Municipal yields little moved as major wave of deals price; Wisconsin brings $410.25 million

By Sheri Kasprzak

New York, April 23 - Municipals were mostly unchanged to close out the session Tuesday as new-issue pricing dominated the day's activity, market sources reported.

"There's not a lot of movement overall. The focus is really on primary," said a trader in the afternoon.

"I don't necessarily think there's a supply issue just yet, but there has been some preliminary indication that demand is tapering. It's really a seasonal thing, and I can't imagine that it's indicative of any sort of trend, other than this happens almost every year."

Another trader reached earlier in the session said that trading was steady early on, with some names trading firmer.

Wisconsin brings G.O.s

Heading up the day's action, the State of Wisconsin hit the market with one of the larger deals of the week.

The state sold $410.25 million of series 2013A general obligation bonds. The offering was downsized from $434,525,000.

The bonds were sold competitively, and are due 2014 to 2020 and 2023 to 2033 with 2% to 5% coupons.

The state intends to use the proceeds from the deal to acquire, construct, develop, extend, enlarge and improve land, water, property, highways, buildings, equipment or facilities for public purposes.

Another competitive deal out of Wisconsin also came to market Tuesday. The City of Milwaukee, Wis., offered $191,605,000 of series 2013 general obligation promissory notes and G.O. corporate purpose bonds, said a pricing sheet.

Offering in three tranches

The deal included $100 million series 2013-R1 G.O. cash flow promissory notes, $76,285,000 of series 2013-N2 G.O. promissory notes and $15.32 million series 2013-B3 G.O. corporate purpose bonds.

The 2013-R1 notes are due Dec. 5, 2013, and have a 1.75% coupon priced at 100.899. The 2013-N2 notes are due 2014 to 2023 with 5% coupons. The 2013-B3 bonds are due 2024 to 2030 with 3% to 5% coupons.

The notes and bonds (/AA/SP-1+/) will be used to finance capital improvements in the city and refund existing G.O. debt.

San Antonio deal ahead

On Wednesday's negotiated calendar, the City of San Antonio plans to price $74.3 million of series 2013 municipal drainage utility system revenue bonds (Aa2//AA).

Stifel, Nicolaus & Co. is the senior manager for the deal.

Proceeds will be used to refund the city's series 2003 and 2005 bonds for savings.

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