Munis close out stronger; California Department of Water Resources brings $959.57 million

By Sheri Kasprzak

New York, Aug. 17 - Municipals ended a busy session for new issues on a positive note, with yields seen better by 1 basis point to 5 bps, said traders reached during the afternoon.

Some solid interest in offerings from the retail sector is helping yields, said one trader, even as investors shy away from the secondary market.

The trader reported that very little was trading on Wednesday but that retail interest in the current crop of new offerings seemed to be pushing the market along.

Seven-year yields were seen down 5 bps. Longer and shorter bonds were seen improved but not by as much.

Meanwhile, the market is still waiting for the pricing of the week's largest deal: a $1.021 billion sale of series 2011 revenue bonds from the Indiana Finance Authority, which should price for institutions on Thursday.

"We'll see what happens," said one trader of the Indiana deal.

"So far, it seems to be getting a good reception [from retail]. Pricing is pretty solid. I expect it to set the tone for tomorrow [Thursday]."

The offering includes $698.89 million of series 2011A first-lien bonds, $274.2 million of series 2011B second-lien bonds and $47.91 million of series 2011C second-lien bonds.

Morgan Stanley & Co. LLC is the lead manager.

Proceeds will be used to acquire a wastewater system from Citizens Energy Group and to make upgrades to the wastewater system.

California water deal prices

Heading up Wednesday's primary action, the California Department of Water Resources priced $959.565 million of series N power supply revenue bonds, said a pricing sheet. The offering was downsized from $1 billion.

The bonds (//AA-) were sold through senior managers Morgan Stanley and De La Rosa & Co.

The bonds are due 2013, 2015 and 2018 to 2021 with 3% to 5% coupons.

Proceeds will be used to repay the department's series 2002A fixed-rate bonds and outstanding variable-rate bonds.

Louisville sewer deal completed

Elsewhere, the Louisville and Jefferson County Metropolitan Sewer District of Kentucky hit the competitive market Wednesday with $263.36 million of series 2011A sewer and drainage system revenue bonds, said a pricing sheet.

Wells Fargo Securities LLC won the competitive bid for the bonds (Aa3/AA-/AA-).

The bonds are due 2012 to 2028 and 2030 to 2034 with 3% to 5% coupons.

Proceeds will be used to refund the district's series 1998A and 2001A sewage and drainage system revenue bonds.

Dallas-Fort Worth bonds fly

Also during the session, the Cities of Dallas and Fort Worth priced $221.75 million of series 2011D joint revenue refunding bonds for the Dallas-Fort Worth International Airport, said a pricing sheet.

The bonds (A1/A+/A+) were sold through M.R. Beal & Co.

The bonds are due 2012 to 2032 with a term bond due in 2035. The serial coupons range from 2% to 5%. The 2035 bonds have a 5% coupon.

Proceeds will be used to refund the outstanding series 2001A joint revenue and improvement refunding 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.