The largest deal of the week, the $850 million New York City Transitional Finance Authority may be complete, but the primary is still packed with a good amount of issuance scheduled for Thursday. Competitive deals are dominating the space, led by the$ 821.9 million Montgomery County, Md., general obligation issuance, but investors will have plenty to choose from. Here's your Playbook for Thursday, investors! Happy trading!
Primary
- The largest negotiated deal in the primary is a good deal smaller than the New York City TFA deal, but still piques investors' interest because it is California and a utility credit. Morgan Stanley is expected to price $271 million Los Angeles Department of Water and Power water system revenue bonds. The bonds had a retail order period on Wednesday, and are rated Aa2 by Moody's Investors Service and AA by Standard & Poor's and Fitch Ratings.
- Close on its heels is the California State and Public Works Board's $236.1 million lease revenue refunding bonds. The deal is coming in three parts with $139.48 million lease revenue refunding bonds for the Department of Corrections and Rehabilitation and the California Substance Abuse Treatment Facilitate and State Prison at Corcoran, and $79.82 million various capital projects bonds, and $16.8 million Department of State Hospitals bonds. JP Morgan is the lead underwriter and the bonds are rated A1 by Moody's and A-minus by S&P and Fitch.
- Otherwise there are a couple other smaller negotiated deals, including the $150.32 million Tacoma School District No. 10 Pierce County, Wash., unlimited tax general obligation bond sale. RBC Capital Markets is expected to price the bonds, and they have ratings of Aa1 from Moody's and AA-plus from S&P.
- Wisconsin is selling transportation revenue refunding bonds in a deal totaling $132.1 million. JP Morgan Securities is the managing underwriter on this too, and the bonds are rated Aa2 by Moody's, AA-plus from S&P and Fitch, and AAA by Kroll.
- Lastly in the negotiated market the Columbus City School District in Franklin County, Ohio, is issuing $131 million general obligation unlimited tax refunding bonds in a two-part deal. The $80.1 million portion is taxable and $50.68 million is tax exempt.
- The competitive market dominates the calendar with a hefty $821.9 million Montgomery County Md., general obligation issuance consisting of $500 million GO consolidated public improvement bonds and $321.9 million public improvement refunding bonds. The bonds are rated triple-A by all three major rating agencies and are scheduled for auction at 10:30 a.m. EDT ($500 million) and 11 a.m. EDT ($321.9 million).
- $250.5 million Massachusetts Water Resources Authority general revenue and general revenue refunding bonds will be sold Thursday in the competitive market too, in three parts. The $25.6 million general revenue refunding bonds are expected for sale at 10:30 a.m. EDT, the $141.6 million general revenue refunding bonds at 11 a.m. EDT, and the $72.6 million general revenue bonds at 10 a.m. EDT. All the bonds are rated Aa1 by Moody's and AA-plus by Fitch.
