Muni yields better by 4 bps to 5 bps across curve on safer haven debt bid; deal calendar light

By Cristal Cody

Tupelo, Miss., July 23 - Municipal bond yields improved by 4 basis points to 5 bps across the curve in tandem with the rally in U.S. Treasuries on Monday as euro debt concerns drove the market.

"The new issue calendar is very light," a trader said late afternoon. "There was one deal sold competitively today, Fort Mill, South Carolina, that did very well. Tomorrow, we're going to have a few more deals to bid on, but it's very light. There's a lot of reinvestment money hanging around."

Fort Mill School District No. 4 of York County, S.C., sold about $47.91 million of general obligation advanced refunding bonds on Monday.

Another issue was expected from West Chester Area School District of Pennsylvania, which was scheduled to sell $57.62 million of series 2012 G.O. bonds competitively with Public Financial Management Inc. as the financial adviser, according to a preliminary official statement.

The deal included $21 million of series 2012A G.O. bonds due 2023 to 2032 and $36.62 million of series 2012B G.O. bonds due 2014 to 2022.

Pricing details were not immediately available.

Municipal bonds are expected to "grind higher" the rest of the week on the light calendar, a source said on Monday.

Nashville/Davidson County ahead

Coming up, the Metropolitan Government of Nashville and Davidson County of Tennessee plans to price $290 million in two tranches of refunding bonds (Aa1/AA/), according to a preliminary official statement.

The deal includes $55 million of series 2012A district energy system revenue and tax refunding bonds due 2013 through 2033 and $235 million of series 2012B G.O. refunding bonds due 2013 though 2027.

Piper Jaffray & Co. is the senior manager of the negotiated sale. The co-managers are Jefferies & Co., Raymond James/Morgan Keegan, Duncan-Williams, Inc., Siebert Brandford Shank & Co., LLC and U.S. Bancorp.

Proceeds will be used to refund the outstanding series 2002A district energy system revenue bonds and to advance refund certain maturities of the outstanding series 2005A G.O. bonds, series 2005 G.O. refunding bonds and series 2007A G.O. refunding bonds.

Johns Hopkins to price

An offering also is on the horizon from Maryland Health and Higher Educational Facilities, which plans to sell $169,655,000 of revenue bonds (Aa3/AA-/AA-) for Johns Hopkins Health System Obligated Group, according to a preliminary official statement.

The offering includes $84,605,000 of series 2012C bonds and $85.05 million of series 2012D bonds.

The bonds will price with an index floating-rate mode.

J.P. Morgan Securities LLC and Goldman Sachs & Co. are the managers of the negotiated sale.

Proceeds will be used to refund outstanding bonds.

Wake Forest plans $125 million

Also ahead, Wake Forest University in North Carolina is scheduled to price $125 million of taxable bonds, according to a preliminary offering memorandum.

The series 2012 bonds (Aa3/AA/) have serial maturities from 2024 through 2027 and term bonds due 2032 and 2042.

Wells Fargo Securities LLC and BB&T Capital Markets LLC will manage the negotiated sale.

Proceeds will be used to finance all or a portion of the cost of improvements and renovations to the university.

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