Municipals flat; Wake County, N.C., postpones sale; California Water to sell $2 billion bonds

By Cristal Cody

Tupelo, Miss., April 28 - Municipal yields were mostly flat on Wednesday as Treasuries widened on the day, sources told Prospect News.

"It was pretty much unchanged," a trader said. "We dropped off a basis point according to MMD. We had bumps, but overall it's pretty positive. With Treasuries falling off like they did and munis staying the same, that's a pretty good day."

Wake County deal delayed

In primary activity on Wednesday, Wake County, N.C., postponed its competitive sale of $421.72 million in general obligation refunding bonds, according to a source.

Additional information was not immediately available.

The series 2010C bonds (Aaa/AAA/AAA) have serial maturities from 2013 through 2026.

Waters and Co. LLC is the financial adviser.

Proceeds will be used to refund the county's series 2003A-B, 2004, 2005, 2007 and 2009A bonds.

The county seat is Raleigh, N.C.

California Water to price

The primary market has been unusually quiet for the week, according to sources.

"There's not a whole lot of issuance this week," said Tom Kozlik, vice president of Janney Capital Markets LLC.

But one large offering is ahead. The State of California Department of Water Resources announced plans to price $2 billion in power supply revenue bonds on May 5, according to a state sale calendar.

"That's a pretty big issue," Kozlik said. "Issuance was pretty light this week, so whenever that one comes, it'll probably lead the week. Especially if it's a week like we've had this week."

The issuer plans to first sell the series 2010L bonds (Aa3/AA-/AA-) through a retail order period on Monday and Tuesday, according to the sale calendar.

The bonds have serial maturities from 2011 though 2022, according to a preliminary official statement.

The senior managers of the negotiated sale are Morgan Stanley & Co. Inc., E.J. De La Rosa & Co., Inc. and J.P. Morgan Securities Inc.

The proceeds will be used to refund outstanding fixed-rate and variable-rate bonds.

Baycare Health bonds ahead

Also ahead, the City of Tampa, Fla., plans to price $200.255 million revenue bonds for Baycare Health System, according to a preliminary official statement.

The series 2010 bonds (Aa3//AA-) will be sold through a negotiated sale brought by senior manager Morgan Stanley.

Proceeds will be used to refund the city's outstanding series 1998A1 Catholic Health revenue bonds.

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