Municipals mixed; Florida prices $195.9 million; Dasny, New York Mortgage Agency in pipeline

By Cristal Cody

Tupelo, Miss., Oct. 6 – Municipal bonds traded mostly flat to about 2 basis points weaker on the long end on Tuesday, while several issues priced, market sources said.

Treasuries improved over the day, while equities were mixed. The benchmark 10-year note yield declined 3 basis points to 2.01%. The 30-year bond yield closed the day down 3 bps at 2.85%.

In new municipal bond supply, details emerged on the Florida Department of Transportation’s $195,875,000 offering of turnpike revenue refunding bonds.

Looking ahead, the Dormitory Authority of the State of New York is marketing $951,245,000 of state sales tax revenue bonds.

Also in New York, the New York Mortgage Agency plans to price $135,535,000 of mortgage revenue bonds.

Florida prices $195.88 million

The State of Florida Department of Transportation sold $195,875,000 of turnpike revenue refunding bonds, according to a market source and a pricing sheet.

The series 2015B bonds (Aa3//AA-) have serial maturities from 2017 through 2036 and priced with coupons from 5% on the short end to 3% and 4% on the longer end of the offering.

Yields ranged from 0.58% to 3.56%.

BofA Merrill Lynch was the winning bidder in the competitive offering.

Proceeds from the deal will be used to refund all or a portion of the outstanding series 2007A Department of Transportation turnpike revenue bonds.

Dasny preps deal

Coming up later in October, Dasny plans to price $951,245,000 of state sales tax revenue bonds, according to a preliminary official statement.

The series 2015B bonds (/AAA/AA+) will price competitively on Oct. 13.

Public Resources Advisory Group, Inc. is the financial adviser on the sale.

Proceeds from the offering will be used to finance or reimburse a portion of the costs of state programs and projects.

New York Mortgage ahead

In other primary action expected, the State of New York Mortgage Agency expects to print $135,535,000 of mortgage revenue bonds, according to a preliminary official statement.

The deal includes $75.18 million of series Fifty-First bonds, $40,355,000 of series Fifth-Second bonds and $20 million of series Fifty-Third bonds.

The series Fifty-First bonds have maturities from 2023 through 2026 and term bonds due 2030, 2035, 2040 and 2045.

The series Fifty-Second bonds are due 2018 through 2020 and have a term bond due 2030.

The series Fifty-Third bonds have maturities from 2016 through 2023.

The bonds will be offered through a negotiated sale.

J.P. Morgan Securities LLC is the bookrunner. The co-managers are BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Academy Securities Inc., Drexel Hamilton LLC, Loop Capital Markets LLC, Ramirez & Co., Inc. and Siebert Brandford Shank & Co., LLC.

Proceeds will be used to purchase recently originated mortgage loans financed on a temporary basis with agency funds and to purchase new mortgage loans and other debt.

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