The Week Ahead: $1B DASNY Deal Opens Year with a Bang

An estimated $2.185 billion is expected for negotiated sale the week of Jan. 5, according to Ipreo LLC and The Bond Buyer, while competitive sales are expected to total $1.055 billion.

Topping the new-issue calendar is the Dormitory Authority of the State of New York's $1 billion general purpose state personal income tax revenue bond sale. A group including Barclays, Citigroup and Rice Financial Products is expected to price the bonds for retail investors on Tuesday, followed by institutional pricing on Wednesday. The bonds have been rated AA-plus by Fitch Ratings.

"The upcoming PIT bond sale is a refunding for savings, as assumed in the state's current financial plan," a DASNY spokesman told The Bond Buyer last month.

Elsewhere on the negotiated slate, the state of Oregon's Department of Administrative Services is expected to sell a $412 million lottery revenue bond deal. The offering is expected to price Jan. 8 with Citi running the books for a team of seven investment banks; it will be sold in six series of tax-exempt and taxable serial bonds. The deal is rated Aa2 by Moody's and AAA by S&P. Oregon last sold lottery bonds on July 17, in a $214 million offering in three series. Yields ranged from 0.14% with a 5% coupon in 2015 to 2.8% with a 5% coupon in 2027.

Citi is also expected to price Broward County, Fla., School Board's $273 million certificates of participation on Jan. 7. The COPs are structured to mature serially from 2016 to 2030 and are rated A1 by Moody's, A by S&P and A-plus by Fitch.

On the competitive side, Miami-Dade County, Fla., has three separate sales of general obligation bonds totaling $371.93 million going up for bid on Jan. 6.

The biggest of the three deals is a $226.4 million sale for the Building Better Communities program. The deal is structured to mature serially from 2015 to 2035. A $93.4 million sale for the public health trust program will mature serially from 2015 to 2044. And the smallest issuance, $52.1 million for the parks program, is scheduled to mature serially from 2020 to 2030.

All three deals are being advised by Public Financial Management and are rated Aa2 by Moody's Investors Service and AA by Standard & Poor's.

Also in the competitive market, Shelby County, Tenn., will sell a $172.6 million general obligation refunding bond issue on Jan. 8. This deal is structured to mature serially from 2015 to 2027. It is rated Aa1 by Moody's and AA-plus by both S&P and Fitch Ratings.

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