Munis hold steady; Florida Department of Transportation brings $251.08 million revenue bonds

By Sheri Kasprzak

New York, June 8 - After some struggles on Monday and early Tuesday, municipal yields leveled off and ended the day largely unmoved, traders reported. Primary action continued to dominate investor interest, one trader said.

"It is really tough," he said. "Yields, right now, are a bit too high, I think. If we can just come down a little bit, we might get some interest [in secondary], but for now, everyone wants to invest in new money, and there's plenty of it out there."

Speaking of new money, the Florida Department of Transportation offered up $251.08 million in series 2010B turnpike revenue bonds, according to a pricing sheet.

The bonds (Aa3/AA-/AA-) were sold competitively with Wells Fargo Securities LLC winning the bid.

The bonds are due 2011 to 2031 with term bonds due 2033, 2035, 2037 and 2040. Coupons range from 2% to 5%. The 2033 bonds have a 5% coupon and priced at 103.598. The 2035 bonds have a 5% coupon and priced at 102.988. The 2037 bonds have a 4.5% coupon and priced at 97.25. The 2040 bonds have a 5% coupon and priced at 102.554.

Proceeds from the offering will be used to finance improvements to the state's turnpike system.

Nassau sells $125 million

Also in competitive action Tuesday, Nassau County, N.Y., priced $125 million in a downsized offering of series 2010 revenue anticipation notes, said a pricing sheet. The county had intended to sell $210 million.

The notes (MIG 1/SP-1+/F1+) were sold competitively. Citigroup Global Markets Inc., Loop Capital Markets LLC and Janney Montgomery Scott LLC won pieces of the series 2010A notes, and Janney Montgomery Scott took the series 2010B notes. Public Financial Management Inc. was the financial adviser.

The offering included $45 million in series 2010A notes and $80 million in series 2010B notes.

The 2010A notes are due March 15, 2011, have a 1.25% coupon and priced at 100.62. The 2010B notes are due April 15, 2011, have a 1.25% coupon and priced at 100.656.

Proceeds will be used to fund capital requirements ahead of the collection of certain county revenues.

The county seat is Mineola, N.Y.

Denver plans sale

Looking to Wednesday's schedule of offerings, the City and County of Denver plans to price $349.965 million in series 2010 Better Denver bonds, said a notice of sale.

The offering includes $37.91 million in series 2010A tax-exempt general obligation Better Denver bonds and $312.055 million in series 2010B Better Denver Build America Bonds.

The 2010A bonds are due 2011 to 2016, and the 2010B bonds are due 2017 to 2030.

The bonds (Aaa/AAA/AAA) will be sold competitively with Piper Jaffray & Co. as the financial adviser.

Proceeds will be used to fund infrastructure projects, including repairs and renovations to hospital facilities, improvements to city and county libraries, the restoration of roads and sidewalks, the refurbishment of parks and recreation facilities and maintenance for public buildings.

L.A. school sale ahead

In other upcoming offerings, the Los Angeles Unified School District is expected to price $540 million in series 2010-11A tax and revenue anticipation notes, said a preliminary official statement.

The notes will be sold through senior managers Bank of America Merrill Lynch and Piper Jaffray.

The notes are due June 30, 2011.

The district plans to use the proceeds to finance capital requirements and its workers' compensation fund ahead of the collection of taxes and revenues.

Massachusetts preps sale

Also coming up, the Massachusetts School Building Authority plans to bring to market $151 million in series 2010A subordinated dedicated sales tax bonds, said a preliminary official statement.

The bonds will be sold on a negotiated basis with Barclays Capital Inc. and Jefferies & Co. as the lead managers.

The bonds are due 2010 to 2027.

Proceeds will be used to fund grants to cities, towns and school districts for school construction and renovation projects.

The authority, based in Boston, provides financing for school construction throughout the state.

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