Municipal yields seen mostly unchanged; Chicago sells $793.28 million G.O. bonds; JEA prices

By Sheri Kasprzak

New York, Jan. 14 - Municipal yields were largely unmoved on Thursday amid decent primary activity, market insiders reported.

"We're mostly flat," said one trader reached in the afternoon.

"It feels a little firmer out there. Past 30 years, yields might be better by a basis point or so."

Meanwhile, primary action was dominated by the City of Chicago's $793.275 million sale of series 2009 taxable project general obligation bonds, said a pricing sheet.

The sale included $401.92 million in series 2009A refunding bonds, $159.855 million in series 2009B taxable refunding bonds, $98.32 million in series 2009C Build America Bonds and $133.18 million in series 2009D recovery zone economic development bonds.

Siebert Brandford Shank & Co. LLC was the senior manager.

The 2009A bonds are due 2018 to 2030 with 4% to 5% coupons. The 2009B bonds are due 2032 with a 6.207% coupon priced at par. The 2009C bonds are due 2036 with a 6.207% coupon priced at par. The 2009D bonds are due 2040 with a 6.257% coupon priced at par.

Proceeds will be used to finance public right-of-way infrastructure improvements, finance infrastructure improvements to encourage economic development, conduct transportation improvements and make grants to educational and nonprofit organizations as well as refund existing debt.

JEA sells $153.12 million

In other pricing news, JEA of Jacksonville, Fla., sold Thursday $153.115 million in an upsized offering of series 2010 water and sewer system revenue bonds, said a pricing sheet.

The bonds were sold through Barclays Capital Inc.

The sale included $83.115 million in series 2010A Build America Bonds, $24.22 million in series 2010B taxable bonds and $45.78 million in series 2010C tax-exempt bonds.

The 2010A bonds are due 2033 and 2044 with 6.21% and 6.31% coupons, respectively. Both bonds were priced at par.

The 2010B bonds are due 2012 to 2025 with 2.5% to 5.7% coupons, all priced at par.

The 2010C bonds are due 2012 to 2016 with term bonds due 2020 and 2040. The serials have 3.25% to 4% coupons. The 2020 bonds have a 5% coupon, but those bonds were not reoffered. The 2040 bonds have a 5% coupon priced at 99.217.

Proceeds will be used to construct, acquire, extend and improve Jacksonville's water and sewer system.

Clark County airport bonds planned

Looking to the coming week's offerings, Clark County in Nevada plans to bring to market $800 million in airport-related bonds. There are two offerings planned for Thursday, according to a sales calendar.

The county plans to price $450 million in series 2010 Las Vegas-McCarran International Airport passenger facility charge revenue bonds and $350 million in series 2010 subordinate lien revenue bonds.

The bonds (Aa3/A+/) will be sold on a negotiated basis with Citigroup Global Markets Inc.

Proceeds will be used to fund improvements to the Las Vegas airport.

Northeast Georgia Health bonds to price

Also coming up, the Northeast Georgia Health System plans to sell $630 million in series 2010 revenue bonds on Wednesday, said a sales calendar.

The bonds will be brought to market by Merrill Lynch & Co.

Proceeds will be used to refund the system's series 2007G and 2008B-H bonds.

The health system is based in Gainesville, Ga.

In California, the San Diego County Water Authority is set to price $500 million in series 2010 tax-exempt revenue bonds and Build America Bonds, said a sales calendar.

The bonds (Aa3/AA/AA+) will be sold on a day-to-day basis, but the pricing is expected during the week.

Citigroup is the lead manager.

Proceeds will be used to fund water and sewer improvements as well as refund existing debt.

Louisiana hospital sale ahead

In other upcoming deals, the Louisiana Local Government Environmental Facilities and Community Development Foundation is expected to sell $344.15 million in series 2010 hospital revenue bonds for Woman's Hospital on Thursday, said a sales calendar.

The sale includes $244.15 million in series 2010A bonds and $100 million in series 2010B gulf opportunity zone project revenue bonds.

The bonds (A3/BBB+/) will be sold through Bank of America Merrill Lynch.

The 2010A bonds are due 2018 to 2020 with term bonds due 2025, 2030, 2040 and 2044. The 2010B bonds are due 2040 and 2044.

Proceeds will be used to construct a five-story replacement hospital for Woman's Hospital in Baton Rouge.

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