January 24, 2014 / 8:26 PM / 3 years ago

U.S. municipal bond sales seen at $4.8 bln next week

3 Min Read

NEW YORK, Jan 24 (Reuters) - U.S. municipal bond sales are expected to total about $4.8 billion next week, including the state of Minnesota's return to a nearly $468 million stadium bond deal that was previously waylaid by a lawsuit.

The dollar amount of new deals coming to market next week is in line with offerings this week, which totaled roughly $5 billion, according to Thomson Reuters estimates on Friday. Average weekly issuance for last year was around $5 billion.

Negotiated deals are forecast to total about $2.9 billion next week, with competitive offers totaling roughly $1.9 billion.

Next week will mark Minnesota's second try at selling nearly $468 million of general fund appropriation bonds to help fund a new stadium for the National Football League's Vikings. The deal, which originally had been scheduled to be priced the week of Jan. 12, was postponed after a lawsuit was filed in the Minnesota Supreme Court challenging the constitutionality of the funding plan for the 65,000-seat domed stadium.

The state is moving forward with the sale of the AA-rated bonds after the high court on Tuesday dismissed the lawsuit. .

The deal, which is slated to be priced through RBC Capital Markets on Monday, is structured with $397.68 million of tax-exempt bonds with serial maturities from 2015 through 2033 and term bonds due in 2038 and 2043, according to the preliminary official statement. Another $70.25 million of taxable bonds carry maturities from 2015 through 2029, along with term maturities in 2034 and 2043.

The Illinois State Toll Highway Authority will sell $404 million of senior revenue refunding bonds through Goldman, Sachs and Co on Wednesday. The issue is structured with serial maturities in 2019 through 2022, according to the POS.

Among competitively bid deals, Texas's Tarrant Regional Water District is selling $529 million in two parts. The district saw its nearly $574 million in outstanding water revenue bonds downgraded to AA by Fitch this week because of a downgrade of Fort Worth's water and sewer system revenue bonds in April.

Fort Worth is the district's biggest customer, accounting for 59 percent of total water payments made to the district in fiscal 2013, Fitch said. Fitch also assigned an AA rating to the roughly $324 million of water revenue bonds series 2014 the district plans to sell on Thursday.

The district will also sell about $205.5 million of water transmission facilities contract revenue bonds on Tuesday.

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