New issue volume to be $2.8 billion ahead of Thanksgiving; Texas Muni Gas offers $1 billion

By Sheri Kasprzak

New York, Nov. 19 - Municipals closed out the beginning of a short week on a quiet note, market sources said. Very little primary action left yields little changed, said one trader reached in the session.

"It's pretty quiet, which is how we expect it to remain until after the holiday," said the trader.

"Treasuries are having a tough go today, and we did have a mixed tone early on, but at this point, I'd call it flat."

Meanwhile, only $2.8 billion of new offerings are expected to hit the market in the week ahead of Thanksgiving, said Tom Kozlik, municipal credit analyst with Janney Montgomery Scott LLC.

"We expect total municipal market volume to be rather muted this week due to the Thanksgiving holiday," Kozlik said Monday.

New offerings will be dominated by a $1 billion deal from the Texas Municipal Gas Acquisition and Supply Corp. III.

Texas sale set

The corporation is prepared to sell series 2012 gas supply revenue bonds (A3/BBB/) through J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Citigroup Global Markets Inc.

The offering is being conducted to finance the prepayment of a 20-year natural gas supply agreement with Macquarie US Gas Supply LLC.

Two Connecticut deals ahead

Meanwhile, two of the major deals expected to price during the short week ahead come out of Connecticut.

The Connecticut Housing Finance Authority is prepared to sell $143,445,000 of series F housing mortgage program bonds through J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Bank of America Merrill Lynch and Citigroup Global Markets Inc.

The authority plans to use the proceeds from the two-tranche sale to make mortgage loans.

The deal includes $102,955,000 of series F-1 non-AMT bonds and $40.49 million of series F-2 AMT bonds.

Elsewhere, the University of Connecticut is on the calendar with $90 million of series 2012 special obligation student fee revenue refunding bonds (Aa2).

Those bonds will be sold through Jefferies & Co.

Proceeds will be used to refund the university's series 2002 and 2002A student fee revenue bonds.

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