The New York City Transitional Finance Authority’s $1.01 billion deal was accelerated by a day, with the retail order period curtailed and the bonds pricing for institutions on Tuesday.

In secondary market activity, top quality municipal bonds finished unchanged in quiet trading.

Primary market
Bank of America Merrill Lynch priced the NYC TFA’s $1.01 billion of Fiscal 2018 Series S-1 and S-2 building aid revenue bonds for institutions on Tuesday after a one-day retail order period. The deal was originally planned to be offered to retail buyers over two days with the institutional pricing on Wednesday.

“The TFA deal did really well, it had $700 million in retail orders yesterday, so it got accelerated to price for institutions today,” one New York trader said. “That is a good sign for the muni market, at least with respect to this credit.”

On Tuesday, the $805.68 million of Series S-1 BARBs were priced to yield from 1.12% with a 5% coupon in 2019 to 3.33% with a 4% coupon in 2036. The $200.49 million of Series S-2 BARBs were priced to yield from 0.91% with a 2% coupon in 2018 to 3.03% with a 5% coupon in 2036.

“This week, we had an exceptionally strong retail order period, with demand from individual investors exceeding $700 million,” Jack Sterne, spokesperson for the NYC Comptroller's Office. “In total, this refinancing should produce over $180 million in savings for city taxpayers. This sale makes clear that investors recognize New York City’s financial strength — and we’re pleased they continue to invest in our bonds.”

The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings.

Citigroup priced Philadelphia’s $331.75 million of Series 2017 general obligation bonds. The issue was priced to yield from 1.14% with a 3% coupon in 2018 to 3.53% with a 5% coupon in 2037.

“I would say the Philly deal did OK,” said another New York trader. “It was bumped anywhere from one to three basis points. It was helped by the fact that spread is king right now.”

The deal is rated A2 by Moody’s, A-plus by S&P and A-minus by Fitch, except for the 2035 maturity which is insured by Assured Guaranty Municipal and rated A2 by Moody’s and AA by S&P.

Since 2007, the city of brotherly love has sold $7.91 billion of debt, with the highest issuance in 2010 when it sold roughly $1.36 billion. Issuance was lowest in 2012 when it sold $92 million. With Tuesday’s sale, the city has more issuance so far this year than it did in 2016.

JPMorgan Securities priced the Aldine Independent School District, Texas’ $378.54 million of Series 2017A unlimited tax school building and refunding bonds.

The issue was priced to yield from 1.05% with a 5% coupon in 2019 to 3.02% with a 5% coupon in 2039; a 2042 maturity was priced as 5s to yield 3.09% and a 2045 maturity was priced as 5s to yield 3.13%.

The deal is rated triple-A by Moody’s and S&P.

BAML priced the Los Angeles Department of Airports’ $320.14 million of subordinate revenue bonds for the Los Angeles International Airport.

The $232 million of Series 2017A bonds subject to the alternative minimum tax were priced as 5s to yield from 1.19% in 2019 to 3.24% in 2037, 3.32% in 2042 and 3.38% in 2047%.

The $87.78 million of Series 2017B non-AMT bonds were priced as 5s to yield from 1% in 2019 to 3.01% in 2037 and 3.08% in 2042.

The deal is rated A1 by Moody’s and AA-minus by S&P and Fitch.

BAML priced the Riverside County Transportation Commission, Calif.’s $158.76 million of Series 2017A limited tax sales tax revenue bonds for institutions after a retail order period.

The issue was priced for institutions to yield from 0.97% with a 5% coupon in 2019 to 2.97% with a 5% coupon in 2038. A 2018 maturity was offered as a sealed bid.

The deal is rated AA-plus by S&P and AA by Fitch.

Loop Capital markets priced the city of Dallas’ $171.98 million of Series 2017 waterworks and sewer system revenue refunding bonds for Dallas, Denton, Collin, Kaufman and Rockwall counties.

The bonds were priced to yield from 1.16% with a 5% coupon in 2019 to 3.31% with a 4% coupon in 2037. A 2040 maturity was priced as 4s to yield 3.37%, a 2042 maturity was priced as 5s to yield 3.11%, and a 2046 maturity was priced as 5s to yield 3.15%. A 2018 maturity was offered as a sealed bid.

The deal is rated AAA by S&P and AA-plus by Fitch.

BAML priced the Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, Tenn.'s $120.89 million of revenue bonds for Vanderbilt University for retail investors ahead of institutional pricing on Wednesday.

The bonds were priced to yield from 4.10% with a 4% coupon in 2047 to 3.71% with a 5% coupon in 2048.

The deal is rated A3 by Moody's.

In the competitive arena, the Lewisville Independent School District, Texas, sold $202.53 million of Series 2017 unlimited tax school building GOs.

BAML won the bonds with a true interest cost of 2.90%. The issue was priced to yield from 0.98% with a 2% coupon in 2018 to approximately 3.41% in 2037 with a 3.25% coupon.

The deal, which is backed by the Permanent School Fund guarantee program, is rated AAA by S&P and Fitch.

The South Carolina Transportation Infrastructure Bank sold $188.62 million of Series 2017A revenue refunding bonds.

JPMorgan Securities won the bonds with a true interest cost of 3.8996%. The bonds were priced as 5s to yield from 3.07% in 2034 to 3.22% in 2040. The deal is rated A1 by Moody’s and A by Fitch.

In the short-term competitive sector, four groups won the state of Colorado’s $600 million of Series 2017A general fund tax and revenue anticipation notes.

Morgan Stanley won $400 million of the deal, taking $250 million with a bid of 4% and a $7,190,000 premium, an effective rate of 0.917540% and taking $150 million with a bid of 4% and a $4,311,000 premium, an effective rate of 0.919614%; Wells Fargo Securities won $150 million, taking $100 million with a bid of 5% and a $3,810,000 premium, an effective rate of 0.917112% and taking $50 million with a bid of 5% and a $1,919,500 premium, an effective rate of 0.887317%; JPMorgan won $40 million with a bid of 2.50% and a $589,200 premium, an effective rate of 0.920299%; and Barclays Capital won $10 million with a bid of 3% and a $194,100 premium, an effective rate of 0.919022%.

The deal is rated MIG1 by Moody’s and SP1-plus by S&P.

In the negotiated note sector, JPMorgan priced the San Diego Unified School District’s $195 million of Series A 2017-2018 tax and revenue anticipation notes as 3s to yield 0.86% in 2018. The deal is rated SP1-plus by S&P.

Secondary market
The yield on the 10-year benchmark muni general obligation was unchanged from 2.05% on Monday, while the 30-year GO yield was steady from 2.86%, according to the final read of Municipal Market Data's triple-A scale.

Treasuries were little changed on Tuesday. The yield on the two-year Treasury rose to 1.38% from 1.37% on Monday, the 10-year Treasury yield fell to 2.36% from 2.37% and the yield on the 30-year Treasury bond was flat from 2.92%.

The 10-year muni to Treasury ratio was calculated at 87.0% on Tuesday, compared with 86.5% on Monday, while the 30-year muni to Treasury ratio stood at 97.9% versus 97.8%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 41,467 trades on Monday on volume of $6.91 billion.

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Chip Barnett

Chip Barnett

Chip Barnett is a journalist with more than 40 years of experience. Barnett is currently Senior Market Reporter for The Bond Buyer.
Aaron Weitzman

Aaron Weitzman

Aaron Weitzman is a markets reporter for The Bond Buyer, focusing on the sell side of the municipal bond market.