Municipal yields flat, still firm; Louisiana to price $405 million revenue bonds Tuesday

By Sheri Kasprzak

New York, Aug. 13 - Municipal bonds were largely unchanged on Friday but retained a firmer tone in the market, said a trader reached during the afternoon.

"There's not a lot going on today, but it feels firm out there," he said. "Yields are pretty flat."

Meanwhile, the coming week's primary action began stacking up.

The primary activity will be led by $405.3 million in series 2010B second-lien gasoline and fuel tax revenue bonds (Aa2/AA/) from the State of Louisiana. The offering is set to price Tuesday. A retail order period is scheduled for Monday.

Goldman, Sachs & Co. and Citigroup Global Markets Inc. are the senior managers

The bonds are due 2013 to 2030 with term bonds due 2035, 2040 and 2045.

Proceeds will be used to construct and maintain the New Florida Avenue Bridge and the Interstate 12 to Bush Highway project, also known as Louisiana Highway 3241.

New Mexico deal ahead

Out on the horizon, the New Mexico Educational Assistance Foundation is set to price $383 million in series 2010-1A education loan bonds, according to a preliminary official statement.

The offering includes $155 million in series 2010-1A-1 tax-exempt non-AMT fixed-rate bonds, $140 million in series 2010-1A-2 tax-exempt non-AMT Libor floating-rate bonds and $88 million in series 2010-1A-3 tax-exempt non-AMT Libor floating-rate bonds.

The 2010-1A-1 bonds are due 2011 to 2022. The 2010-1A-2 bonds are due Dec. 1, 2028. The 2010-1A-3 bonds are due Dec. 1, 2038.

The bonds (Aaa/AAA/) will be sold on a negotiated basis with Bank of America Merrill Lynch and RBC Capital Markets Corp.

Proceeds will be used to refund existing debt.

Kansas DOT sets sale

Also ahead during the coming week ,the Kansas Department of Transportation is expected to price $325 million in series 2010 revenue Build America Bonds on Wednesday, according to a sales calendar.

The bonds (Aa1/AAA/AA+) will be sold through Barclays Capital Inc.

The bonds are due 2035.

Proceeds will be used to finance projects under the department's 10-year capital plan.

Houston deal planned

In other upcoming offerings, the City of Houston is set to sell $229 million in series 2010C first-lien combined utility system revenue refunding bonds, according to a preliminary official statement.

The bonds (Aa2/AA/AA-) will be sold on a negotiated basis with RBC Capital Markets.

The bonds are due 2011 to 2019.

Proceeds will be used to refund and defease the city's outstanding series 1997E, 1999B-C and 2000A water and sewer system junior-lien revenue refunding bonds.

Ohio preps offering

Coming up on Tuesday, the Ohio Building Authority is expected to bring $202.35 million in series 2010 state facilities refunding bonds through Morgan Stanley & Co. Inc.

The sale is comprised of $72.15 million in series 2010A adult correctional building refunding bonds, $115.85 million in series 2010C administrative building fund projects refunding bonds and $14.35 million in series 2010D juvenile correctional building fund projects refunding bonds.

Proceeds will be used to refund bonds issued to finance administrative building, adult correctional building and juvenile correctional building projects.

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