Munis mostly flat; week expected to total $6 billion; California's $5.5 billion RANs ahead

By Sheri Kasprzak

New York, Aug. 12 - Municipals remained unchanged to kick off a week that should be a bit quieter than recent weeks, market insiders said.

Trading remained very light during the day, and even with Treasuries weakening late in the session, municipals didn't move much.

"There's little trading, and supply this week will be fairly light," a trader said. "We might be heading into the summer doldrums."

About $6 billion of new offerings are coming during the week, said Tom Kozlik, municipal credit analyst with Janney Montgomery Scott LLC.

In broad market news, state tax revenues grew 8.6% during the first quarter of 2013 year over year, said a report released by the Rockefeller Institute of Government. The growth stems mainly from personal income tax gains from anticipated federal tax law changes.

California RANs ahead

Heading up the week's short-term offerings, the State of California will hit the market with $5.5 billion of series 2013-14 revenue anticipation notes (MIG 1/SP-1+/F1+) through J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and De La Rosa & Co.

The notes are due in 2014, and proceeds from the offering will be used to finance capital needs for the state for the coming fiscal year.

Another short-term note deal during the week will come from the Erie County Fiscal Stability Authority of New York, which plans to price $167,005,000 of series 2013 bond anticipation notes.

Roosevelt & Cross Inc. and Ramirez & Co. Inc. will sell the notes.

The offering includes $129,305,000 of series 2013A BANs and $37.7 million of series 2013C sales tax and state aide secured bonds.

The BANs are due July 31, 2014, and the bonds are due 2014 to 2023.

Proceeds will finance capital outlay expenses for the authority.

Dallas/Fort Worth deal set

Also coming up during the week, the Dallas/Fort Worth International Airport plans to price $680.98 million of series 2013 joint revenue refunding bonds (A2) in two tranches.

The deal includes $428.35 million of series 2013E AMT bonds and $252.63 million of series 2013F non-AMT bonds.

The bonds will be sold through Citigroup Global Markets Inc.

Proceeds will be used to refund existing airport revenue debt.

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