Feb 10 A pair of toll bridge deals will lead a
U.S. municipal bond calendar next week that features around
$5.85 billion in total sales.
Calfiornia's Bay Area Toll Authority will issue the week's
biggest deal, pricing on Tuesday $552 million in negotiated
refinancing bonds to reduce borrowing costs.
The Delaware River Joint Toll Bridge Commission, a bi-state
agency that operates seven toll bridges in Pennsylvania and New
Jersey, will price a $438 million negotiated bond, to fund the
bulk of a $512 million reconstruction of the Scudder Falls
Both deals are scheduled to price on Tuesday and will be
underwritten by Bank of America Merrill Lynch.
The Scudder Falls Bridge, which crosses the Delaware River
along Interstate-95 and supports some 60,000 cars a day, will be
demolished to address safety concerns, and rebuilt by the
Trumbull Corporation, which was awarded the construction
contract, according to a road show presentation from the toll
Tree cutting and installation of noise walls are underway,
with full construction slated to begin in April and run through
August 2021, according to the presentation.
Next week's total muni supply will include $5.575 billion of
negotiated and competitive bonds, and another $271 million of
The Long Beach, California, Unified School District will
provide the biggest competitive bond deals, issuing $450 million
in general obligation bonds, while Rochester, New York, will
lead the way in notes, with $72 million in a pair of bond
Ongoing political and economic uncertainty could make it
difficult for the U.S. Federal Reserve to raise interest rates
in the near term, and "lower Treasury rates will certainly help
munis," Barclays analysts said in a weekly note on Friday.
Barclays, which projects net negative issuance for February,
said "healthy dealer inventories and positive fund flows should
also support the market in the coming weeks."
Barclays noted that tax policies of President Donald Trump
could also move markets.
Trump on Thursday hinted at an upcoming announcement he said
would be "phenomenal in terms of tax," but offered no detail.
(Reporting by Nick Brown; Editing by Bernard Orr)