Muni Market Has 'NY State of Mind' in Estimated $7.05B Week

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The muni market will have a New York State of mind for the first week in June, as the two largest issues will be coming from the Empire State.

Estimated volume for the week is $7.05 billion, according to Ipreo and The Bond Buyer. That total is made up of $5.29 billion of negotiated deals and $1.76 billion of competitive sales. The total compares with $3,656.0 million sold in the four-days of trading in the past week, according to Thomson Reuters.

The Big Apple will come to market with three separate offerings totaling $916.79 million. JPMorgan is expected to price the city's $616.79 million of Fiscal 2015 Series F, Subseries F-1 and Fiscal 2015 Series 1 general obligation bonds on Tuesday. The deal is expected to mature serially from 2016 to 2037 and will feature two retail order periods on May 29 and June first. The issue is rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.

In the competitive arena on Tuesday, the city will offer two separate sales of $195 million Fiscal 2015 Subseries F-3 taxable GOs and $105 million of  Fiscal 2015 Subseries F-2 taxable GOs.

Citi is slated to price the New York State Dormitory Authority's $500 million of bonds for the North Shore Long Island Jewish Health System on Wednesday. The DASNY issue is rated A2 by Moody's, A-minus by S&P and A by Fitch. The deal is expected to mature serially from 2016-2035 with term bonds in 2040 and 2045.

According to representatives from DASNY, the proceeds of the sale are expected to be used as follows: $70 million in new money to finance the construction, renovation and modernization of the Emergency Departments at both Huntington Hospital and Southside Hospital; and $430 million to refund all or a portion of DASNY's North Shore - Long Island Jewish Obligated Group Revenue Bonds Series 2003, Series 2005 A& B, Series 2007A, and Series 2009 A Bonds.

"The savings will depend on market conditions, however we worked to get this bond sale to the market as quickly as possible, to best serve the client's needs," said the representatives in an email.

In the nation's capital, Citi is also expected to price the District of Columbia's $534.435 million of GOs on Thursday. The deal is expected to mature serially from 2018 to 2035.

This deal is separated into two series; Series 2015A is for $500 million and will be new money and Series 2015B is $34.435 million which will be refunding of bonds from 2005.

"The new money proceeds will support our capital program, which the main use for the program is for schools, transportation and other infrastructure projects," said Jeffrey Barnette, Treasurer for the District of Columbia.  "The refunding portions of the deal - the 2005 bonds have reached their 10 year call date so we will be refunding those for economic purposes and we are projecting present value savings of $9 million."

The bonds are rated Aa1 by Moody's and AA by S&P and Fitch. Barnette believes the ratings speak for themselves as the leadership of the city has done a great job and the rating agencies have taken notice of that.

"The ratings definitely help us when we come to market. We are hopeful that the market stays stable until after the sale is complete," he said.

In the competitive sector, on Wednesday the Maryland Department of Transportation is selling two separate bond issues totaling $488 million. The sales consist of $337.51 million of refunding Series 2015 consolidated transportation bonds and $150 million of Series 2015 second issue consolidated transportation bonds. Both issues are rated Aa1 by Moody's, triple-A by S&P and AA-plus by Fitch.

William Blair is set to price the Leander Independent School District, Texas' $300 million of Series A and B unlimited tax refunding bonds. The issue, backed by the Permanent School Fund guarantee program, is rated triple-A by S&P and AA-minus by Fitch.

Barclays Capital is slated to price Franklin County, Ohio's $281.59 million of Series 2015 hospital facilities revenue bonds for the Ohio Health Corp. on Wednesday. The bonds are rated Aa2 by Moody's, AA-plus by S&P and AA by Fitch.

Bank of America Merrill Lynch is set to price the Lower Colorado River Authority, Texas' $231 million of Series 2015 transmission contract refunding revenue bonds for the LCRA Transmission Services Corp. on Thursday. The bonds are rated A by Moody's and A-plus by S&P.

Also on the competitive slate for next Tuesday are the East Bay Municipal Utility District, Calif.'s $109 million of Series 2015B water system revenue green bonds, rated Aa1 by Moody's triple-A by S&P and AA-plus by Fitch; and the Broward County School District, Fla.'s $159 million of Series 2015 general obligation school bonds, rated Aa3 by Moody's, A-plus by S&P and AA-minus by Fitch.

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