Municipals hold steady ahead of $8.3 billion supply; NYC Transitional Finance preps $1 billion

By Sheri Kasprzak

New York, Oct. 19 – Municipals were unchanged ahead of a heavier new-issue slate, market insiders said. About $8.3 billion of new offerings are coming up, led by a substantial deal from the New York City Transitional Finance Authority.

“The combination of refunding and new-money issuance will increase NYCTFA’s outstanding debt to above $27 billion,” Alan Schankel, managing director with Janney Montgomery Scott LLC, noted in a note released Monday.

Elsewhere, last week saw positive fund flows, market sources reported.

The Investment Company Institute reported $558 million of inflows for the week ended Oct. 7, and Lipper showed $521 million of inflows for the week ended Oct. 14.

NYC Transitional deal set

The biggest deal of the week comes from the NYC Transitional Finance Authority, on tap Wednesday to bring $1 billion of future tax secured subordinate bonds through a syndicate of bookrunners led by J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, Loop Capital Markets LLC, Morgan Stanley & Co. LLC, Goldman Sachs & Co. and Wells Fargo Securities LLC.

The deal includes $600 million of series 2016B bonds, $350 million of series 2016C tax-exempt bonds and $50 million of series 2016D tax-exempt bonds.

Proceeds from the offering will be used to fund capital projects and refund bonds.

California tops competitives

Heading up the week’s competitive offerings, the State of California is set to price $960.96 million of series 2015 general obligation bonds (Aa3/AA-/A+).

The deal includes $105.96 million of series 2015 taxable G.O. bonds and $855 million of series 2015 tax-exempt G.O. refunding bonds.

Proceeds will be used to finance capital improvements at public facilities, including schools, as well as to refund existing bonds.

N.J. Turnpike drives deal

Rounding out the week’s top offerings, the New Jersey Turnpike Authority is set to price $750 million of series 2015E turnpike revenue bonds (A3/A+/A) on Thursday.

The bonds will be sold through Citigroup Global Markets Inc. and are due 2031 to 2034 with a term bond due in 2045.

Proceeds will be used to finance capital improvement projects.

© 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.