Municipals end session stronger as $7.5 billion supply ahead; Chicago eyes $2 billion deal

By Sheri Kasprzak

New York, Sept. 28 – Municipals were stronger on Monday as the amount of potential forward calendar supply increased to around $7.5 billion – a heartier slate than the market has seen in a few weeks.

Yields on top-rated municipals were lower by as much as 3 basis points, pushed in part by stronger Treasuries, market sources reported.

The yield on the 30-year Treasury bond fell by 9 bps, and the 10-year benchmark note yield fell by 7 bps.

Chicago sets airport deal

On the horizon, the City of Chicago announced plans Monday to price $1,996,185,000 of series 2015 general airport senior lien revenue bonds on behalf of the Chicago O’Hare International Airport.

The offering is comprised of $330.1 million of series 2015A AMT refunding bonds, $1,311,375,000 of series 2015B non-AMT refunding bonds, $208.45 million of series 2015C AMT revenue bonds, $124.94 million of series 2015D non-AMT revenue bonds and $21.32 million of series 2015E non-AMT refunding bonds.

The bonds will be sold on a negotiated basis with J.P. Morgan Securities LLC and Loop Capital Markets LLC as the senior managers.

The 2015A bonds are due 2016 to 2034, and the 2015B bonds are due 2016 to 2034. The 2015C bonds are due 2021 to 2035 with term bonds due in 2040 and 2046. The 2015D bonds are due 2021 to 2035 with term bonds due in 2040 and 2046. The 2015E bonds are due in 2016 and 2025.

Proceeds will be used to retire commercial paper notes and refund the airport’s series 2003A-E, 2004A, 2004C-D, 2005A and 2008A-B revenue bonds.

Washington preps sale

Heading up this week’s new offerings, the State of Washington is on tap to price $944.28 million of series 2016 general obligation bonds Wednesday.

The deal includes $497.8 million of series 2016A green bonds, $191,995,000 of series 2016B motor vehicle fuel tax bonds, $60.71 million of series 2016T taxable bonds and $193,775,000 of series R-2016A various purpose refunding bonds.

The bonds (Aa1/AA+/AA+) will be sold on a competitive basis with Montague De Rose & Associates, Piper Jaffray & Co. and Seattle-Northwest Co. as the financial advisers.

The 2016A bonds are due 2016 to 2040, and the 2016B bonds are due 2016 to 2040. The 2016T bonds are due 2016 to 2021. The series R-2016A bonds are due 2016 to 2024.

Proceeds will be used to finance state capital projects and refund existing debt.

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