NEW YORK, July 3 Roadways, ports and water projects lead an estimated $4.5 billion U.S. municipal bond and note sale calendar next week, including a $250 million deal from the Indiana Finance Authority on behalf of a public-private interstate highway project.
Citigroup is the lead manager for the negotiated sale of Indiana's private activity bonds, preliminarily rated BBB-minus by Standard & Poor's Ratings Services. The bonds are subject to the alternative minimum tax.
Proceeds of the sale go to I-69 Development Partners LLC to design, build, maintain and operate a 21-mile section of Interstate 69.
By the closing date of the bond sale, I-69 Development Partners is expected to be indirectly owned by a private Dutch global infrastructure company and Canada's public retirement system. The company will be 51 percent owned by Isolux Infrastructure Netherlands B.V., and 49 percent owned by Canada's Public Sector Pension Investment Board.
Also in the market next week is the New Jersey Turnpike Authority, which is selling $125 million of floating rate turnpike revenue bonds through lead manager RBC Capital Markets. The deal is being offered in three series of 2014 B bonds.
The sale comes on the heels of the authority's May offering of $1 billion of fixed-rate turnpike revenue bonds, series 2014 A, with serial maturities from 2027 to 2035. The deal was priced with a top yield of 4 percent in the longest maturity with a 4 percent coupon, according to the final pricing sheet.
Also in the market next week is the Massachusetts Port Authority, with a $251.7 million deal of both AMT and non-AMT revenue and revenue refunding bonds pricing through Raymond James.
The Delaware River and Bay Authority, North Texas Municipal Water District and California's Walnut Energy Center Authority are also each selling at least $100 million of bonds in negotiated deals next week.
The two biggest deals are both competitive ones, with the Massachusetts School Building Authority selling $300 million of subordinated sales tax bond anticipation notes on Thursday and the state of Wisconsin offering $254.8 million of general obligation bonds on Wednesday. (Reporting by Hilary Russ; Editing by Meredith Mazzilli)