Municipals close flat to firmer; Port Authority of New York and New Jersey brings $300 million

By Sheri Kasprzak

New York, Jan. 27 - Municipals were mostly unchanged to a touch firmer on Thursday as investors turned their attention to a slightly more active primary calendar, said traders reached during the session.

"In spots, we might be better by a basis point," said one trader.

"Otherwise, we're pretty flat. It's been quiet [in secondary]. There's something for investors to focus on in primary for a change, so that's where most folks are today. It's really be a slow day overall."

Amid that primary action was the Port Authority of New York and New Jersey's sale of $300 million of 166th series consolidated bonds.

The bonds (Aa2//AA-) were sold competitively with J.P. Morgan Securities LLC winning the bid. The true interest cost came in at 5.191258%, said Steve Chapman, spokesman for the authority, in a statement.

The bonds are due 2030 to 2033 with term bonds due 2036 and 2041. The serial coupons range from 5% to 5.25%. The 2036 bonds have a 5.25% coupon priced at 101.543, and the 2041 bonds have a 5% coupon priced at 96.977, said a term sheet.

Proceeds will be used to fund capital projects and refund debt.

Dasny sells Columbia bonds

Also during the day, the Dormitory Authority of the State of New York priced $275 million of series 2011A revenue bonds for Columbia University, said a pricing sheet.

The bonds (Aaa/AAA/) were sold through Morgan Stanley & Co. Inc., Bank of America Merrill Lynch and JPMorgan.

The bonds are due 2017 to 2023 with term bonds due in 2041. Serial coupons range from 3% to 5%. The 2041 bonds have a split maturity with a 4.8% coupon priced at 98.808 and a 5% coupon priced at 100.983.

The university, which is located in New York City, intends to use the proceeds to design, construct and install various improvements and upgrades.

Newport Beach brings bonds

On the other coast, the City of Newport Beach, Calif., brought $105.39 million of series 2011A revenue bonds for the Hoag Memorial Hospital Presbyterian, said a pricing sheet.

The bonds (Aa3/AA/) were sold through Citigroup Global Markets Inc. and JPMorgan.

The bonds are due 2012 to 2021 with term bonds due in 2030 and 2040. Serial coupons range from 3% to 5%. The 2030 bonds have a 5.875% coupon priced at 99.7, and the 2040 bonds have a 6% coupon priced at 99.03.

Proceeds will be used to fund various capital projects and refund the hospital's series 2009 put bonds.

Cobb schools price notes

Down South, the Cobb County School District of Georgia sold $62 million of series 2011 short-term school construction notes, said a pricing sheet.

The bonds (MIG 1) were sold competitively. Barclays Capital Inc. won the bid.

The bonds are due Dec. 29, 2011 and have a 1.5% coupon to yield 0.38%.

Proceeds will be used to finance capital outlay disbursements until special local option sales tax revenues are received.

The district is based in Marietta.

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