Higher education, transportation, essential services, and Build America Bond offerings feature in the market this week as part of an estimated $5.36 billion in new volume, according to Ipreo LLC and The Bond Buyer.
This week’s activity — which will be led by a $540 million financing from the Connecticut Health and Educational Facilities Authority on behalf of Yale University — is slightly lower than last week’s revised $4.05 billion volume, according to Thomson Reuters.
The Connecticut deal will be priced on Wednesday by Barclays Capital and JPMorgan after being offered to retail investors Tuesday. A spokeswoman on Friday said underwriters and bankers were considering a structure of bonds maturing five years and out, but the details were still being hammered out.
The bonds have natural triple-A ratings from Moody’s Investors Service and Standard & Poor’s.
A two-pronged general obligation deal, meanwhile, is being planned by Hawaii and will be priced by Citi on Wednesday, following a retail order period tomorrow.
The deal, which totals $534 million, consists of $312 million of BABs maturing serially from 2015 to 2030, and $222 million of tax-exempt GOs, maturing serially from 2015 to 2020. Both series are rated Aa2 by Moody’s, AA by Standard & Poor’s, and AA by Fitch Ratings.
In the transportation sector, two deals are expected to arrive in the Far West and Southeast.
The largest is $454 million of senior airport system revenue bonds from Clark County, Nev., that are designated to be sold as BABs when Citi prices the deal tomorrow. The bonds, which are rated Aa2 by Moody’s and AA-minus by Standard & Poor’s, are structured to mature as one term bond in 2045, according to an underwriter.
Miami-Dade County will bring $247.5 million of double-barreled, GO aviation bonds to market when Morgan Stanley prices the offering on Wednesday, after a retail order period tomorrow.
The bonds, which are rated Aa3 by Moody’s and AA-minus by Standard & Poor’s, are backed by aviation revenue as a primary source, and then by the county’s full credit and taxing power. The deal is expected to save an estimated $26 million, county officials have reported. Details about the structure were not available at press time on Friday.
The bonds are being sold as part of an estimated $2 billion aviation bond authorization on behalf of Miami International Airport. This week’s offering, as well as a future sale by the county of $600 million of aviation revenue bonds designated as BABs, are expected to total $1.9 billion with combined principle and interest by 2041.
Elsewhere, California’s East Bay Municipal Utility District is on tap to sell $400 million of water system subordinate revenue bonds for water projects in Alameda and Contra Costa counties in what will be the district’s first-ever BAB sale.
A syndicate led by co-senior managers Morgan Stanley and JPMorgan will price the maiden BAB sale on Thursday with a structure that consists of a 2040 maturity and ratings of Aa2 by Moody’s, AAA from Standard & Poor’s, and AA from Fitch.
In the competitive market, a two-pronged public facilities revenue offering from the Virginia Public Building Authority totaling $317.2 million is expected to be offered on Wednesday when bidders can either bid on the bonds as tax-exempt debt or BABs.
The larger series consists of $256.7 million of public facilities revenue bonds maturing from 2016 to 2030, while another $60.5 million of debt will mature from 2011 to 2015.
