Municipals little changed as market awaits $12.7 billion calendar; Georgia preps G.O. offering

By Sheri Kasprzak

New York, June 6 – The municipals market was mostly flat on Monday as investors await about $12.7 billion of new-issue supply, led by a massive general obligation bond sale out of Georgia, market insiders said.

The 10-year triple-A bond yield ended Monday at 1.65% and the 30-year bond yield at 2.58%.

Tuesday will feature billions in new offerings, led by a $1,367,335,000 G.O. offering from Georgia.

The state will price $717.29 million of series 2016A G.O. bonds due 2017 to 2036, $199.87 million of series 2016B taxable G.O. bonds due 2017 to 2036, $382.19 million of series 2016C G.O. refunding bonds due 2017 to 2027 and $67,985,000 of series 2016D taxable G.O. refunding bonds due 2017 to 2026.

The bonds will be sold competitively, and proceeds will finance capital projects and refund existing G.O. bonds.

American Airlines deal set

Also coming up Tuesday, the New York Transportation Development Corp. is on tap to price $850 million of special facility revenue bonds (//BB) for American Airlines Inc.

The bonds will be sold through senior manager Citigroup Global Markets Inc. and are due 2017 to 2021 with term bonds due in 2026 to 2031.

Proceeds will be used to refund the corporation’s series 2002 and 2005 special facility revenue bonds, which were issued to finance the development of Terminal 8 at JFK Airport.

L.A. County TRANs ahead

In other upcoming deals, Los Angeles County will round out Tuesday’s top three deals with its $800 million of tax and revenue anticipation notes.

The notes will be sold through Wells Fargo Securities LLC and J.P. Morgan Securities LLC and are due June 30, 2017.

Proceeds will fund capital expenditures and provide cash for the county in the coming fiscal year.

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