Municipals end session little changed; Maryland's Harford County prices $114.66 million

By Sheri Kasprzak

New York, Feb. 19 - Municipal yields were mostly unchanged in light trading action, traders reported.

Even though Treasuries were weaker in the afternoon, one trader said munis were mostly flat.

"It's been a quiet day, but there's some evidence that bonds around five years are a bit firmer," the trader said.

"It's a short week, and it's one with a lot coming up, so I think tomorrow and Thursday will be interesting. A lot depends on how new issues are received."

Despite the Presidents Day holiday on Monday, just under $7 billion of new offerings await investors this week, said Alan Schankel, adjusted from about $4 billion expected at the end of last week.

Schankel said the action will be led by a $520,935,000 offering from the Los Angeles Department of Water and Power. The deal will be priced through senior managers BofA Merrill Lynch and Morgan Stanley & Co. LLC.

Proceeds from the bonds (Aa3/AA-/AA-) will be used to refund the department's series 2003A revenue bonds.

Wisconsin hospitals deal ahead

Looking to upcoming offerings, the University of Wisconsin Hospital and Clinics Authority is gearing up to price $262,675,000 of series 2013A revenue bonds, said a preliminary official statement.

The bonds (Aa3/A+/) will be sold on a negotiated basis with J.P. Morgan Securities LLC and BofA Merrill Lynch as the lead managers.

The bonds are due 2014 to 2028 with term bonds due in 2033, 2038 and 2043.

"In the nonprofit health-care sector, a notable upgrade from Moody's is University of Wisconsin Hospitals and Clinics' bump to Aa3 from A1," Schankel said Tuesday.

"Moody's cited the system's role as the only academic medical center in Wisconsin, with growing market position and consistently strengthening financial performance."

Proceeds will be used to current refund the authority's series 2008A and 2009B-C revenue bonds as well as to construct, equip, renovate and furnish the authority's new acute and ambulatory care facility in Madison, Wis.

Harford brings $114.66 million

In primary action Tuesday, Harford County, Md., competitively sold $114.66 million of series 2013 general obligation bonds, said a pricing sheet.

The offering included $40 million of series 2013A G.O. bonds and $74.66 million of series 2013B G.O. refunding bonds.

The 2013A bonds are due 2014 to 2033 with 3% to 5% coupons.

The 2013B bonds are due 2014 to 2028 with 2% to 5% coupons.

The bonds (Aaa//AAA) were sold competitively with JPMorgan winning the bid for the 2013A bonds at a 2.515324% true interest cost and Citigroup Global Markets Inc. winning the bid for the 2013B bonds at a 1.956788% TIC, said Kathryn Hewitt, the county's treasurer.

Proceeds will be used to finance general county improvement projects and water and sewer projects and to refund debt.

"The gross savings is $5.6 million," Hewitt said.

"The county sells all new general obligation bond issues by competitive sale."

Intermountain prices

In the negotiated market, the Intermountain Power Agency of Utah sold $306.98 million of series 2013A subordinated power revenue refunding bonds, said a pricing sheet.

The bonds (A1/A+/AA-) were sold through JPMorgan and Morgan Stanley & Co. LLC.

The bonds are due 2014 to 2023 with 2% to 5% coupons.

Proceeds will be used to refund the agency's series 2003A revenue bonds.

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