Yields flat; Wake County, N.C., sells $421.72 million bonds; Michigan to price $229.01 million

By Cristal Cody

Tupelo, Miss., April 29 - Traders lamented another quiet, tame municipal market on Thursday with the primary slowing down to a near halt.

"It's a quiet day going into Friday," a trader said. "Yields remained unchanged on trading. Most people had the same thought process - there wasn't enough activity to show any significant lowering and raising of yields."

Meanwhile, a couple of deals priced on Thursday, including the $421.72 million offering of general obligation refunding bonds from Wake County, N.C., according to a source.

"Citigroup bought it, but I think there's some balance left over. The long end looks like it's not being reoffered, so hopefully that would indicate it had been pre-sold," the source said.

Additional pricing terms were not immediately available.

The bonds originally were scheduled to price thorough a competitive sale on Wednesday.

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

Waters and Co. LLC was 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.

Lower Colorado prices

In addition, the Lower Colorado River Authority in Texas was expected to sell $200 million of refunding and improvement revenue bonds on Thursday.

Morgan Stanley & Co. Inc. is the senior manager of the negotiated sale of the series 2010 transmission contract refunding and improvement revenue bonds (A2/A/A+).

The bonds have serial maturities from 2012 through 2018 and 2021 and term bonds due 2025, 2030 and 2040.

Proceeds will be used to finance construction, renovation and improvement of generation facilities, as well as refund existing tax-exempt transmission contract revenue notes.

The authority is based in Austin, Texas.

"A couple of new issues priced with some balances left over, but overall it was a tame trading day," the trader said.

Michigan State deal ahead

Meanwhile, issuers announced a couple of new deals for the month ahead.

The Board of Trustees of Michigan State University plans to sell $229.01 million in general revenue refunding bonds, according to a preliminary official statement.

The series 2010C bonds (Aa2/AA/) have serial maturities from 2011 through 2025 and 2034 through 2044.

Bank of America Merrill Lynch is the senior manager of the negotiated sale.

Proceeds will be used to refund and retire $117 million of the board's series A commercial paper notes and a portion of the outstanding variable-rate bonds.

San Francisco BART to sell

Also, the San Francisco Bay Area Rapid Transit District intends to sell $131.375 million in sales tax revenue bonds on Wednesday, according to a notice of sale.

The refunding series 2010 bonds (/AA+/AA) have serial maturities from 2011 through 2019.

The bonds will price through a competitive sale.

KNN Public Finance is the financial adviser.

Proceeds will be used to refund a portion of the $145.45 million outstanding principal from the series 1998 sales tax revenue bonds.

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