Intermediate to long bonds close out week softer; New York Liberty to price $1.25 billion

By Sheri Kasprzak

New York, Oct. 28 - Although shorter maturities rounded out the week largely unchanged, the middle and long portions of the curve suffered a bit of softness, market insiders reported.

Thirty-year yields were up more than 3 basis points, while 15-year and 10-year yields were up more than 2 bps.

"There's not a significant amount of movement; we're really just waiting to see what happens next week," said one trader reached during the session.

"We might have a little bit of supply pressure still from the volume [of the past week]."

Meanwhile, Alan Schankel, managing director with Janney Montgomery Scott LLC, said Friday that municipals are improving thanks to economic data and European economic news.

"Like corporate bonds, munis benefitted somewhat from stronger domestic economic reports and good news from Europe," said Schankel.

"Next week's new issue calendar lists about $7.5 billion in new loans, topped by New York Liberty Development Corp. with $1.2 billion."

New York Liberty leads deals

As Schankel noted, that $1.25 billion offering from New York Liberty Development will lead primary action for the week ahead.

The corporation is slated to sell series 2011 liberty revenue bonds (/A+/) through Goldman Sachs & Co. and J.P. Morgan Securities LLC.

The bonds are due Nov. 15, 2031, Nov. 15, 2041 and Nov. 15, 2051.

Proceeds will be used to construct Tower 4 of the World Trade Center, a 64-floor building for office and retail space.

The offering is one of two that are slated to price in the near future. The corporation also announced on Friday that it plans to price $1.344 billion of series 2011 liberty revenue refunding bonds.

The deal includes $1.218 billion of series 2011A 3 World Trade Center multi-modal liberty revenue refunding bonds, $11.95 million of series 2011B 3 World Trade Center multi-modal liberty revenue refunding bonds, $112.89 million of series 2011A 3-4 World Trade Center multi-modal liberty revenue refunding bonds and $1.11 million of series 2011B 3-4 World Trade Center multi-modal liberty revenue refunding bonds, said preliminary official statements.

The bonds, which are due Dec. 1, 2049, will be sold on a negotiated basis with Goldman Sachs as the lead manager.

Proceeds will be used to refund the corporation's series 2009 bonds, which were issued to fund the construction of Tower 3 of the World Trade Center.

Catholic Health Care prices

In light primary activity Friday, Catholic Health Care West brought $478.265 million of series 2011 revenue bonds, said a pricing sheet.

The deal included $350.005 million of series 2011A bonds sold through the California Health Facilities Financing Authority and $68.26 million of series 2011B-1 and $60 million of series 2011B-2 revenue bonds sold through the Arizona Health Facilities Authority.

The bonds (/A/A+) were offered through J.P. Morgan Securities LLC.

The 2011A bonds are due 2013 to 2028 with a term bond due in 2041. The serial coupons range from 3% to 5.25%. The 2041 bonds have a 5.25% coupon and priced at 98.52. The 2011B-1 bonds are due March 1, 2039, have a 5.25% coupon and priced at 97.862. The 2011B-2 bonds are due March 1, 2041, have a 5% coupon and priced at 97.

Proceeds will be used to finance and refinance capital projects at Catholic Health Care West facilities in California and Arizona.

© 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.