The primary market will be light Tuesday with the largest deal coming from Portland, Ore., which will auction $288 million of sewer debt in two parts.
The largest scheduled negotiated issuance of the week, the $594 million Rhode Island Tobacco Settlement Financing Corporation deal, was scheduled to price Tuesday but has been moved to day to day status, according to two analysts. Citigroup is the lead manager of the deal, and analysts now expect it to come to market either late this week or early next.
Portland plans to tap the competitive market for a total of $288 million, according to TM3. The larger of the two pieces are the second lien sewer system revenue bonds for $195.865 million. These bonds have maturities ranging from 2015 to 2039 and are rated Aa3 by Moody's Investor Services and AA-minus by Standard & Poor's, according to data provided by TM3.
The smaller piece is the $92.165 million first lien sewer system revenue refunding bonds which are rated slightly higher. Moody's gave this tranche a Aa2 while S&P awarded it a double-A. Maturities are on the short to intermediate end ranging from 2015 to 2024, according to TM3.
The only other sizable deal to hit the competitive market Tuesday is $85.38 million Minnesota certificates of participation, which matures from 2016 to 2039, according to TM3. The deal is rated AA by Standard & Poor's and Fitch Ratings.
The $593 million Rhode Island Tobacco deal will come in two parts, with $336 million in Series 2014A serial and term bonds and $257 million in current interest turbo bonds, the latter of which is considered to be high yield, said the two analysts.
