Munis better by 2 bps to 8 bps; Tarrant Regional Water District, Baylor University plan deals

By Cristal Cody

Prospect News, Jan. 30 - Municipal bonds continued to rally in light activity on Monday, especially on the long end, according to sources.

Bonds with maturities out to 2027 through 2035 firmed as much as 8 basis points, a trader said.

The short end came in 2 bps to 5 bps.

"Very, very firm," a trader said. "They're bumping the scales 6 or 7 basis points on the long end. But it's quiet. I didn't see a whole lot of activity. The market has a good tone to it, and there's not much supply."

The main deal of the week is expected on Tuesday from the State of Washington, which will price nearly $960 million of refunding bonds in two tranches through a competitive sale.

In other upcoming bond sales, Massachusetts State College Building Authority expects to price $150.25 million of refunding revenue bonds.

Two issuers in Texas also plan to sell bonds. Tarrant Regional Water District intends to sell $134.63 million of revenue bonds, and Baylor University plans to offer $120 million of revenue bonds.

Massachusetts authority deal

Massachusetts State College Building Authority's sale includes $150.25 million of series 2012B refunding revenue bonds with serial maturities from 2018 through 2032 and term bonds due 2037 and 2043, according to a preliminary official statement.

The bonds will price through a negotiated sale managed by Bank of America Merrill Lynch, Barclays Capital Inc., J.P. Morgan Securities Inc., Fidelity Capital Markets Inc., Jefferies & Co., Morgan Keegan & Co. Inc., Ramirez & Co., Inc. and Wells Fargo Securities LLC.

Proceeds will be used to refund outstanding bonds.

Tarrant Water ahead

Tarrant Regional Water District in Texas plans to sell $134.63 million of series 2012 revenue bonds, according to a preliminary official statement.

The series 2012 bonds (Aa1/AAA/) have serial maturities from 2013 through 2042.

The bonds will price via a competitive sale on Feb. 8.

First Southwest Co. and Loop Capital Markets, LLC are co-financial advisers.

Proceeds will be used to pay for the design, acquisition and construction of the Dallas Project Component of an integrated pipeline to serve the city and district and to fund a debt service reserve fund.

Baylor University to price

Also in Texas, Baylor University plans to price $120 million of series 2012 revenue bonds (/AA-/AA-) through Waco Education Finance Corp., according to a preliminary official statement.

Barclays Capital will manage the negotiated sale.

Proceeds will be used to finance and refinance the cost of construction and improvements and to refinance a portion of $15 million of outstanding series A commercial paper notes.

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