Municipals end session firmer in spots; City of Denton, Texas, brings $63.52 million of COPs

By Sheri Kasprzak

New York, April 25 - Municipal yields were mostly unchanged on Thursday, but there was some spotty firmness, traders reported.

"There's not a great deal of movement today, but we are seeing spots that are a little firmer," a trader said in the afternoon.

Meanwhile, the 10-year AAA MMD index yield has remained unchanged at 1.7% for five straight sessions, said Alan Schankel, managing director with Janney Montgomery Scott LLC.

"The Investment Company Institute reports $698 million of outflows from municipal mutual funds in the week ending April 17," Schankel said Thursday.

"Inflows to muni funds are notably slower so far in 2013 compared to last year, with $8 billion of new money compared to $18 billion in the same period 2012."

Lubbock sells G.O. bonds

Among the new issues priced Thursday, the City of Lubbock, Texas, sold $131.22 million of series 2013 general obligation refunding bonds, said a pricing sheet.

The offering includes $42,075,000 of series 2013 G.O. refunding and improvement bonds, $39,705,000 of series 2013 taxable G.O. refunding bonds and $49.44 million of series 2013 tax and waterworks system surplus revenue certificates of obligation.

The 2013 G.O. refunding and improvement bonds are due 2013 to 2033 with 2% to 5% coupons.

The 2013 taxable G.O. bonds are due 2013 to 2021 with 0.25% to 3% coupons.

The COPs are due 2014 to 2026 with term bonds due in 2030 and 2033. The serial coupons range from 2% to 5%. The 2030 bonds have a 4% coupon and priced at 106.125, and the 2033 bonds have a 4% coupon and priced at 104.847.

The bonds (Aa2/AA+/AA+) were sold through First Southwest Co.

Proceeds will be used to purchase firefighting equipment, to make street improvements and to refund the city's series 2002A, 2004, 2005 and 2006 revenue and G.O. bonds.

Denton brings COPs

Amid the competitive offerings Thursday, the City of Denton, Texas, came to market with $63.52 million of series 2013 COPs, said a pricing sheet.

The bonds (/AA/AA+) were sold competitively. Raymond James/Morgan Keegan won the bid at a 2.79255% true interest cost, said Chuck Springer, the city's financial director.

The bonds are due 2014 to 2033 with 3% to 4% coupons.

"The city is not required to hold competitive sales," Springer said in an interview.

"It was our decision to hold this sale on a competitive basis."

Proceeds will be used to acquire vehicles and equipment for the city's solid waste disposal system, to acquire and construct extensions, for renovations and improvements to the solid waste system, to renovate existing municipal buildings, to acquire and replace heating, venting and air conditioning facilities, to construct and improve streets and traffic signals, to improve the city's waterworks and sewer system, to construct improvements to the city's electric light and power system and to pay all or a portion of the city's contractual obligations for professional services.

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