A $1 billion North Texas Tollway Authority revenue refunding and a handful of hefty note deals will headline the fairly brisk post-holiday activity in the primary market this week as part of an expected $5.96 billion of competitive and negotiated new-issue volume, according to Thomson Reuters. Last week the market saw a revised $3.39 billion in total volume.
The Texas deal is the largest of the week and is slated to be priced by Lehman Brothers on Thursday with a structure that is heavily weighted on the long end of the yield curve with bonds maturing from 2030 to 3038. The Series 2008 F bonds are rated A3 by Moody's Investors Service and BBB-plus by Standard & Poor's. The second-tier revenue refunding bonds, which are secured by tolls and other revenues of the NTTA, will retire a portion of its Series 2007 bond anticipation notes.