Municipal bonds end flat in light trading; New York City Transitional details $800 million deal

By Cristal Cody

Tupelo, Miss., July 18 – Municipal bonds ended flat on Friday with no significant primary action, according to market sources.

“It has been quiet,” a trader said. “Most things ended up not trading. The plane crash yesterday had some significance in the Treasury rally and munis rallied as well, but today was back to normal.”

Treasuries ended off their highs from Thursday on some profit taking, another trader said.

The 10-year Treasury note yield rose 5 basis points to 2.49%.

In new municipal bond issuance, the New York City Transitional Finance Authority detailed its $800 million offering of series 2015A future tax secured subordinate bonds (Aa1/AAA/AAA).

The deal included $675 million of series 2015A-1 tax-exempt bonds and $125 million of series 2015A-2 taxable bonds.

The 2015A-1 bonds are due 2016 to 2041 and priced with coupons from 3% to 5%, according to a pricing sheet. The 2015A-2 bonds are due 2020 to 2025 and were sold with coupons from 2.42% to 3.34%.

The bonds priced Thursday on a negotiated basis led by senior managers Morgan Stanley & Co. LLC; BofA Merrill Lynch; J.P. Morgan Securities LLC; Barclays; Loop Capital Markets LLC; Goldman, Sachs & Co.; and Wells Fargo Securities LLC.

Pipeline fills

Coming up in new issuance, the Louisiana Public Facilities Authority intends to bring a $163.5 million offering of revenue refunding bonds, according to a preliminary official statement.

The series 2014 hurricane recovery program bonds (Aa3//AA-) are due in 2015 and 2018 through 2027.

Raymond James/Morgan Keegan is the lead manager of the negotiated sale.

Also added to the calendar, the Washington Economic Development Finance Authority is expected to price $118,215,000 of lease revenue refunding bonds (Aa1/AA+/) for Washington Biomedical Research Properties II, according to a preliminary official statement.

The deal includes $111,755,000 of series 2014A bonds with serial maturities from 2015 through 2038 and $6.46 million of series 2014B bonds due in 2015 and 2016.

Barclays is the lead manager of the negotiated offering.

Also ahead, the Nebraska Investment Finance Authority is set to offer $100 million of single family housing revenue bonds, according to a preliminary official statement.

The deal includes $65 million of series 2014A bonds with serial maturities from 2015 through 2024 and term bonds due 2044 and $35 million of series 2014B variable-rate bonds due Sept. 1, 2038.

J.P. Morgan Securities LLC will lead manage the sale.

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