Municipal bond sales seen at $5.11 bln next week

NEW YORK Fri Jan 17, 2014 2:09pm EST

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NEW YORK Jan 17 (Reuters) - Municipal bond sales are seen totaling about $5.11 billion next week, including a hefty $1 billion taxable deal by the Port Authority of New York and New Jersey, according to Thomson Reuters estimates on Friday.

Deals this week were around $3.8 billion according to the most recent data, and are expected to be less than the $4.88 billion forecast after a deal to help fund a nearly $1 billion stadium for the National Football League's Minnesota Vikings was postponed.

The deal volume shows that issuance is starting to return to normalized levels after a lull over the holiday period. Average weekly issuance for last year was around $5 billion.

About $3.30 billion will come in the form of negotiated deals and about $1.81 billion will be competitive deals.

The biggest deal next week is the Port Authority's $1 billion taxable bond sale led by Bank of America Merrill Lynch and provisionally slated for pricing on Wednesday. The bonds mature on Aug. 1, 2046, according to the preliminary official statement.

Other major deals include a $650 million sale of general revenue bonds by the New York State Thruway Authority. The deal was increased from $360 million to include a refunding portion, according to a market source. Barclays Capital will hold a retail order period for the bonds on Tuesday followed by formal pricing on Wednesday.

Among competitive deals, the State of Washington will sell $717.1 million of general obligation bonds in three series. About $355 million of bonds are structured with serial maturities from 2022 through 2039, $273.9 million of motor vehicle fuel tax bonds have serial maturities from 2015 through 2039 and $88.1 million of taxable bonds mature in 2015 through 2022, according to the POS.

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