Municipals end little changed ahead of $8 billion calendar; New Jersey, California debt on tap

By Sheri Kasprzak

New York, April 21 - Municipals were mostly flat, market sources reported, even as intermediate-to-long Treasuries weakened somewhat.

New-issue volume will pick up dramatically this week, with some lower-rated offerings giving yield-seekers something to sink their teeth into.

New deals total $8 billion

The week will offer more supply than in recent weeks with about $8 billion on tap. This marks the largest slate of deals since Puerto Rico's $3.5 billion general obligation offering hit the market back in early March.

"Following weeks of low supply, the municipal market is poised for some action," said Alan Schankel, managing director with Janney Montgomery Scott LLC.

The deals coming ahead are of higher quality, said Schankel. Even so, the slate includes the only two states with single A ratings.

Coming up on Tuesday, the State of California will offer $750 million of series 2014 various purpose G.O. bonds (A1/A/A) competitively.

That deal includes $575 million of tax-exempt bonds and $175 million of taxable bonds.

Proceeds from the deal will be used to finance statewide capital projects and repay commercial paper.

The State of Illinois is set to price $750 million of series of May 2014 G.O. bonds (A3/A-/A-) through Wells Fargo Securities LLC during the week.

The bonds are due 2015 to 2039, and proceeds will be used to finance capital projects under the state's Illinois Jobs Now! program.

New Jersey authority to price

The New Jersey Economic Development Authority (A1/A/A+) will offer up $1,085,000,000 of school facilities bonds on Wednesday and Thursday. The ratings are notched a step off the state's Aa3/A+/AA- G.O. bond ratings, reflecting the fact that the state's backing is subject to legislative appropriation.

The bonds will be offered through BofA Merrill Lynch concurrent with a $950 million direct private placement.

The offering includes $400 million of series 2014PP refunding bonds, $625 million of series 2014QQ taxable refunding bonds and $60 million of series 2014RR school construction bonds.

Proceeds will be used to finance school construction projects and refund existing school debt.

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