Municipal yields climb along with weaker Treasuries; Princeton University brings $250 million

By Sheri Kasprzak

New York, Jan. 20 - Municipal yields were seen higher on Wednesday as Treasuries continued to experience weakness.

"We just can't catch a break," said one trader.

"Yields are up by about 3 or 4 basis points over the yield curve. We're pretty much following Treasuries again."

Meanwhile, the New Jersey Educational Facilities Authority priced $250 million in series 2010B revenue bonds for Princeton University, said a pricing sheet.

One market source who has been following the deal said he felt the pricing came in at expected levels.

"You know, we really expected it to do well, as Princeton bonds have traditionally done," he said.

"There were no big surprises here. It's got the rating and the reputation, so they always get decent pricing."

The bonds (Aaa/AAA/) were sold on a competitive basis, but the full details were not immediately available.

The bonds are due 2012 to 2035 with a term bond due 2040. The serials have coupons from 4% to 5.25%. The 2040 bonds have a 4.25% coupon priced at 97.494.

Proceeds will be used to fund the maintenance of the university's facilities and the renovation of university buildings.

Clark County to sell $800 million

Coming up on Thursday, Clark County in Nevada is expected to price $800 million in series 2010 airport bonds.

The offering includes $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 (Aa2//A).

The bonds will be sold through Citigroup Global Markets Inc.

Proceeds from the sale will be used to fund airport improvements.

Also coming up Thursday, the Louisiana Local Government Environmental Facilities and Community Development Foundation is scheduled to bring $344.15 million in series 2010 hospital revenue bonds (A3/BBB+/) through Bank of America Merrill Lynch.

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

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

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

Southern California power deal ahead

Looking out on the horizon, the Southern California Public Power Authority plans to bring to market $235.915 million in series 2010-1 Milford Wind Corridor Phase I project revenue bonds, said a preliminary official statement.

The bonds (A1/AA-/) will be sold on a negotiated basis with Barclays Capital Inc. as the senior manager.

The bonds are due 2011 to 2030.

Proceeds will be used to fund the prepayment of a supply of electricity from the Milford Wind Corridor.

Virginia Housing Development to price

Also coming up, the Virginia Housing Development Authority is expected to price $107.33 million in series 2010A non-AMT mortgage bonds, said a preliminary official statement.

The bonds (Aa1/AA+/) will be sold through senior manager Morgan Keegan & Co. Inc. The co-managers include BB&T Capital Markets Inc., Davenport & Co. LLC, Merrill Lynch & Co., Raymond James & Associates Inc. and Wells Fargo Securities Inc.

The bonds are due 2011 to 2021.

Proceeds will be used to fund mortgage loans.

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