Municipals close narrowly mixed as market awaits subdued supply; NYC Transitional sells bonds

By Sheri Kasprzak

New York, March 14 – Municipals were narrowly mixed at the close of day Monday, with yields on the long end of the curve 1 basis point lower and shorter maturities either flat or 1 bp higher, traders reported.

Treasuries, meanwhile, were flat to slightly better ahead of the Federal Open Market Committee’s March meeting.

This week will feature about $7.3 billion of new offerings, down from about $8.5 billion priced last week.

NYC Transitional brings debt

It was an active day for new issues. The activity was led by the New York City Transitional Finance Authority, which priced $750 million of series 2016S-1 building aid bonds.

The bonds (//AA) are due 2017 to 2037 with term bonds due in 2040, 2043 and 2045. The serial coupons range from 2% to 5%. The 2040 bonds have a 4% coupon and priced at 105.315, the 2043 bonds have a 5% coupon and priced at 115.345, and the 2045 bonds have a 4% coupon and priced at 104.632.

Ramirez & Co. Inc. and Goldman Sachs & Co. were the senior managers with Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Rice Financial Products Co., BofA Merrill Lynch, Jefferies & Co. Inc., Raymond James/Morgan Keegan, Siebert Brandford Shank & Co. LLC, Citigroup Global Markets Inc., Loop Capital Markets LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC as the co-managers.

Proceeds will be used to pay a portion of the costs of one or more of the five-year plans.

Westchester Medical bonds sell

Elsewhere during the session, the Westchester County Local Development Corp. of New York sold $283,775,000 of series 2016 revenue bonds for the Westchester Medical Center Obligated Group.

The bonds (Baa2/BBB/) were sold through Wells Fargo.

The bonds are due 2016 to 2034 with term bonds due in 2037 and 2046. The serial coupons range from 3% to 5%. The 2037 bonds have a 3.75% coupon and priced at 97.822, and the 2046 bonds have a 5% coupon and priced at 109.646.

Proceeds will finance capital projects for the obligated group and refund its series 2010B-C revenue bonds.

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