Tuesday's primary will be dominated by the city of Fayetteville, N.C.'s $106 million revenue bond deal, scheduled to auction at 11a.m., EDST, according to TM3.
The North Carolina city's deal is rated double-A by Standard & Poor's and Fitch Ratings and Aa2 by Moody's Investors Service and its proceeds will go toward its public works commission budget, according to the preliminary official statement. Maturities will range from 2016 to 2039 and it is long-end loaded.
Between the high rating and its timing, the deal will likely pick up strong bids and come with a cheap borrowing cost for the city, said a Midwest based trader. The Fayetteville deal comes during one of this year's lightest primary calendar weeks, with just $2.53 billion scheduled to close ahead of the holiday weekend.
Not included in the week's primary calendar, however, is Tuesday's $5.4 billion tax and revenue anticipated note sale from the state of Texas. The deal is geared toward the institutional buyer, with the possibility of demand from the high net-worth buyer as well, as previously reported.
Because Texas is a low tax state, demand for municipal debt is much more muted than in states like New York or California, as previously reported.
There are no other competitive deals over $100 million scheduled to close on Tuesday. There are no negotiated deals over $100 million scheduled to price on Tuesday.
