Municipal bond sales are expected to be slightly lower during this holiday-shortened Columbus Day week, with an estimated $8.32 billion of new volume hitting the market, according to Ipreo LLC and The Bond Buyer. Last week, $8.42 billion of bonds came to market, according to Thomson Reuters.
The state of Washington expects to issue $1.375 billion of taxable and tax-exempt general obligation debt on Wednesday. The deals include $875.7 million of new-money and refunding tax-exempt GOs and $500 million of taxable Build America Bonds.
The tax-exempt bonds will be priced competitively and are expected to be issued in three series. The $229 million of Series C bonds will be issued as new money. The $417 million of Series R-2010B will be issued as various-purpose refunding bonds. The $227 million of Series R-2010C bonds will be refunding bonds.
Chris McGann, the communications director for the state treasurer’s office, said this series will be a “double barrel,” funded by state taxes collected on motor vehicle fuel and Washington’s full faith and credit pledge to support the bonds.
The $500 million taxable portion will be state’s first issuance of BABs, according to McGann. The BABs will also be the state’s first negotiated deal in 13 years, he said.
Goldman, Sachs & Co. and JPMorgan will serve as co-lead underwriters. The BABs will be backed by fuel and general taxes. Maturities are expected to be determined at pricing.
The taxable and tax-exempt bonds are rated Aa1 by Moody’s Investors Service, AA-plus by Standard & Poor’s and AA by Fitch Ratings.
The New York City Transitional Finance Authority expects to issue $881 million of tax-exempt bonds and BABs on Thursday.
The TFAsaid in a statement that it will issue $800 million of fixed-rate new money bonds that carry a subordinate lien. About $140 million of the debt will be priced as tax-exempt bonds that are expected to mature in 10 years or less. About $660 million of debt will be sold as longer-maturity BABs, the TFA said.
Additionally, it expects to convert $81 million of variable-rate demand bonds to fixed rate.
The tax-exempt bonds will mature between 2011 and 2016. The authority said it will offer a retail order period on today and Wednesday.
Goldman will serve as senior underwriter. The TFA is rated Aa1 by Moody’s, AAA by Standard & Poor’s, and AA-plus by Fitch. Moody’s rates the subordinate bonds Aa2.
The University of Massachusetts Building Authority on Wednesday expects to issue $524.8 million of project revenue bonds for general purposes at the system’s five campuses.
The bonds will include $231 million of funding for the construction of the Albert Sherman Center, an addition to the university’s medical school that will open in 2012 in Worcester.
The tax-exempt and taxable bonds will be issued in three series. The $328 million of tax-exempt Series 2009-1 are expected to mature between one and 20 years. The $167.5 million of Series 2009-2 will be issued as BABs.
The $28.8 million of Series 2009-3 bonds will be federally taxable. Maturities for the taxable series were not available at press time.
The bonds are rated Aa3 by Moody’s and A-plus by Standard & Poor’s. Citi and JPMorgan will serve as co-lead underwriters.
Atlanta expects to issue $433.4 million of water and wastewater revenue refunding bonds. The Series B bonds will mature between one and 15 years.
The bonds will refund all of the city’s outstanding water and wastewater revenue bonds from 2001 and will increase its debt service reserve fund.
Goldman Sachs, SunTrust Robinson Humphrey, and Terminus Securities will serve co-lead underwriters. The bonds have underlying ratings of Baa1 from Moody’s and BBB-plus from Standard & Poor’s. Financial Security Assurance Inc. will guarantee principal and interest payments on all Series B bonds.