Mon 04/01/2024 15:10 PM
Share this article:
Arizona State University, or ASU, and the city of Burbank, Calif., are the next two borrowers looking to redeem their Build America Bonds, or BABs, according to EMMA notices posted last week. ASU is targeting $120.24 million of Series 2010A bonds, and Burbank is considering a redemption of the Series 2010 water and power electric revenue bonds.

The notices came on the heels of two BABs refundings last week that totaled $1.2 billion from the state of Washington and Purdue University, as reported. The BABs refundings were part of a heavy supply of $9.4 billion. Supply is expected to drop to $6 billion after the Easter holiday, according to the EMMA new issue calendar.

In the non-BABs segment of the market, on March 27, Morgan Stanley remarketed the $770 million Series 2023C Brightline Florida Passenger Rail Expansion Project revenue bonds issued by the Florida Development Finance Corp. Final pricing was in line with the previous week’s price talk, which consisted of an 8.25% coupon and a par call through the month of April with a premium of 104.5 from May 1 to Aug. 15.

On March 26, D.A. Davidson priced $246.7 million in tax increment revenue bonds via the Public Finance Authority on behalf of Miami Worldcenter Project. The nonrated deal received ample support from investors and was 9x oversubscribed, according to sources. The welcoming reception of the credit, however, had more to do with supply-and-demand imbalance right now in high-yield munis rather than credit quality, according to an investor.

“Over half of the fund inflows year to date is in high-yield funds, while new issue supply in high yield is well below average,” the source said. “Anything offering yield and especially a new name like this is seeing strong demand.”

Also last week, RBC Capital Markets priced the $43.595 million offering for the BB- rated La Salle University. The final deal structure added a 2030 maturity and split the original 2042 maturity into two separate tranches, one with a 6.25% coupon and the other with a 6.75% coupon. Earlier in the week, Cain Brothers priced a $108 million offering for the BBB- rated Three Pillars Senior Living Communities.

A snippet for the final pricing for the aforementioned deals is shown below:
(Click HERE for the full table.)

Reorg compiled a list of potential borrowers coming to market in the first quarter of 2024 through a combination of EMMA disclosures and MuniOS deal alerts, as shown below. New additions this week include Cornell University, Lake Norman Charter School, Lutheran Senior Services and ASU.
New Issue Calendar  
Issuer Obligor Amount (000s) Purpose Timing Deal Team  
Louisiana Public Facilities Authority I-10 Calcasieu River Bridge Public-Private Partnership Program $1,340,000 Construction of a bridge replacement in Lake Charles, La. Week of April 1 JPMorgan, Wells Fargo EMMA
Colorado Statewide Bridge and Tunnel Enterprise Colorado Statewide Bridge and Tunnel Enterprise $150,000 Tax-exempt infrastructure revenue bonds Week of April 1 BofA Securities EMMA
Board of Regents of the University of Oklahoma University of Oklahoma TBD Revenue and refunding bonds for Series 2020C debt April 8, 2024 Barclays Capital Inc. EMMA
State of Oregon State of Oregon $260,000 Lottery revenue bonds Week of April 15 Goldman Sachs, Jefferies EMMA
Arizona Board of Regents Arizona State University $376,890 System revenue refunding bonds April 16 TBD EMMA
Arizona Board of Regents Arizona State University $149,820 SPEED revenue refunding bonds April 18 TBD EMMA
State of Oregon State of Oregon $507,750 State projects, grant programs Week of April 22 Morgan Stanley, Wells Fargo EMMA
City of Houston City of Houston TBD Refunding Week of April 22 Jefferies EMMA
North Carolina Medical Care Commission Novant Health $2,500,000 Facilities revenue bonds for construction Week of April 29 JPMorgan, RBC Capital Markets EMMA
South Dakota Health and Educational Faciilities Authority Avera Health $465,000 Finance capital projects; refunding prior debt April 2024 BofA Securities, JPMorgan, Colliers Securities EMMA
TBD Energy Northwest $800,000 Fund capital projects and refi outstanding debt April 2024, May 2024 JPMorgan, Wells Fargo, BofA Securities EMMA
TBD HonorHealth $500,000 Fund capital projects and refi Series 2019 debt April 2024, Sept. 2024 RBC Capital Markets, BofA Securities EMMA
San Diego Unified School District San Diego Unified School District TBD GO refunding bonds; tender offer Week of May 6 Jefferies, Siebert Williams Shank EMMA
Airport Commission of the City and County of San Francisco San Francisco International Airport TBD Revenue refunding bonds Week of May 6 Goldman Sachs, BofA Securities EMMA
Metropolitan Washington Washington Airports Authority Metropolitan Washington Airports Authority TBD Capital projects; refund Series 2014A, Series 2015A May 2024 BofA Securities EMMA
Burbank-Glendale-Pasadena Airport Authority Bob Hope Airport $800,000 New money May 2024 BofA Securities EMMA
TBD Chicago Park District TBD Finance capital improvements; Refund taxable Series 2021A bonds April/May 2024 Jefferies EMMA
Utah Charter School Finance Authority Ascent Academies of Utah TBD New money for construction Prior to June 2024 TBD EMMA
TBD Lutheran Senior Services TBD Refund Series 2014A,B; capital projects June 2024 Ziegler EMMA
Union County Improvement Authority Aries Linden, LLC TBD Solid waste disposal revenue bonds Q2 2024 TBD EMMA
New Jersey Health Care Facilities Financing Authority RWJ Barnabas Health $680,000 Refund Series 2013A, Series 2014A bonds; Capital projects Q2 2024 Jefferies EMMA
TBD Lake Norman Charter School Inc. $35,000 New construction Mid-2024 TBD EMMA
Bonneville Power Administration Port of Morrow, Ore. $81,000 Acquire transmission facilities Summer 2024 Wells Fargo, TD Securities, BofA EMMA
Orange County, N.Y., Funding Corporation Braemar at Wallkill $35,500 Refinancing Series 2012 debt TBD TBD EMMA
City of Valparaiso, Indiana Pratt Paper LLC $175,000 Refinancing Series 2013 debt TBD TBD EMMA
Dormitory Authority of the State of New York Cornell University $1,100,000 Fund new projects; refund prior bonds TBD BofA Securities, Goldman Sachs EMMA

