By Stephanie Kelly
NEW YORK, Oct 6 (Reuters) – A $2.57 billion North Texas roadway deal dominates U.S. municipal bond and note issuance next week, resulting in a larger-than-usual Columbus Day holiday week calendar, according to Thomson Reuters data.
North Texas Tollway Authority is the largest issuer in next week’s expected $8 billion of municipal debt issuance. The authority expands roadways around areas including Dallas County and Grayson County in Texas.
“Dallas is a growing area,” said Alan Schankel, a managing director at Janney Montgomery Scott. “The economy has been reasonably strong.
Low gas prices and increased traveling with the recession further and further behind us has helped toll roads in general, and this one specifically is in good shape.”
The deal, issuing system revenue and refunding bonds, will be made up of $1.79 billion of first-tier bonds and $776.6 million of second-tier bonds, according to the preliminary official statement dated Sept. 22.
The first-tier bonds are rated A1 by Moody’s Investors Service and A by S&P Global Ratings, while the second-tier bonds are rated A2 and A-minus by the firms, respectively, according to the statement.