Munis close out weaker again as demand wanes; Miami-Dade brings $247.6 million revenue bonds

By Sheri Kasprzak

New York, March 30 - Municipal yields closed out on a sour note yet again as demand lagged, market insiders reported.

"It's just painful to watch," said one trader.

"There's no shortage of bids wanted, but there's absolutely no demand. I think there probably is still a lot of panic in the market. Whether or not that has to do with global issues or just the fear of defaults is anyone's guess, but demand is gone."

A trader said that the middle of the curve took the worst of the hit Wednesday, with yields up 4 to 5 basis points.

Meanwhile, supply continued to trickle in, and the session included several competitive offerings.

Miami-Dade bonds price

On the negotiated side, the Sunshine State Governmental Financing Commission of Florida priced $247.6 million of series 2011A revenue bonds for Miami-Dade County, said a pricing sheet.

The bonds (Aa3/A+/) were sold through J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc.

The bonds are due 2011 to 2027 with coupons from 2% to 5.375%.

Proceeds will be used by Miami-Dade County to refinance some of its existing debt.

Anne Arundel sells bonds

Heading up Wednesday's competitive calendar, Anne Arundel County of Maryland brought $173.3 million of series 2011 general obligation bonds, said pricing sheets.

The offering included $125.7 million of series 2011 consolidated general improvement bonds and $47.6 million of series 2011 water and sewer bonds.

The 2011 consolidated general improvement bonds are due 2012 to 2031 with coupons from 3% to 5%.

The 2011 water and sewer bonds are due 2012 to 2033 with a term bond due in 2041. The serial coupons range from 2% to 5%. The 2041 bonds have a 5% coupon priced at 100.386.

The bonds were sold competitively, but calls to the issuer for the winning bidder were not immediately returned.

Proceeds will be used to retire the county's series A bond anticipation notes and fund improvements to the county's water system as well as general improvements.

The county seat is Annapolis.

Florida BOE brings PECO bonds

Elsewhere, the Florida Board of Education priced $173.045 million of series 2011B public education capital outlay bonds on Wednesday, said a pricing sheet.

Merrill Lynch was the winning bidder for the competitive offering.

The bonds (Aa1//AAA) are due 2013 to 2022 with 5% coupons across the board.

Proceeds from the sale will be used to refund existing PECO bonds.

North Texas road deal ahead

Looking out on the horizon, the North Texas Tollway Authority announced plans Wednesday to drive $1.029 billion of series 2011 revenue bonds and taxable bond anticipation notes to market in the near future. Pricing is reportedly expected in early April.

The offering includes $606.467 million of series 2011 special projects revenue bonds and $422.315 million of series 2011 taxable bond anticipation notes.

Citigroup Global Markets Inc. is the senior manager for the offering.

Proceeds will be used to make an upfront payment to the Texas Department of Transportation for the authority's right to own and operate an 11.5-mile toll stretch of State Highway 161 in western Dallas County extending from State Highway 183 to Interstate 20.

The authority is based in Dallas.

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