Amid Flatness, Citi Prices $850M for Port

The municipal market was mostly flat Tuesday amid light to moderate secondary trading activity as participants focused on the primary.

“There are some bits and pieces trading,” a trader in New York said. “There’s a pretty decent new-­issue calendar this week, and that’s where the bulk of the interest is going to be focused. We saw sort of the start of that today. Overall though, we’re just flat.”

In the new-issue market Tuesday, Citi priced $850 million of taxable debt for the Port Authority of New York and New Jersey in two series.

Each of the two $425 million series mature in 2040 and were priced to yield 175 basis points over the 30-year Treasury yield. None of the bonds were callable.

The credit is rated Aa2 by Moody’s Investors Service and AA-minus by Standard & Poor’s and Fitch Ratings.

JPMorgan priced $511.1 million of New York Health and Hospitals Corp. Series 2010A health system revenue bonds, after being offered to retail investors Monday.

The bonds mature in 2011 and from 2013 through 2025, with a split-term maturity in 2030.

Yields during the retail order period ranged from 1.32% with a 2% coupon in 2013 to 4.26% with a 5% coupon in 2030. Bonds maturing in 2011 were decided via sealed bid.

The bonds, which are callable at par in 2020, are rated Aa3 by Moody’s and A-plus by Standard & Poor’s and Fitch.

The Municipal Market Data’s triple-A scale yielded 2.36% in 10 years Tuesday, matching Monday, while the 20-year scale remained flat at 3.36%. The scale for 30-year debt was unchanged at a 3.77% yield.

“Secondary activity is somewhat limited, but there are trades getting done,” a trader in Los Angeles said. “I’m not sure that there’s any change in the scale.”

Tuesday’s triple-A muni scale in 10 years was at 95.5% of comparable Treasuries and 30-year munis were at 96.7%, according to MMD, while 30-year tax-exempt triple-A general obligation bonds were at 107.4% of the comparable London Interbank Offered Rate.

The Treasury market was mostly firmer Tuesday. The benchmark 10-year note finished at 2.48% after opening at 2.51%.

The 30-year bond finished at 3.91% after opening at 3.95%. The two-year note finished at 0.37% after also opening at 0.37%.

Elsewhere in the new-issue market Tuesday, Goldman, Sachs & Co. priced $247.5 million of taxable and tax-exempt debt for the Washington Convention and Sports Authority.

Bonds from a $90 million series of taxable recovery zone economic developments bonds mature in 2015, 2025, 2030 and 2039. The bonds were priced to yield between 200 and 287.5 basis points over the corresponding Treasury yields. The bonds are callable at par in 2020.

Bonds from an $18.4 million series of taxable Build America Bonds mature from 2015 through 2021. The bonds were priced to yield between 190 and 235 basis points over the corresponding Treasury yields. They are callable at par in 2020.

Bonds from a $72.5 million series of taxable senior-lien dedicated tax revenue and refunding bonds mature in 2030 and 2040, and were priced to yield 287.5 and 310 basis points over the 30-year Treasury yield, respectively. The bonds are callable at par in 2020.

Bonds from a $66.6 million series of tax-exempt recovery zone facility bonds mature in 2030 and 2040, yielding 4.77% with a 4.5% coupon and 5.00% priced at par, respectively. The bonds are callable at par in 2020.

The credit is rated A1 by Moody’s, A by Standard & Poor’s and A-plus by Fitch.

The District of Columbia competitively sold $225 million of tax and revenue anticipation notes to Wells Fargo Securities.

The Trans mature in 2011 with a 2% coupon and were not formally re-offered. The credit is rated MIG-1 by Moody’s, SP-1-plus by Standard & Poor’s and F1-plus by Fitch.

JPMorgan priced $140.6 million of GO debt from gilt-edged Delaware for retail investors, ahead of institutional pricing Wednesday.

The debt matures from 2011 through 2024, with yields ranging from 0.44% with a 2% coupon in 2012 to 2.88% with a 3% coupon in 2024. The bonds are not callable.

The state will also offer $115.7 million of Series 2010C taxable BABs and $59.5 million of Series 2010D QSCBs via competitive bid on Thursday.

Morgan Stanley priced $105.0 million of senior revenue bonds for Colorado’s E-470 Public Highway Authority.

The bonds mature in 2025 and 2026, respectively yielding 5.32% with a 5.25% coupon and 5.40% with a 5.375% coupon.

The bonds, which are callable at par in 2020, are rated Baa2 by Moody’s and BBB-minus by Standard & Poor’s and Fitch.

Meanwhile, Wells Fargo priced $106 million of unlimited-tax school building bonds for Texas’ Aldine Independent School District in two series.

Bonds from the $89.8 million Series A mature from 2014 through 2031, with a term bond in 2036.

Yields range from 0.95% with a 5% coupon in 2014 to 4.17% with a 4% coupon in 2035. The bonds are callable at par in 2021.

Bonds from the $16.2 million Series B mature from 2012 through 2026, with yields ranging from 0.51% with a 3% coupon in 2012 to 3.42% with a 3.25% coupon in 2026. The bonds are callable at par in 2021.

They are insured by the Texas Permanent School Fund guarantee program.

The underlying credit is rated Aa1 by Moody’s and AA-minus by Standard & Poor’s.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER