CHICAGO, Feb 23 (Reuters) – Debt sales for airports in Houston and Los Angeles are part of $5.43 billion in bonds and notes set to hit the U.S. municipal market next week, according to Thomson Reuters estimates on Friday.
Houston’s new and refunding subordinate lien deal includes about $135 million of bonds subject to the alternative minimum tax (AMT) with serial maturities from 2019 through 2041 and a term bond due in 2043, according to the preliminary official statement. Another $300 million of non-AMT bonds carry serial maturities from 2019 through 2038 and term maturities in 2043 and 2048.
Bank of America Merrill Lynch is scheduled to price the bonds on Thursday.
Los Angeles will sell nearly $376 million of subordinate revenue bonds subject to the AMT for its international airport through Barclays Capital on Wednesday.
The airport is “one of the stronger U.S. airport credits with solid enplanement growth and diversified airline exposure,” Janney Investment Strategy Group said in a Friday report. It added that the airport has a high debt burden at $5 billion and a $4.4 billion capital funding plan through 2023.
Goldman Sachs & Co will price about $650 million of gas prepayment revenue bonds for Alabama-based Black Belt Energy.
The New York State Thruway Authority has a $600 million general revenue refunding bond issue structured with serial maturities from 2019 through 2037. RBC Capital Markets will hold a retail order period for the bonds on Wednesday ahead of formal pricing on Thursday.
Topping the week’s calendar of competitively bid deals is a nearly $287 million Wisconsin general obligation bond issue selling on Wednesday.
The bonds have maturities from 2019 through 2036.
Municipal bond fund flows reversed course and turned positive in the latest week, according to Lipper. Net inflows totaled $347.4 million for the week ended Feb. 21 versus $443.4 million of net outflows in the previous week. (Reporting by Karen Pierog; Editing by Jeffrey Benkoe)