Municipal yields fall by as much as 3 bps; Metro Boston Transit Parking brings $304.23 million

By Sheri Kasprzak

New York, June 7 - Municipal yields hit a rough patch on Tuesday as a new crop of offerings priced and Treasuries dropped, market insiders reported.

"In the middle, we're probably up 3 bps," said one trader.

"Long and short, there's spotty weakness but mostly flat. It's really the middle of the curve that's taking the worst of it."

The trader noted that the market is experiencing more primary volume than it has in a long time and that Tuesday's weakness may be a result of the market digesting the new offerings.

Heading up Tuesday's new deals, the Metropolitan Boston Transit Parking Corp. came to market with $304.23 million of series 2011 systemwide senior lien parking revenue bonds, said a pricing sheet.

The bonds (A1/A+/) were sold through Citigroup Global Markets Inc.

The bonds are due 2022 to 2031 with term bonds due in 2033, 2036 and 2041. The serial coupons range from 4% to 5%. The coupon is 5.25% for the 2033 and 2036 bonds and 5% for the 2041 bonds.

Proceeds will be used to refund existing debt.

Riverside brings TRANs

Also on Tuesday, a large number of tax and revenue anticipation notes were priced. The sales were led by Riverside County, Calif., which brought $250 million of series 2011-12 TRANs.

The offering included $125 million of series 2011-12A notes and $125 million of series 2011-12B notes, said a pricing sheet.

The notes (MIG 1/SP-1+/) were sold on a negotiated basis with De La Rosa & Co. Inc. as the senior manager.

The 2011-12A notes are due March 30, 2012, and have a 2% coupon priced at 101.297. The 2011-12B notes are due June 29, 2012, and have a 2% coupon priced at 101.665.

Proceeds will be used to fund expected capital requirements ahead of the collection of taxes and other revenues.

Kern sells TRANs

Another TRANs deal came out of Kern County, Calif. The county sold $200 million of series 2011-12 TRANs, said a pricing sheet.

The notes (/SP-1+/) were sold competitively with Bank of America Merrill Lynch winning the bid. The true interest cost was 0.27645%.

The notes are due June 29, 2012, and have a 3% coupon priced at 102.709.

Proceeds will be used to meet the county's general fund expenditures for the coming fiscal year ahead of the collection of taxes and revenues.

Orange TRANs price

Elsewhere, Orange County, Calif., priced $150 million of series 2011-12 TRANs, said a pricing sheet.

The offering included $44.265 million of notes due March 15, 2012, $44.12 million of notes due May 15, 2012, and $61.615 million of notes due June 29, 2012.

The coupon is 2% for all of the notes. The March 2012 notes priced at 101.239. The May 2012 notes priced at 101.514. The June 2012 notes priced at 101.715.

The notes (MIG 1/SP-1+/) were sold through De La Rosa.

Proceeds will be used to finance cash flow requirements ahead of the collection of taxes and revenues.

New York sells G.O. bonds

In other news, the City of New York came to market Tuesday with $130 million of series 2011J taxable general obligation bonds, said a pricing sheet.

The offering included $30 million of series 2011J-1 bonds and $100 million of series 2011J-2 bonds.

Morgan Stanley & Co. Inc. won the competitive bid.

The 2011J-1 bonds are due 2013 to 2016 with 0.87% to 2.17% coupons, all priced at par. The 2011J-2 bonds are due 2017 to 2026 with coupons from 2.68% to 4.4%, all priced at par.

Proceeds will be used to fund capital requirements for the city.

Thruway deal ahead

Looking to upcoming offerings, the New York State Thruway Authority plans to price $408.775 million of series 2011A second general highway and bridge trust fund bonds, said a preliminary official statement.

The bonds will be sold on a negotiated basis with Citigroup and Ramirez & Co. Inc. as the lead managers.

The bonds are due 2012 to 2031.

Proceeds will be used to fund projects included in the authority's multi-year highway and bridge capital plan.

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