Municipal yields hold tight; Alabama Water sells bonds; Tacoma, Wash., to sell $103.23 million

By Cristal Cody

Tupelo, Miss., Aug. 2 - Municipal yields started the week mostly unchanged, while one deal was brought to market on Monday.

"Muni yields were unchanged to slightly lower in very quiet trading," said Alan Schenkel, managing director at Janney Montgomery Scott LLC. "Munis outperformed Treasuries, which saw yield increases across the board."

A trader said municipals "held tight" on the day.

Alabama Water bonds price

The Alabama Water Pollution Control Authority priced its refunding bonds on Monday, but the pricing terms were not immediately available, a source said.

The authority was expected to price $63.39 million in series 2010B revolving fund loan refunding bonds (/AA-/) with serial maturities from 2012 through 2021.

Thornton Farish Inc. is the financial adviser on the sale.

The authority plans to use the proceeds to refund its outstanding series 1998A-B bonds.

Nassau County to sell

Meanwhile, few new deals for the primary market were announced on the first trading day of August.

"Slow Monday," the trader said.

The County of Nassau in New York announced its plans to bring $141.725 million in general obligation bonds (Aa3/A+/AA-) through a competitive sale but not until late August.

The sale includes $126.62 million in series 2010C bonds with serial maturities from 2012 through 2026 and $15.105 million in series 2010D Build America Bonds with serial maturities due in 2026 and 2027, according to a preliminary official statement.

The bonds will price via a competitive sale on Aug. 24, according to a notice of sale.

Public Financial Management, Inc. is the financial adviser.

Proceeds will be used to fund various public purposes, including payments to county employees, capital projects and judgments and settlements.

The county seat is Mineola, N.Y.

Tacoma to price bonds

But the City of Tacoma, Wash., intends to bring its offering of $103.225 million in water system revenue bonds (Aa2/AA/) much earlier, a source said.

The sale includes $29.575 million in series 2010A revenue and refunding bonds and $73.65 million in series 2010B Build America Bonds.

The series 2010A bonds have serial maturities from 2012 through 2023, and the series 2010B bonds have term maturities due in 2030 and 2040.

Citigroup Global Markets Inc. will manage the negotiated sale.

The bonds are expected to price Aug. 10, a source with the city said Monday.

Proceeds will be used to finance capital improvements to the water system and to refund outstanding bonds if interest rates are favorable, according to a statement.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.