Municipals close out quiet Friday flat; New York State prepares $830.85 million G.O. sale

By Sheri Kasprzak

New York, March 18 - Municipals rounded out the week mostly flat amid quiet trading activity, said market insiders. The week ahead will provide more offerings than previous weeks, possibly giving the market some direction, especially if Chicago O'Hare International Airport brings its stalled $1 billion bond sale.

"There's nothing going on," said one trader reached during the session.

"Nothing really to push the market. Next week, we're going to see more [new issues].

"If the Chicago deal goes, it will probably give some pricing direction for other similarly rated bonds."

Chicago is rated A2 by Moody's, A- by Standard & Poor's and A- by Fitch.

Alan Schankel, managing director with Janney Montgomery Scott LLC, said Friday that American Airlines and United Airlines have reached an agreement with the airport regarding the scope of the airport's expansion project. That issue is what grounded the sale back in February.

New York sets sale

Another major offering is on the horizon for the week. The State of New York is prepared to bring $830.845 million of series 2011 general obligation bonds on Tuesday.

The state intends to price $478.915 million of series 2011A tax-exempt bonds, $21.825 million of series 2011B taxable bonds, $231.9 million of series 2011C tax-exempt refunding bonds and $98.205 million of series 2011D taxable refunding bonds competitively.

Proceeds will be used to finance environmental initiatives and other capital expenditures and to refund debt.

NYC water to price

Another Empire State issuer for the week ahead is the New York City Municipal Water Finance Authority, which is expected to come to market with $400 million of series 2011GG water and sewer system second general resolution revenue bonds through M.R. Beal & Co.

The bonds are due 2012 to 2026.

Proceeds will be used to construct, acquire and expand the city's water and sewer system.

Massachusetts deal ahead

Also in the coming week, the Commonwealth of Massachusetts will bring to market $438.525 million of series 2011 G.O. bonds. The sale is scheduled for Wednesday, said a preliminary official statement.

The deal includes $78.525 million of series 2011B G.O. bonds and $360 million of series 2011A consolidated loan G.O. bonds.

The bonds will be sold on a negotiated basis with Siebert Brandford Shank & Co. LLC as the senior manager.

The 2011B bonds are due 2012 to 2021, and the 2011A bonds are due 2022 to 2029.

Proceeds will be used to reimburse the commonwealth for a variety of capital expenditures.

PANYNJ preps deal

The Port Authority of New York and New Jersey is also on the calendar Wednesday to price its $225 million of 167th series consolidated bonds, said a preliminary official statement.

The bonds will be sold competitively.

The bonds are due 2012 to 2028.

Proceeds will be used to refund the authority's existing versatile structure obligations and its series A commercial paper notes.

© 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.