Muni yields seen firmer; University of Texas System sells $331.42 million bonds; D.C. to price

By Sheri Kasprzak

New York, March 4 - Municipal yields were a touch lower on Thursday, traders reported, as the University of Texas System brought to market $331.415 million in revenue bonds.

"There's a firmer tone overall," said one trader.

"There's some decent activity out there. Yields are probably up 1, 2 basis points."

Among the trading action, Miami-Dade County's recently priced water and sewer revenue bonds were seen moving. The 5% 2026 bonds were seen at 3.894%.

Elsewhere, Indianapolis Local Public Improvement Bond Bank's bonds priced in February were seen trading. The 5% 2015s were trading at 2.3% Thursday afternoon.

In the primary market, the University of Texas System priced its series 2010A revenue finance system bonds (Aaa/AAA/AAA) through Wells Fargo Securities Inc. and Citigroup Global Markets Inc., said a pricing sheet.

The bonds are due 2012 to 2024 with 3% to 5% coupons.

Proceeds will be used to refinance a portion of the university system's commercial paper notes and finance campus improvements.

The university system is based in Austin, Texas.

D.C. plans $711.16 million deal

Looking out on the horizon, the District of Columbia is set to sell $711.16 million in series 2010 revenue and revenue refunding bonds, said a preliminary official statement.

The deal includes $696.005 million in series 2010A tax-exempt income secured revenue refunding bonds and $15.155 million in series 2010B federally taxable income secured revenue bonds.

The bonds (Aa2/AAA/AA) will be sold on a negotiated basis. Goldman, Sachs & Co. is the senior manager.

The 2010A bonds are due 2017 to 2031, and the 2010B bonds are due 2017.

Proceeds will be used to refund debt and to finance the termination of swap agreements related to the refunded bonds.

Massachusetts to price $538.86 million

Also coming up, the Commonwealth of Massachusetts plans to price $538.86 million in series 2010A Sifma index general obligation refunding bonds, said a preliminary official statement.

The bonds (Aa2/AA/AA) will be sold on a negotiated basis with Morgan Stanley & Co. Inc. as the senior manager.

The bonds are due 2011 to 2014.

Proceeds will be used to refund existing bonds.

Guilford County sale ahead

In other upcoming deals, the County of Guilford in North Carolina is expected to price $298.435 million in series 2010 G.O. public improvement bonds, said a preliminary official statement.

The offering includes $82.5 million in series 2010A G.O. public improvement bonds, $82.5 million in series 2010B Build America Bonds, $82.37 million in series 2010C G.O. refunding bonds and $51.065 million in series 2010D G.O. refunding bonds.

The bonds will be sold through lead managers Wells Fargo and BB&T Capital Markets.

The 2010A bonds are due 2011 to 2020, and the 2010B bonds are due 2021 to 2025 with a term bond due 2030. The 2010C bonds are due 2011 to 2023, and the 2010D bonds are due 2018 to 2022.

Proceeds will be used to fund capital improvements within the county and to refund existing bonds.

The county seat is Greensboro, N.C.

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