Municipals end week on firmer note; California State Public Works brings $631.54 million bonds

By Sheri Kasprzak

New York, Nov. 15 - Municipals were better again on Friday as the market awaited a large offering from Jefferson County, Ala.

Municipal yields fell by 1 basis point to 2 bps on the session, a trader said during the afternoon.

"We're following Treasuries for the most part," the trader said early in the session. Treasuries weakened later in the day.

"We're really looking to this new crop of deals [next week], particularly Jefferson County."

It's been a deal that's been on the radar for a few weeks. The ratings agencies claim that the troubled county's warrants, slated to price in the week ahead, no longer face the same issues that led the county into bankruptcy.

The county plans to price the sewer revenue warrants in six tranches through lead manager Citigroup Global Markets Inc.

Proceeds from the deal will be used to refund and retire existing sewer revenue bonds and to pay past-due debt service on those refunded bonds.

A retail order period was conducted for the offering on Friday.

California buys green bonds

Also during the session, the California treasurer's office announced that the state purchased $50 million of World Bank green bonds. The bonds are used to finance environmental projects, including energy efficiency, renewable energy, transportation, water management, waste management and other projects in 19 countries.

The state will receive a 0.68% yield on the bonds, which are due in November 2016, said a statement from treasurer Bill Lockyer's office.

The bonds were purchased with the state's pooled money investment account, according to the statement.

The purchase is the office's fourth. The purchases total $850 million with an average 0.55% yield.

"These bonds are a sound investment for California and its taxpayers," Lockyer said in the statement.

"We're earning an excellent return, strengthening our portfolio and making an important contribution to the fight against global warming."

California Public Works prices

Among the larger offerings of the week, the California State Public Works Board priced $631,535,000 of series 2013I lease revenue bonds.

The bonds (A2/A-/A-) were sold through RBC Capital Markets LLC and Goldman Sachs & Co. with Blaylock Robert Van LLC as the co-senior manager.

The bonds are due 2016 to 2033 with a term bond due in 2038. The serial coupons range from 3% to 5.5% with 0.76% to 4.87% yields. The 2038 bonds have a 5% coupon and priced at 98.733 to yield 5.09%, said a pricing sheet.

Proceeds will be used to finance a new animal health and food safety laboratory and the construction of a new courthouse in San Diego.

PANYNJ preps $1.5 billion deal

Looking ahead, the Port Authority of New York and New Jersey announced its plans Friday to sell $1,513,575,000 of consolidated bonds.

The offering includes $483.44 million of series 178 consolidated bonds, $922.74 million of series 179 consolidated bonds and $107,395,000 of series 180 consolidated bonds, said a preliminary official statement.

The bonds will be sold on a negotiated basis with Wells Fargo Securities LLC as the senior manager.

The series 178 bonds are due 2014 to 2033 with term bonds due in 2038 and 2043.

The series 179 bonds are due 2014 to 2033 with term bonds due in 2038 and 2043.

The series 180 bonds are due 2014 to 2021.

Proceeds will be used to refund the authority's series 133 consolidated bonds.

© 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.