Municipals end short session flat ahead of Memorial Day; New York City readies G.O. bond sale

By Sheri Kasprzak

New York, May 22 – Municipals were flat on the day Friday in a short session ahead of Monday’s Memorial Day holiday, market insiders said.

The 10-year triple-A bond yield remained at 2.30%, and the 30-year yield held steady at 3.28%.

New-issue action will be more subdued in the week ahead given the holiday, but the primary market will feature a few decent-sized deals.

Pennsylvania set offering

The deal of the week comes from Pennsylvania, which is on tap to price $1,237,230,000 of series 2015 general obligation bonds on Wednesday.

The deal includes $460 million of second series 2015 bonds and $777.23 million of first refunding series 2015 bonds.

The bonds will price competitively.

Proceeds will be used to fund the construction, acquisition and rehabilitation of capital facilities projects, capital highway and bridge projects, environmental maintenance and protection, open space and farmland preservation and watershed protection and to refund outstanding bonds.

St. Paul Housing bonds ahead

The Saint Paul Housing and Redevelopment Authority is also in the market during the coming week with a $493,645,000 offering of HealthPartners Inc. obligated group health-care facilities revenue refunding bonds (A2/A/).

The bonds will price Thursday through Piper Jaffray & Co. and Wells Fargo Securities LLC.

The deal includes $302.18 million of series 2015A tax-exempt bonds and $191,465,000 of series 2015B taxable bonds.

Proceeds from the sale will be used to refund the obligated group’s series 2006, 2008C and 2009 revenue bonds.

New York City plans deal

Looking ahead, the City of New York is set to come to market with $600 million of series 2015F general obligation bonds on June 2.

The offering includes $300 million of series 2015F-1 bonds, $105 million of series 2015F-2 taxable bonds and $195 million of series 2015F-3 taxable bonds.

The bonds will be sold on a negotiated basis with J.P. Morgan Securities LLC as the lead bookrunner. The co-senior managers are BofA Merrill Lynch, Citigroup Global Market Inc., Jefferies & Co., Morgan Stanley & Co. LLC and Siebert Brandford Shank & Co. LLC.

The 2015F-1 bonds are due 2017 to 2037. The 2015F-2 and 2015F-3 bonds are due 2018 to 2032.

Proceeds will be used for capital purposes.

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