Municipals mostly unchanged ahead of Veterans Day; New York Liberty brings $1.34 billion bonds

By Sheri Kasprzak

New York, Nov. 10 - Municipals closed out Thursday mostly unmoved ahead of the Veterans Day holiday on Friday, said market insiders. Little activity in the primary and the secondary markets kept yields relatively stable.

"There's not much moving us," said one trader reached during the session.

Some slight firmness was seen at 15 years where yields were seen down by more than 2 bps. Five-year yields were slightly softer by about a basis point.

Leading the action, the New York Liberty Development Corp. brought to the market $1,343,500,000 of series 2011 liberty revenue refunding bonds, said a pricing sheet.

Goldman, Sachs & Co. was the senior manager for the offering.

Deal prices in four tranches

New York Liberty's offering included $1,218,495,000 of series 2011A Three World Trade Center multimodal liberty revenue refunding bonds, $11.005 million of series 2011B Three World Trade Center multimodal liberty revenue refunding bonds, $112.965 million of series 2011A Three-Four World Trade Center multimodal liberty revenue refunding bonds and $1.035 million of series 2011B Three-Four World Trade Center multimodal liberty revenue refunding bonds.

The series 2011A Three World Trade bonds are due Dec. 1, 2049 and bear interest at 0.27% priced at par. The 2011B Three World Trade bonds are due Dec. 1, 2049 and initially bear interest at the weekly rate.

The series 2011A Three-Four World Trade bonds are due Dec. 1, 2049 and bear interest at 0.28% priced at par. The 2011B Three-Four World Trade bonds are due Dec. 1, 2049 and bear interest initially at the weekly rate.

Proceeds will be used to refund the corporation's series 2009 liberty revenue refunding bonds.

Massachusetts water bonds

In other primary action, the Massachusetts Water Resources Authority came to market on Thursday with $327.16 million of series 2011C general revenue refunding bonds, said a pricing sheet.

The bonds were sold through Bank of America Merrill Lynch.

The bonds are due 2018 and 2021 to 2032 with a term bond due in 2042. The serial coupons range from 3.125% to 5%. The 2042 bonds have a 5.25% coupon priced at 109.081.

Proceeds will be used to refund the authority's series 2002D, 2002J, 2003C and 2004A general revenue bonds.

Baltimore County deals

Looking to the week ahead, Baltimore County of Maryland is set to hit the market with two offerings.

On Tuesday, the county plans to sell $255 million of series 2011 general obligation bonds, said a preliminary official statement.

The offering includes $85 million of metropolitan district bonds and $170 million of consolidated public improvement bonds.

The metropolitan district bonds are due 2013 to 2042. The consolidated public improvement bonds are due 2013 to 2032.

On Wednesday, the county intends to price $200 million of series 2011 general obligation bond anticipation notes.

The offering is comprised of $60 million of metropolitan district BANs and $140 million of consolidated public improvement BANs.

The notes are due Dec. 17, 2012.

Both the bonds and the notes will be sold competitively with Public Resources Advisory Group as the financial adviser.

Proceeds from the bonds will be used to redeem commercial paper bond anticipation notes, which were initially issued to construct, acquire and renovate water supply, sewerage, drainage systems, waterway improvements, operational buildings, community improvements, parks and recreational facilities and elderly affordable housing.

Proceeds from the notes will be used to provide interim funding for the construction, acquisition and development of water, sewerage, drainage, public works and other infrastructure projects within the county.

Puerto Rico sales tax deal

Out on the horizon, the Puerto Rico Sales Tax Financing Corp. is expected to price $769.5 million of series 2011 sales tax revenue bonds, said a preliminary official statement.

The offering includes $400 million of series 2011A-1 bonds, $327.5 million of series 2011A-2 bonds and $42 million of series 2011B bonds.

The bonds (A1/A+/A+) will be sold on a negotiated basis.

Citigroup Global Markets Inc. is the senior manager for the 2011A bonds.

The senior manager for the 2011B bonds is Santander Securities.

Proceeds will be used to refund first subordinate and junior subordinate bonds.

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