Yields end Friday unchanged; Los Angeles County brings downsized $1.3 billion sale of TRANs

By Sheri Kasprzak

New York, June 11 - Municipal yields were largely unmoved to round out the week after hitting a snag on Thursday, traders reported.

"It's been pretty quiet," said one trader reached in the early afternoon.

"Yields are really not where they should be to attract enough interest, but we did have some activity early on. It's tapered off a lot since then."

Meanwhile, Los Angeles County in California priced $1.3 billion in a downsized offering of series 2010-11 tax and revenue anticipation notes, said a pricing sheet. The deal was downsized from $1.5 billion.

One sellsider familiar with the deal said retail investors balked at the notes.

"Retail has really been absent from a lot of sales recently, and it looks to me like this might be the case in L.A.," the sellsider said.

"They just couldn't bring in the investors."

The notes were sold through Citigroup Global Markets Inc.

The notes are due June 30, 2011 with a 2% coupon priced at par.

Proceeds will finance capital expenditures, current expenses and the discharge of other obligations and debts during fiscal year 2010-2011.

LSU sells $115 million

In other pricing news, the Louisiana State University and Agricultural and Mechanical College brought $114.895 million in series 2010 auxiliary revenue and revenue refunding bonds (A1/AA-/), said a pricing sheet.

The sale included $87.625 million in series 2010A auxiliary revenue refunding bonds and $27.27 million in series 2010B Gulf Opportunity Zone auxiliary revenue bonds.

The 2010A bonds are due 2010 to 2020 with term bonds due 2023, 2025, 2029, 2032, 2035 and 2040. The coupons range from 2% to 5%. The 2023 bonds have a 5% coupon priced at 107.588. The 2025 bonds have a 5% coupon priced at 106.15, and the 2029 bonds have a 5% coupon priced at 103.343. The 2032 bonds have a 5% coupon priced at 101.893. The 2035 bonds have a 5% coupon priced at 101.099. The 2040 bonds have a split maturity. One of the bonds has a 4.75% coupon priced at 97.194. The other has a 5% coupon priced at 100.547.

The 2010B bonds are due 2012 to 2021 with term bonds due 2023, 2025, 2029, 2032, 2035 and 2040. The serial coupons range from 2% to 3.75%. The 2023 bonds have a 4% coupon priced at 99.297. The 2025 bonds have a 4.1% coupon priced at 98.455, and the 2029 bonds have a 4.375% coupon priced at 97.538. The 2032 bonds have a 5% coupon priced at 101.893. The 2035 bonds have a 5.25% coupon priced at 103.223. The 2040 bonds have a 4.75% coupon priced at 97.194.

Morgan Keegan & Co. Inc. was the senior manager.

Proceeds will be used to refund the university's series 2002 variable-rate bonds and construct, renovate, demolish and upgrade a variety of buildings at its Laville Honors College.

The university is based in Baton Rouge, La.

Illinois highway bonds price

Elsewhere during the week, the Illinois State Toll Highway Authority sold $279.3 million in a downsized offering of series 2010A-1 toll highway senior refunding revenue bonds, said a pricing sheet released Friday. The offering was downsized from $400 million.

The bonds were sold through Bank of America Merrill Lynch and Siebert Brandford Shank & Co. LLC.

The bonds are due 2018 to 2031 with coupons from 3.75% to 5.25%.

Proceeds will be used to refund existing debt.

Orlando road sale planned

Looking to the coming week's offerings, the Orlando-Orange County Expressway Authority of Florida plans to price $250 million in series 2010B refunding revenue bonds, said a preliminary official statement. The sale is set for Monday, according to a sales calendar.

The bonds (/A/A) will be sold on a negotiated basis with Bank of America Merrill Lynch as the senior manager.

The bonds are due 2011 to 2030.

Proceeds from the offering will be used to refund the authority's series 1998, 2008B-1 and 2008B-2 bonds.

The Orlando, Fla.-based authority operates and maintains the city and county's expressway system.

Kentucky deal ahead

Also in the coming week, the Turnpike Authority of Kentucky intends to bring $334.205 million in series 2010 economic development road revenue and revenue refunding bonds Tuesday, said a sales calendar.

The deal includes $148.64 million in series 2010A revenue and revenue refunding bonds and $185.565 million in series 2010B Build America Bonds.

The bonds will be sold through senior manager Goldman, Sachs & Co.

The 2010A bonds are due 2013 to 2020. The 2010B bonds are due 2021 to 2025 with a term bond due 2030.

Proceeds will be used to fund the authority's six-year highway revitalization plan and to refund existing debt.

Dallas sets sale

Also on Tuesday, the City of Dallas is scheduled to price $291 million in series 2010 waterworks system revenue refunding bonds, said a sales calendar.

The bonds (Aa1/AA/) will be sold through senior manager Siebert Brandford Shank.

Proceeds from the offering will be used to refund existing waterworks revenue bonds.

San Antonio to price

Another deal out of Texas comes from the City of San Antonio. The city is expected to price $241.26 million in series 2010 general improvement bonds on Tuesday, said a sales calendar.

The bonds will be sold through lead manager Citigroup.

The deal is comprised of $201.9 million in series 2010B Build America Bonds and $39.36 million in series 2010 combination tax and revenue certificates of obligation.

The 2010B bonds are due 2011 to 2030, and the 2010 certificates are due 2019 to 2040.

Proceeds will be used to finance improvements to streets, bridges, sidewalks, drainage systems, parks and recreation facilities, open space and athletics facilities and public health facilities.

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