Municipals improve; Louisiana offers G.O. and G.O. refunding bonds; pipeline fills

By Cristal Cody

Tupelo, Miss., Nov. 13 – Municipal bonds improved in trading on Thursday after a lackluster week, according to market insiders.

“They’re definitely doing better today,” a trader said. “They woke up this morning without a hangover and proceeded to pick up in sympathy with the government market.”

Treasuries ended with small gains that saw the 10-year benchmark Treasury note yield close down 1.2 basis points to 2.347%.

The State of California priced $1.2 billion of various purpose general obligation bonds (Aa3/A/A) via a competitive offering on Thursday, according to a market source. Final pricing details were not available by press time.

The deal included $270 million of federally taxable G.O. bonds, $306.21 million of tax-exempt G.O. refunding bonds and $630 million of tax-exempt G.O. bonds.

The November pipeline is filling in with several deals, though issuance in the weeks ahead is expected to be thin, sources said.

“The calendar is winding down ahead of the Thanksgiving holidays, even though it’s two weeks away,” one source said. “Next week is going to be quiet and the following week even quieter.”

Louisiana to price G.O.s

In the week ahead, the State of Louisiana intends to offer $199.99 million of G.O. bonds (Aa2/AA/AA), according to a preliminary official statement.

The deal includes $160.09 million of series 2014D-1 bonds and $39.9 million of series 2014D-2 bonds with serial maturities from 2015 through 2034.

The bonds are scheduled to price competitively on Nov. 20.

Lamont Financial Services Corp. is the financial adviser.

Proceeds will be deposited into a state escrow fund and applied to general government, veterans’ affairs, elected officials, economic development, culture, recreation and tourism, transportation, public safety and corrections, health and hospitals, natural resources, workforce, education, levee districts and ports.

The State of Louisiana also plans to price $258.18 million of G.O. refunding bonds (Aa2/AA/AA), according to a preliminary official statement.

The series 2014C bonds have serial maturities form 2019 through 2029.

J.P. Morgan Securities LLC is the bookrunner for the negotiated offering.

Proceeds from the deal will be used to advance refund all or a portion of the state’s outstanding series 2006C, series 2009A, series 2011A and series 2012A G.O. bonds.

Washington Suburban on tap

The Washington Suburban Sanitary District of Montgomery and Prince George’s counties, Md., plans to offer $250 million of second series consolidated public improvement bonds of 2014 via a competitive sale on Tuesday, according to a preliminary official statement.

The bonds (Aaa/AAA/AAA) have serial maturities from 2015 through 2044.

Public Advisory Consultants, Inc. is the financial adviser.

Proceeds will be used to fund the construction or reconstruction of water supply facilities, water supply lines and transmission mains, sewage disposal facilities, sewer collection mains and water and sewer pipes in subdivisions.

Freemont School in pipeline

Also in the week ahead, the Freemont Unified School District in Alameda County, Calif., plans to price $140 million of election of 2014 G.O. bonds, according to a preliminary official statement.

The series A bonds (Aa2/AA-/) have serial maturities from 2015 through 2046.

The bonds will be offered via a competitive sale on Tuesday.

Keygent LLC is the financial adviser.

Proceeds will be used to repair, upgrade, acquire, construct and equip school district property and facilities.

California Communities eyed

Looking ahead, the California Statewide Communities Development Authority is in the pipeline with a $163.83 million offering of refunding revenue bonds (/A/) for Huntington Memorial Hospital, according to a preliminary official statement.

The offering includes $153,335,000 of series 2014B bonds and $10,495,000 of series 2015A bonds.

Barclays will manage the negotiated offering.

Proceeds will be used to redeem outstanding bonds.

Virginia Housing to price

Also on the calendar, the Virginia Housing Development Authority intends to bring $120,389,857 of series 2014A taxable commonwealth mortgage bonds due Oct. 25, 2037 (Aaa/AAA/), according to a preliminary official statement.

The bonds will price via a negotiated offering.

BofA Merrill Lynch is the lead manager.

Proceeds from the offering will be used to redeem outstanding bonds.

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