Municipals end week unchanged; details emerge for Seattle's $833.7 million in revenue bonds

By Sheri Kasprzak

New York, May 14 - Municipal yields ended Friday mostly unchanged with a firmer tone as Treasuries improved somewhat, market insiders reported.

"It's reasonably quiet today, but that's been the story all week," said one trader.

"I'd call it unchanged. Out long, yields might be down by 1 basis point or so."

Meanwhile, the particulars were released Friday on the City of Seattle's $833.695 million in series 2010 municipal light and power revenue bonds. The bonds (Aa2/AA-/) priced on Thursday through Citigroup Global Markets Inc.

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 2010A bonds are due 2021 to 2027 with term bonds due 2030 and 2040. The coupons range from 4.447% to 5.247%, all priced at par. The 2030 bonds have a 5.47% coupon, priced at 99.955, and the 2040 bonds have a 5.57%, priced at 99.947.

The 2010B bonds are due 2011 to 2026 with coupons from 2% to 5%.

The 2010C bonds are due 2040 with a 5.59% coupon, priced at 99.875.

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

NYC finance sale ahead

Looking to the week's upcoming deals, the New York City Transitional Finance Authority plans to bring $1.14 billion in series 2010 future tax secured bonds on Tuesday, said a preliminary official statement.

The bonds will be sold on a negotiated basis with Bank of America Merrill Lynch as the senior manager.

The offering is comprised of $342 million in series 2010G-1 Build America Bonds, $78 million in series 2010G-2 Build America Bonds, $250 million in series 2010G-3 taxable qualified school construction bonds, $70 million in series 2010G-4 taxable subordinated bonds, $35 million in series 2010H tax-exempt subordinated bonds, $20 million in series 2010I-1 taxable subordinated bonds and $345 million in series 2010I-2 tax-exempt subordinated bonds.

The maturities have not been set.

Proceeds will be used to construct, renovate, rehabilitate and repair public school facilities as well as refund existing debt.

The authority provides funding for the city's capital program.

Pennsylvania plans $1 billion

In other offerings, the Commonwealth of Pennsylvania is expected to bring to market $1 billion in second series 2010 general obligation bonds on Wednesday, said a preliminary official statement.

The bonds will be sold competitively with Public Financial Management Inc. as the financial adviser.

The offering included $451.1 million in series 2010A tax-exempt bonds and $548.9 million in series 2010B Build America Bonds.

The 2010A bonds are due 2011 to 2021, and the 2010B bonds are due 2022 to 2030.

Proceeds from the sale will be used to fund open space initiatives; the construction, renovation and rehabilitation of capital projects; and the renovation of water supply and sewer systems.

Louisville sewer deal planned

Also coming up, the Louisville and Jefferson County Metropolitan District of Kentucky plans to bring to market $226.34 million in series 2010A sewer and drainage system subordinated bond anticipation notes on Wednesday, said a preliminary official statement.

The bonds (MIG 1/SP-1+/F1+) will be sold on a competitive basis with First American Municipals Inc. as the financial adviser.

The bonds are due May 26, 2011.

Proceeds will be used to retire the district's series 2009A bonds, which were used to refund series 1999A revenue bonds.

The district operates the sewer and drainage system of the City of Louisville and Jefferson County in Kentucky.

Washington plans sale

Out on the horizon, the State of Washington plans to price $1.1 billion in series 2010F motor vehicle fuel tax G.O. bonds, said a preliminary official statement.

The bonds (Aa1/AA+/AA+) will be sold on a negotiated basis with J.P. Morgan Securities Inc. as the senior manager.

Proceeds from the deal will be used to reimburse the state for highway and transportation improvements, including improvements to Interstate 5 in Tacoma, Wash., Interstate 405 in Bellevue, Wash., and U.S. Route 395 in Spokane, Wash.

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