Municipals hold steady ahead of $9 billion of new issues; Texas Transportation preps offering

By Sheri Kasprzak

New York, Jan. 20 – Municipals took a break from a recent rally to hold steady Tuesday as the market braced for another large wave of deals, market insiders said.

Yields were mostly flat with some firmness seen on the long end, said a trader in the afternoon.

Treasuries improved, with the 30-year bond yield falling by 5 basis points.

Looking to the short week, supply will be rather high with more than $9 billion of new issues expected. The slate will be led by a $1.75 billion offering of turnpike system revenue bonds from the Texas Transportation Commission.

Texas preps revenue bond deal

That Texas offering, being conducted for the Central Texas Turnpike System, will include three tranches: $225 million of series 2015A first-tier refunding put bonds (A3/A-/A-), $225 million of series 2015B first-tier revenue refunding bonds (A3/A-/A-) and $1.3 billion of series 2015C second-tier revenue refunding bonds (Baa1/BBB+/BBB).

Barclays and J.P. Morgan Securities LLC are the senior managers.

The commission plans to use the proceeds from the deal to refund its series 2002A and 2012A-B revenue bonds.

Washington deal ahead

Leading Wednesday’s competitive offerings, the State of Washington is on tap to price $1,001,305,000 of series 2015 general obligation bonds.

The offering includes $282,275,00 of series 2015B various purpose G.O. bonds, $200.63 million of series 2015C motor vehicle tax G.O. bonds, $58,205,000 of series 2015T-2 taxable bonds and $460,195,000 of series R-2015E various purpose G.O. bonds.

Proceeds will finance state capital projects and refund G.O. debt.

Health-care bonds set

A number of health-care offerings are set to price during the week. On Wednesday alone, deals are coming from Partners Healthcare System Inc. of Massachusetts (Aa3/AA/AA), Queens Health Systems of Hawaii (A1/AA-/) and Washington Health Care Facilities Authority for the Seattle Children’s Hospital (Aa2//AA).

JPMorgan is the senior manager on all of those deals.

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