Municipals unchanged in light session; Massachusetts preps for $1.2 billion G.O. RANs sale

By Sheri Kasprzak

New York, Sept. 14 - Municipals kicked off the week with a fairly uneventful session. A trader reached in the afternoon reported that munis were mostly unmoved in a quiet day for both the secondary and primary markets.

"It's a typical Monday," the trader said. "It's almost always dead around here."

Meanwhile, the week ahead should be extremely active for new issues - including a $1.2 billion sale of general obligation revenue anticipation notes from the Commonwealth of Massachusetts set to price Tuesday.

The commonwealth is prepared to sell the notes (MIG 1/SP-1+/F1+) competitively in three tranches.

The 2009A notes are due April 29, 2010, the 2009B notes are due May 27, 2010 and the 2009C notes are due June 24, 2010.

Proceeds will be used to fund general capital expenditures ahead of the collection of certain revenues.

Another major offering coming up Tuesday is a $729.545 million sale of series 2009D taxable G.O. Build America Bonds out of the State of Utah. The offering is part of a $1.041 billion sale. The state will bring $311.715 million in tax-exempt G.O. bonds to market Wednesday to round out the deal.

The series 2009D bonds (Aaa/AAA/) will be sold through Morgan Stanley & Co. and are due 2018 and 2024.

Proceeds will fund highway improvements and improvements to higher educational facilities throughout the state.

Secondary seen barely moved

In the secondary market Monday, a trader noted that very little was moving and the entire yield curve was basically flat.

Among the action, the taxable pension bonds recently priced by the City of Waterbury, Conn., were seen moving, the trader reported. The 7.089% 2038 bonds were seen at 6.546%.

Also trading on Monday were the Upper St. Clair Township School District of Pennsylvania's recently priced Build America Bonds. The 6.086% 2039s were seen at 5.747%.

In other trades, the M-S-R Energy Authority of California saw some interest in its series 2009A revenue bonds. Its 6.5% 2039 bonds were seen at 6.1%.

Week includes billions in sales

The Massachusetts offering is only one of several large sales planned for the week.

Coming up on Wednesday, the Missouri Highways & Transportation Commission is scheduled on Wednesday to sell $600 million in series 2009 reimbursement state road fund bonds, said a sales calendar.

The bonds (Aa2/AA+/AA+) will be sold on a negotiated basis with Merrill Lynch & Co. Inc. as the lead manager.

The sale includes $341.575 million in series 2009 federally taxable Build America Bonds and $258.425 million in series 2009 tax-exempt bonds.

Proceeds will be used to fund the state's bridge improvement program.

PANYNJ sale planned

Also on Wednesday, the Port Authority of New York and New Jersey plans to sell $300 million in 160th series consolidated bonds on Wednesday, said a notice of sale.

The bonds (Aa3//AA-) will be sold on a competitive basis.

The bonds are due 2039.

Proceeds will be used to fund capital projects.

Clark Airport System sale ahead

Also coming up this week, the Clark County Airport System in Nevada is scheduled on Thursday to sell $484 million in series 2009 airport system revenue bonds.

The bonds will be brought by Citigroup Global Markets Inc. and will be sold in two tranches: $300 million in series 2009A Build America Bonds and $184 million in series 2009B subordinate lien revenue bonds.

The 2009A bonds are due 2040, and the 2009B bonds are due 2013 to 2026.

Proceeds will be used to fund airport system improvements.

© 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.