U.S. muni bond sales expected to drop to $4.45 bln next week
NEW YORK, Aug 16 (Reuters) - U.S. municipal bond sales are expected to plunge to $4.45 billion next week from almost $10.24 billion this week, according to Thomson Reuters estimates on Friday. More issuers from Michigan will tap the $3.7 trillion U.S. municipal bond market after three deals priced this week, including a state transportation bond sale and a school district issue. In recent weeks, at least three local Michigan issuers have postponed bonds sales amid worries that investors were demanding higher yields in the wake of Detroit's July 18 municipal bankruptcy filing. Next week, the Michigan Finance Authority will sell $92 million of state aid revenue notes for the Detroit School District through lead manager J.P. Morgan. A day for the sale has yet to be determined. The notes, which mature on Aug. 20, 2014 and were rated SP-1 by Standard & Poor's Ratings Services, are secured by an intercept of the district's state aid. Like Detroit, the city's public school system has severe financial problems and is being run by a state-appointed emergency manager. On Wednesday, the school district in Sandusky, Michigan is planning to refinance $4.9 million of unlimited tax general obligation bonds in a competitive sale. Michigan's Bath Charter Township has scheduled a competitive sale of $2.8 million of limited tax GO bonds for Tuesday. Negotiated sales next week are expected to drop to $3.5 billion in 49 deals vs $9.48 billion in 69 sales this week. Bank of America Merrill Lynch is the lead manager on the top three negotiated sales next week. On Tuesday, New Jersey's Transportation Trust Fund Authority will sell $850 million of transportation program bonds after a one-day retail order period on Monday. Ahead of the sale the bonds were rated A1 by Moody's Investors Service and A-plus by Fitch Ratings. Both agencies have a assigned a stable outlook to the ratings. The Dormitory Authority of the State of New York will sell $526.6 million of dormitory facilities revenue bonds for the State University of New York . The sale will have a one-day retail order period on Wednesday followed by institutional pricing on Thursday. After a one-day pre-sale order period on Monday, triple-A-rated Columbus, Ohio, will sell $341.3 million of general obligation debt on Tuesday. The deal consists of $296.5 million of tax-exempt bonds, $24.9 million of taxable bonds, and $19.8 million of tax-free notes. Competitive deals are expected to total $950.6 million in 78 sales, rising from $757.8 million in 78 issues in the week ended Aug. 16. On Tuesday, Texas's Board of Regents of the University of Houston System will sell $152.5 million of consolidated revenue bonds in a two-part sale. The deal consists of $103.4 million of taxable refunding bonds with serial maturities from 2014 through 2037, according to the preliminary official statement. It also includes $48.9 million of tax-exempt refunding bonds with serial maturities from 2014 through 2033.
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