Municipals little changed as large number of deals price; Miami-Dade brings aviation offering

By Sheri Kasprzak

New York, Dec. 3 – Municipals rounded out a busy session on a mixed note. Longer bonds were seen firmer while short bonds struggled, traders reported.

Yields outside of 20 years were seen lower by about a basis point, said one trader in the late afternoon. Around five years, yields were higher by 3 bps, with the five-year AAA muni yield ending at 1.20%.

Treasuries also closed the day mixed with shorter bonds experiencing weakness even as long bonds improved.

It was another busy day for the primary market with secondary taking a backseat, said a trader.

Miami-Dade airport bonds sold

Among those new issues was a $766,155,000 offering of series 2014 aviation revenue refunding bonds from Miami-Dade County, Fla.

The deal included $602.34 million of series 2014A AMT bonds and $163,815,000 of series 2014B non-AMT bonds.

The 2014A bonds are due 2015 to 2036 with 1% to 5% coupons and 0.25% to 3.77% yields.

The 2014B bonds are due 2015 to 2034 with a term bond due in 2037. The serial coupons range from 1% to 5% with yields from 0.2% to 3.36%. The 2037 bonds have a 5% coupon priced at 112.778 to yield 3.45%.

The bonds (/A/A) were sold through Wells Fargo Securities LLC.

Proceeds will be used to refund the county’s series 2002A, 2003A, 2004A-B, 2005C and 2007D aviation revenue bonds.

New York thruway deal prices

Another major offering came from the New York State Thruway Authority, which sold $715,665,000 of series K general revenue refunding bonds. The deal was downsized from $750 million.

The bonds (A2/A/) were sold through Goldman Sachs & Co. and Ramirez & Co. Inc.

The bonds are due 2019 to 2032 with 3% to 5% coupons.

Proceeds will be used to refund existing debt.

Urban development deal detailed

The details of one of the week’s largest deals were revealed Wednesday. The New York State Urban Development Corp. released the particulars of its $1,306,710,000 of series 2014 state personal income tax revenue bonds.

The deal included $423.99 million of series 2014A group A tax-exempt bonds, $510,975,000 of series 2014A group B taxable bonds and $371,745,000 of series 2014B taxable bonds, according to a term sheet.

The 2014A group A bonds are due 2016 to 2024 with 4% to 5% coupons and 0.28% to 2.2% yields.

The 2014A group B bonds are due 2025 to 2036 with a term bond due in 2044. The serial bonds have 5% coupons with yields from 2.36% to 3.09%. The 2044 bonds have a 5% coupon priced at 113.356 to yield 3.31%.

The 2014B bonds are due 2016 to 2024 with 0.63% to 3.08% yields, all priced at par.

The bonds (/AAA/AA+) were sold competitively.

Proceeds will be used to finance highway and bridge, correctional system, housing, economic development and state facilities projects, as well as to refund the corporation’s series 2005A-1 economic development and housing, series 2007A economic development and housing, series 2005B state facilities, series 2005A economic development and housing, series 2006A economic development and housing, series 2007A economic development and housing, series 2005A transportation and series 2006A transportation state personal income tax bonds.

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