Barclays Capital is set to price the University of California's $2.8 billion offering for retail investors on Tuesday in two separate deals.
Raymond James is co-manager on two series of limited project revenue bonds, consisting of $1.2 billion of tax-exempt 2015 Series I bonds and $440 million of taxable 2015 Series J bonds. Stifel is the co-manager on the two general revenue bond series, consisting of $770 million of tax-exempt Series AO bonds and $370 million of taxable 2015 Series AP bonds.
A retail order period will be held for all the series on Tuesday. The institutional pricing for both general revenue bond series and the taxable limited project revenue bonds is set for Wednesday.
"The refunding portion of the issue is approximately $2.2 billion and the new money portion of the issue is approximately $600 million," said John H. Augustine, managing director, Barclays Capital and one of four joint-senior managers on the deal. "Each portion of the issue will consist of taxable and tax-exempt series. The size of the issue is determined by the fact that there is refunding savings in the current market," he said.
Since 2005, UC Regents has issued about $21.5 billion of revenue bonds. The largest issuances came in the years of 2013 and 2009 when $4.7 billion and $2.7 billion were sold, respectively. The lowest issuances occurred in 2008 and 2014, when $572 million and $970 million were sold, respectively.
Primary Market
Also on Tuesday, Citigroup Global Markets is expected to price the Rhode Island Tobacco Settlement Finance Corp.'s $600 million of asset-backed bonds.
In the competitive arena on Tuesday, New York State will sell $325 million of tax-exempt, taxable and tax-exempt refunding general obligation bonds in three separate competitive sales.
Boston will sell $270 million of GO and GO refunding bonds in two separate offerings on Tuesday.
Secondary Market
Treasury prices were higher on Tuesday. The yield on the two-year Treasury note fell to 0.68% from 0.70% on Monday, while the 10-year yield decreased to 2.15% from 2.20% and the 30-year yield dropped to 2.75% from 2.80%.
Prices of top-rated munis ended little changed on Monday. The yield on the 10-year benchmark muni general obligation finished up one basis point to 2.18% from 2.17% on Friday, while the yield on 30-year GO was unchanged at 3.02%, according to the final read of Municipal Market Data's triple-A scale.
On Monday, the 10-year muni to Treasury ratio was calculated at 99.4% versus 97.3% on Friday, while the 30-year muni to Treasury ratio stood at 107.9% compared to 106.7%.
Bond Buyer Visible Supply
The Bond Buyer's 30-day visible supply calendar increased $1.029 billion to $16.187 billion on Tuesday. The total is comprised of $3.268 billion competitive sales and $12.920 billion of negotiated deals.
MSRB Previous Session's Activity
The Municipal Securities Rulemaking Board reported 35,802 trades on Monday on volume of $6.278 billion.
Most active on Monday, based on the number of trades, was the Pima County Industrial Development Authority, Ariz., education facility revenue bonds for the Lehman Academy of Excellence Series 2015 6 1/2s of 2045, which traded 245 times at an average price of par with an average yield of 6.5%; (initial offering price of 100.00/initial offering yield of yield of 6.5%).
