Municipal yields hold steady; Seattle brings $833.7 million in municipal light and power bonds

By Sheri Kasprzak

New York, May 13 - Municipal yields were largely unchanged on Thursday as investor interest in the secondary side continued to struggle.

"It feels firmer out there, but yields are flat for the most part," said one trader.

"We're seeing some stuff trading, but compared to even a week ago, it is extremely slow."

Meanwhile, primary action dominated the day's activity, led by an $833.695 million sale of revenue bonds from the City of Seattle.

The city brought to market series 2010 municipal light and power revenue bonds (Aa2/AA-/) through Citigroup Global Markets Inc.

The full details were not immediately available.

The sale included $181.625 million in series 2010A Build America Bonds, $638.795 million in series 2010B refunding and improvement bonds and $13.275 million in series 2010C economic recovery bonds.

The 2010B bonds are due 2011 to 2026 with coupons from 2% to 5%. The details for the 2010A and 2010C bonds were not available.

Proceeds will be used to finance capital improvements and refund debt.

Hurricane bonds price

Meanwhile, the Florida Hurricane Catastrophe Fund sold $675.92 million in series 2010A revenue bonds, said a pricing sheet.

The bonds (Aa3/AA-/AA) were sold on a negotiated basis with J.P. Morgan Securities Inc. as the lead manager.

The bonds are due 2015 to 2016 with 3.5% to 5% coupons.

Proceeds from the sale will be used to pay claims to participating insurance companies for losses resulting from a string of hurricanes that hammered the Southeast in 2005.

The fund, based in Tallahassee, is a tax-exempt state trust fund established in 1993 to reimburse insurers for catastrophic hurricane losses.

Stamford Hospital sells bonds

On Wednesday, the Connecticut Health and Educational Facilities Authority priced $132.99 million in series 2010-I revenue bonds for Stamford Hospital, according to a term sheet. The offering was upsized from $104.56 million of the bonds.

The bonds (/A/) were sold through Goldman, Sachs & Co.

The bonds are due 2011 to 2021 with term bonds due 2024 and 2030. Coupons range from 3.75% to 5%.

Proceeds will be used to finance and refinance renovations and additions to existing hospital facilities.

Located in Hartford, the authority assists qualified health-care systems, nursing homes, educational institutions and child-care providers finance projects. The hospital is located in Stamford.

Dasny sets sale

Looking to upcoming sales, the Dormitory Authority of the State of New York is set to price $341.44 million in series 2010 school districts revenue bond financing program revenue bonds, said a preliminary official statement.

The offering includes $260.075 million in series 2010A bonds (A1/A+/A+), $54.19 million in series 2010B bonds (A2/A+/A+), $22.705 million in series 2010C bonds (A1/A+/A+) and $4.47 million in series 2010D bonds (A3/A+/A+).

The bonds will be sold on a negotiated basis with Roosevelt & Cross Inc., Jefferies & Co. and RBC Capital Markets Corp. as the senior managers.

Proceeds will be used to finance school district capital costs and equipment purchase costs as well as to refinance some school district bond anticipation notes.

The Albany-based authority provides financing for a variety of qualified entities throughout the state.

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