The deals that have gone day to day since last June are shown in the chart below:
Day-to-Day Calendar  
Issuer Amount (000s) Original Pricing Date Deal Team Intel
Domain at Midtown Park $119,000 June 1, 2023 Goldman Sachs Intel
QCF Behavioral Hospitals I $232,000 June 29, 2023 Citigroup Intel
Axis Kessler Park $91,000 July 27, 2023 Goldman Sachs Intel
Agape Community Sports Services $43,000 Aug. 3, 2023 Citigroup Intel
WFCS Holdings III $43,000 Aug. 14, 2023 BofA Securities Intel
LIPA $823,000 Oct. 3, 2023 JPMorgan Intel
Earlham College $50,000 Oct. 16, 2023 PNC Intel
Muse at Midtown $91,000 Oct. 16, 2023 Citigroup Intel
Clay Lacy Aviation $44,000 Nov. 16, 2023 Wells Fargo Intel

Reorg is also tracking Build America Bonds redemption notices that have been announced since the beginning of this year, as detailed below.
Build America Bonds Redemption Notices  
Issuer Obligor Amount Targeted (000s) Refunding Seres EMMA Redemption Notice Expected Timing Deal Team
Midland County Hopital District of Midland County, Texas Midland County Hopital District of Midland County, Texas $79,575 Series 2009B EMMA    
Commonwealth of Kentucky, State Property and Buildings Commission Commonwealth of Kentucky, State Property and Buildings Commission $183,990 Series C (Project No. 117), Series D (Project No. 122), Series B (Project No. 125) EMMA March 21 BofA Securities
Los Angeles Unified School District Los Angeles Unified School District $342,279 Series 2009KY, Series 2010KY EMMA   BofA Securities, Jefferies, RBC Capital Markets
Bay Area Toll Authority Bay Area Toll Authority $1,500,000 Series 2010S-1 EMMA   JPMorgan
Sacramento Municipal Utility District Sacramento Municipal Utility District $450,000 Series 2009V, Series 2010W EMMA   BoA Securities
Trustees of Purdue University Trustees of Purdue University $100,705 Series Z-2 EMMA April 2  
City of Norfolk, Virginia City of Norfolk, Va. $117,650 Series 2010B EMMA May 6 BoA Securities
Department of Water and Power of the City of Los Angeles Department of Water and Power of the City of Los Angeles $316,000 Series 2010A EMMA    
State of Washington State of Washington $1,222,545 Series 2010D, Series 2010F EMMA, EMMA Week of March 25 Wells Fargo, JPMorgan, Ramirez
North Carolina Turnpike Authority North Carolina Turnpike Authority $208,060 Series 2010A EMMA    
New York State Environmental Facilities Corp. New York Municipal Water Finance Authority $156,415 Series 2010B EMMA    
Regents of the University of California Regents of the University of California $456,110 Series 2010F EMMA    
Maryland Transportation Authority Maryland Transportation Authority $676,135 Series 2010B, Series 2009B EMMA, EMMA    
Arizona Board of Regents Arizona State University $120,240 Series 2010A EMMA April 16  
City of Burbank, California City of Burbank, Calif. $60,000 Series 2010 EMMA Week of May 20, 2024 BofA Securities, Loop Capital
City of Burbank, California City of Burbank, Calif. $30,000 Series 2010B EMMA Week of May 13, 2024 JPMorgan, Stern Brothers
TOTAL DEBT TARGETED   $6,019,704        
Share this article:
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2024 Reorg Research, Inc. All rights reserved.
Thank you for signing up
for Reorg on the Record!