New York issuers will dominate the new-issue activity this week as both the Triborough Bridge and Tunnel Authority and the New York City Municipal Water Finance Authority come to the primary market amid an anticipated slate of $7.5 billion, according to Thomson Reuters.
Last week, a $1 billion North Texas Tollway Authority revenue sale was the largest deal to be priced, along with $3.45 billion of revised new-issue volume.
The Texas deal, which was rated A3 by Moody's Investors Service and BBB-plus by Standard & Poor's, was priced by Lehman Brothers last Thursday with a 53/4% coupon in 2038 to yield 5.99% - 64 basis points higher in yield than the triple-B curve due in 2038 published by Municipal Market Data, and 146 basis points higher than MMD's generic triple-A GO curve.
This week, the Triborough Bridge and Tunnel Authority will bring a two-pronged sale of general revenue bonds to market totaling $1 billion. The deal is comprised of $650 million of senior bonds and $350 million of subordinate bonds, but both are structured to mature from 2009 to 2038 and will be priced by Citi tomorrow after a retail order period today.
The 2008C senior bonds are rated Aa2 by Moody's, AA-minus by Standard & Poor's, and AA by Fitch Ratings, while Series 2008D subordinate bonds are rated Aa3 by Moody's, A-plus by Standard & Poor's, and AA-minus by Fitch.
A $333 million revenue deal from the Municipal Water Finance Authority is also on tap this week. Depfa First Albany Securities LLC will price the offering on Wednesday, following a retail order period planned for tomorrow.
The water and sewer deal will be comprised of serial bonds maturing from 2013 to 2022 and is expected to be rated Aa3 by Moody's, and AA by Standard & Poor's and Fitch.
Elsewhere in the Northeast, Maryland is planning to sell $415 million of general obligation bonds to market on Wednesday structured to mature from 2011 to 2023. Maryland's GOs have natural triple-A ratings from all three agencies.
In the Southeast, the Florida Hurricane Catastrophe Fund Finance Corp. will bring a $625 million offering of revenue debt to market when book-runner Citi prices the deal on Wednesday with a structure that includes just two maturities in 2013 and 2014. The bonds are rated Aa3 by Moody's, and AA-minus by Standard & Poor's and Fitch.
California and Washington issuers will also bring sizable deals to market this week led by a $380 million offering of customer facility charge revenue bonds from the Port of Seattle. However, $360.3 million of the deal is taxable, while only $19.4 million is tax-exempt.
The multi-faceted issue consists of current interest bonds maturing in 2021 and 2031, and capital appreciation, or zero-coupon bonds, maturing from 2031 to 2040. It's rated A2 by Moody's and A-minus by Standard & Poor's.
Meanwhile, the California Statewide Communities Development Authority is expected to sell $225 million of student housing revenue bonds on Thursday when Lehman prices the offering. Rated Baa2 by Moody's, the deal consists of serial bonds maturing from 2012 to 2018 with term maturities in 2023, 2028, 2033, and 2040.
In the California competitive market, San Francisco will sell $119.3 million of GO refunding debt tomorrow. Maturing from 2022 to 2030, the bonds are expected to be rated Aa3 by Moody's, AA by Standard & Poor's, and AA-minus by Fitch.
Also out West, Nevada is planning a three-pronged sale of GOs on Wednesday totaling $293.1 million. The deal consists of $273.1 million maturing from 2013 to 2027, $12.7 million maturing from 2013 to 2028, and $7.3 million maturing from 2013 to 2021.
Nevada's GO debt is rated Aa1 by Moody's and AA-plus by Standard & Poor's and Fitch.
Elsewhere in the region, a $260 million triple-A-rated deal is expected on Wednesday from the Cypress-Fairbanks Independent School District in Texas. The GO and refunding sale, which is backed by the state's triple-A Permanent School Fund, is expected to be priced by Merrill, Lynch & Co. with a structure that includes $170,000 of capital appreciation bonds that mature from 2009 to 2014, and $258 million of current interest bonds that mature from 2010 to 2035.
Meanwhile, the Oklahoma Development Finance Authority will issue $230 million of health system revenue and refunding bonds on behalf of the Integris Obligated Group. Lead manager Goldman, Sachs & Co. is planning to price the offering on Thursday, but the firm was still hammering out the structure at press time on Friday. The bonds are rated Aa3 by Moody's and AA-minus by Standard & Poor's.
The only sizable note deal on the calendar this week is a $215 million sale of tax and revenue anticipation notes from Colorado, which is expected to be priced tomorrow in the competitive market.