I don't see anything that would indicate that it's better or worse this particular week to go competitive," said the sellsider.

"It all depends upon the issuers and what works for them. Some [issuers] are required to go competitive. Others just choose it because they feel they can get the best possible rates if market conditions aren't ideal."

The largest competitive offering in the coming week comes from the State of Wisconsin, which plans to sell $428.74 million of series 2011A general obligation bonds on Wednesday.

Those bonds are due 2012 to 2031.

Proceeds will be used to construct, expand, extend, enlarge or improve land, water, property, highways, buildings, equipment or facilities for public use.

Seattle sets deal

Also coming up on the competitive calendar on Wednesday, the City of Seattle is set to bring $307.755 million of series 2011 municipal light and power improvement revenue bonds with Seattle-Northwest Securities Inc. as its financial adviser.

The offering includes $297.755 million of series 2011A improvement and refunding bonds and $10 million of series 2011B taxable new clean renewable energy revenue bonds.

The 2011A bonds are due 2011 to 2026 and from 2028 to 2036. The 2011B bonds are due Feb. 1, 2027.

Proceeds will be used to finance capacity and efficiency improvements to the city's Boundary Hydroelectric Project as well as to refund existing debt, subject to market conditions.

NYC Educational deal ahead

Coming up on Thursday, the New York City Educational Construction Fund is scheduled to price $136.375 million of series 2011A revenue bonds (Aa3) competitively.

The fund plans to use the proceeds from the sale to construct the High School for Art and Design and P.S. 59 Combined Occupancy Structure.

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