UBS Dropped From $3.4 Billion Texas Muni Deal in Latest Blow

  • Texas named bank among firms it deems hostile to energy sector
  • Record Texas muni transaction may price as soon as Nov. 9
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UBS Group AG’s underwriting arm has been left out of the group that is poised to handle the biggest-ever municipal-bond transaction from Texas after the state listed the bank as one of the firms it considers to “boycott” the fossil-fuel industry.

Board members of the issuer, the Texas Natural Gas Securitization Finance Corp., announced a newly configured underwriting syndicate for the $3.4 billion transaction without UBS at a meeting on Thursday, according to Lee Deviney, executive director of the Texas Public Finance Authority, the state agency overseeing the sale.