The long-awaited bond deal for the American Dream mall project in New Jersey came to market on Wednesday and the New York City Transitional Finance Authority’s offering was priced for institutional investors.

In secondary activity, municipal bonds were unchanged at mid-session, according to traders.

Primary market
Details were not immediately available on the Wisconsin’s Public Finance Authority’s $1.1 billion revenue bond deal for the American Dream project. Goldman Sachs is the underwriter on the deal, which the PFA is issuing on behalf of the New Jersey Sports & Exposition Authority.

The issue consists of $800 million of limited obligation PILOT revenue bonds and $300 million of limited obligation grant revenue bonds. The deal is not rated.

Loop Capital markets priced the New York City Transitional Finance Authority’s $850 million of tax-exempt Fiscal 2017 Series F Subseries F-1 future tax secured subordinate bonds for institutions after holding a two-day retail order period.

The bonds were priced to yield from 0.99% with a 3% coupon in 2019 to 2.92% with a 5% coupon in 2039 and from 2.94% with a 5% coupon in 2042 to 3.27% with a 4% coupon in 2044.

The issue is rated Aa1 by Moody’s Investors Service and AAA by S&P Global Ratings and Fitch Ratings.

The TFA also competitively sold $250 million of taxables in two separate offerings Wednesday.

The $189.14 million of taxable subordinate Fiscal 2017 Series F Subseries F-2 future tax secured bonds were won by JPMorgan Securities with a true interest cost of 2.81%. The $60.86 million of taxable subordinate Fiscal 2017 Series F Subseries F-3 future tax secured bonds were also won by JPMorgan with a TIC of 3.21%. Pricing information on the deals was not immediately available.

The bonds are also rated Aa1 by Moody’s and AAA by S&P and Fitch.

Also in the competitive sector, the Rhode Island Health and Educational Building Corp. sold $140.81 million of Series 2017A higher education facilities revenue bonds for Brown University.

Bank of America Merrill Lynch won the bonds with a TIC of 3.25%. The issue was priced as 5s to yield from 1.32% in 2022 to 2.19% in 2029; a 2037 maturity was priced as 4s to yield 3.06% and a 2047 maturity was priced as 4s to yield 3.28%.

The deal is rated Aa1 by Moody’s and AA-plus by S&P.

Since 2007 the HEBC has issued roughly $3.52 billion of securities, with the largest amount occurring in 2016, when it sold $587 million. The lowest yearly issuance took place in 2014, when it issued just $68 million.

In the negotiated sector, BAML is expected to price the Port of Oakland, Calif.’s $259 million of intermediate lien refunding revenue bonds, consisting of Series 2017D bonds subject to the alternative minimum tax, Series 2017E non-AMT bonds, Series 2017F non-AMT bonds and Series 2017G taxable bonds.

The deal is rated A2 by Moody’s and A by S&P and Fitch.

Citigroup is expected to price the Metropolitan Water District of Southern California’s $188 million of Series 2017B subordinate water revenue bonds for retail investors.

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

Bond Buyer reports 30-day visible supply
The Bond Buyer's 30-day visible supply calendar decreased $5.25 billion to $10.16 billion on Wednesday. The total is comprised of $2.97 billion of competitive sales and $7.19 billion of negotiated deals.

Secondary market
The yield on the 10-year benchmark muni general obligation was unchanged from 1.86% on Tuesday, while the 30-year GO yield was flat from 2.70%, according to a read of Municipal Market Data's triple-A scale.

Treasuries were weaker on Wednesday. The yield on the two-year Treasury rose to 1.36% from 1.34% on Tuesday, the 10-year Treasury yield gained to 2.17% from 2.15% and the yield on the 30-year Treasury bond increased to 2.74% from 2.73%.

On Tuesday, the 10-year muni to Treasury ratio was calculated at 86.5%, compared with 85.0% on Monday, while the 30-year muni to Treasury ratio stood at 98.7% versus 96.8%, according to MMD.

MSRB: Previous session's activity
The Municipal Securities Rulemaking Board reported 42,851 trades on Tuesday on volume of $9.45 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.