Muni yields drop along with Treasuries; New York Liberty Development to price $1.25 billion

By Sheri Kasprzak

New York, Oct. 31 - The middle of the municipal yield curve was firmer on Monday to keep pace with improving Treasuries, market insiders reported.

Five- and seven-year bonds were down more than 2 basis points, and 10-year municipal yields were down almost 2 bps. Thirty-year bonds saw some weakness, with yields up more than 2 bps.

The rest of the curve was relatively unchanged.

With little going on in the market Monday, traders noted that municipals seemed to be following along with Treasuries.

"There's really not enough happening to push us," said one trader.

"There will be plenty during the week, but we're waiting for that supply."

And there should be plenty of supply ahead. Tom Kozlik, municipal credit analyst with Janney Montgomery Scott LLC, reported Monday that about $8 billion of new issues is expected, led by a $1.25 billion sale from the New York Liberty Development Corp.

The corporation is prepared to bring the liberty revenue bonds (/A+/) via Goldman Sachs & Co. and J.P. Morgan Securities LLC.

The bonds are due Nov. 15, 2031, Nov. 1, 2041 and Nov. 15, 2051.

Proceeds will be used to construct Tower 4 of the World Trade Center, a 64-floor building for office and retail space.

Connecticut preps offering

The New York deal is just one of many major offerings in the works for the week ahead. The State of Connecticut is prepared to come to market with $715 million of series 2011 general obligation bonds through JPMorgan.

The offering includes $550 million of series 2011D G.O. bonds and $165 million of series 2011E G.O. refunding bonds.

Proceeds will be used to fund capital projects and refund the state's series 2001E bonds.

North Texas deal set

Also during the week, the North Texas Tollway Authority is prepared to bring $673.72 million of series 2011 special projects system revenue bonds through JPMorgan.

The bonds (/AA/AA-) are due 2019 to 2033.

Proceeds will fund the construction and development of the Chisholm Trail Parkway in Fort Worth and Cleburne.

New York's MTA to sell debt

Coming up on Wednesday, the Metropolitan Transportation Authority of New York will bring $443.5 million of series 2011C transportation revenue refunding bonds.

Goldman Sachs and Jefferson Securities Inc. are the senior managers.

Proceeds will be used to refund all or a portion of the authority's series 2004A certificates of participation.

Georgia plans G.O. offering

Down South, the State of Georgia is scheduled to come to market Tuesday with $400.825 million of series 2011 G.O. bonds (Aaa/AAA/AAA), said a preliminary official statement.

The deal includes $38.8 million of series 2011H G.O. bonds, $208.2 million of series 2011I G.O. bonds, $64.66 million of series 2011J-1 G.O. refunding bonds and $89.165 million of series 2011J-2 G.O. refunding bonds.

The bonds will be sold competitively with Public Resources Advisory Group as the financial adviser.

The 2011H bonds are due 2012 to 2016. The 2011I bonds are due 2012 to 2031. The 2011J-1 bonds are due 2017 and 2021 to 2023, and the 2011J-2 bonds are due 2017 to 2022.

Proceeds will be used to acquire, construct, develop, extend, enlarge or improve land, waters, property, highways, buildings, structures, equipment or facilities within the state for educational facilities for county and independent school systems, public libraries, counties, municipalities and library boards, as well as other public entities. The rest will be used to refund existing G.O. debt.

Minnesota tobacco bonds ahead

Looking out on the horizon, the Tobacco Securitization Authority of Minnesota plans to bring to market $787.57 million of series 2011 Minnesota tobacco settlement revenue bonds, said a preliminary official statement.

The offering includes $81.075 million of series 2011A taxable bonds and $706.495 million of series 2011B tax-exempt bonds.

The bonds (/A/BBB+) will be sold on a negotiated basis with Barclays Capital Inc. as the senior manager.

The 2011A bonds are due 2014 to 2015, and the 2011B bonds are due 2016 to 2026 with a term bond due in 2031.

Proceeds will be used to refund existing Minnesota tobacco settlement bonds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.