This week’s largest financings include deals in the health care, transportation, and environmental sectors that are expected to price as part of an estimated $5.44 billion in volume, according to Ipreo LLC and The Bond Buyer.
Last week, the market saw a revised $7.41 billion in total new competitive and negotiated deals price, according to Thomson Reuters.
Clark County, Nev., will market a two-pronged airport financing totaling $800 million on behalf of Las Vegas’ McCarran International Airport in what will be this week’s largest negotiated sale.
Citi is expected to price the debt on Thursday, following a retail order period scheduled for Wednesday. The structure of the issue was not yet finalized, a source at Citi said on Friday.
The larger portion of the deal consists of $450 million of senior-lien passenger facility charge revenue bonds, and another $350 million of subordinate-lien airport system revenue bonds.
Both portions are rated Aa3 by Moody’s Investors Service and A-plus by Standard & Poor’s. The deal includes all new-money tax-exempt bonds.
In the health care sector, the Hall County and Gainesville, Ga., Hospital Authority will issue $630 million of revenue bonds on Wednesday in a negotiated deal led by Bank of America Merrill Lynch.
The bulk of the issue, which will benefit Northeast Georgia Health System Inc., is rated A by Fitch Ratings. Fitch rates the $250 million Series 2010B bonds A-plus because they are additionally secured by Hall County should revenue be insufficient to meet debt service. The structure of the deal was still being hammered out at press time on Friday.
Last week, the largest offering priced was $793.2 million of general obligation bonds from Chicago.
The final 2030 maturity in the $401.9 million Series A refunding portion carried a 5% coupon that was priced to yield 4.41%, 65 basis points higher than the generic triple-A GO bonds in 2030 at the time of the pricing, according to Municipal Market Data.
The 2030 maturity is rated Aa3 by Moody’s, AAA by Standard & Poor’s, and AA by Fitch.
This week, the San Diego County Water Authority’s $639 million revenue offering is expected to be priced on Thursday after a retail order period on Wednesday.
Though the structure for the $537 million series of Build America Bonds was still being discussed late last week, the underwriter confirmed that the $102 million tax-exempt series will consist of serial bonds maturing from 2011 to 2026 that are rated Aa3 by Moody’s, AA-plus by Standard & Poor’s, and AA by Fitch.
In the Northeast, the New York State Environmental Facilities Corp. is planning $327.1 million of subordinate-lien clean water and drinking water revolving fund revenue bonds on behalf of New York City Municipal Water Finance Authority projects.
The deal, expected to be priced by Siebert, Brandford Shank & Co. on Wednesday, is structured to include $141.1 million of Series A tax-exempt bonds and $185 million of Series B federally taxable BABs.
Nearby in the Garden State, the New Jersey Educational Facilities Authority will issue $250 million of revenue bonds on behalf of Princeton University in the competitive market, including a serial structure of bonds maturing from 2012 to 2040.
The bonds have natural triple-A ratings from Moody’s and Standard & Poor’s. The proceeds will finance the construction and renovation of utility systems, roads, parking, and academic, administrative, or student-related facilities, as well as the purchase of equipment at the main Princeton campus, as well as at its Plainsboro and West Windsor campuses.
