Municipals close flat to firmer ahead of another big calendar; Honolulu plans G.O. bond sale

By Sheri Kasprzak

New York, March 13 – Municipals were flat to slightly firmer on the session Friday ahead of another major new-issue slate, insiders said.

The five-year and 10-year yields were lower by 1 basis point at 1.44% and 2.21%, respectively, and the 30-year yield remained flat at 3.17%.

Meanwhile, anticipation over next week’s Federal Open Market Committee sent some Treasury yields higher by about 1 bp.

The calendar for the week ahead will be far lighter but still brisk at $8.6 billion, said one market insider.

Honolulu leads slate

Headlining the week’s offerings will be a general obligation sale from the City of Honolulu. The city is set to price $878,805,000 of series 2015 G.O. bonds.

The deal includes $375,675,000 of series 2015A tax-exempt bonds, $212.49 million of series 2015B tax-exempt bonds, $240.6 million of series 2015C tax-exempt bonds, $27.98 million of series 2015D tax-exempt bonds and $22.06 million of series 2015E taxable bonds.

The bonds will be sold through BofA Merrill Lynch and Piper Jaffray.

Proceeds will finance capital improvements, refund G.O. commercial paper notes and refund the city’s series 2005B-E, 2007A, 2009A and 2011A G.O. bonds.

Dallas arranges deal

Looking to Thursday’s primary action, the City of Dallas is on tap to price $578.58 million of waterworks and sewer revenue refunding bonds (Aa1/AAA/) through Cabrera Capital Markets LLC.

The offering includes $452,785,000 of series 2015A bonds and $125,795,000 of series 2015B taxable bonds.

Proceeds will be used to refund the city’s series 2007, 2008, 2010 and 2011 waterworks and sewer revenue bonds.

Two for McLaren ahead

On Wednesday, there will be two offerings for McLaren Health Care of Michigan, including a $95,275,000 offering of series 2015C taxable bonds (Aa3//AA-) through J.P. Morgan Securities LLC and $311.6 million of series 2015 hospital revenue refunding bonds (Aa3//AA-) through the Michigan Finance Authority.

The Michigan Finance bonds will be offered through JPMorgan, and proceeds will be used to refund the corporation’s series 2005C and 2008A bonds. The McLaren Health bonds will be used to refund its series 2008A revenue bonds.

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