Yields unchanged to slightly firmer; District of Columbia brings $709.3 million revenue bonds

By Sheri Kasprzak

New York, March 10 - Municipals were seen largely unchanged with yields firmer in spots, market insiders reported. Meanwhile, primary action was dominated by a $709.3 million sale of bonds from the District of Columbia.

"It's fairly quiet," one trader said.

"We're mostly unchanged, but in spots, you'll probably find yields down by 1, maybe even 2, basis points."

In trading news Wednesday, the Florida Board of Education's recently priced lottery revenue bonds were moving. The 5% 2015 bonds were seen at 2.292%.

Elsewhere, the Dormitory Authority of the State of New York's mental health bonds that priced last week were also trading. The 6.25% 2031s were trading at 4.65%.

D.C. sells $709.3 million

In primary action, the District of Columbia brought $709.3 million in series 2010 revenue and revenue refunding bonds, said a sellside source familiar with the deal.

The bonds (Aa2/AAA/AA) were sold through lead manager Goldman, Sachs & Co.

The deal included $695.2 million in series 2010A tax-exempt refunding bonds and $14.1 million in series 2010B revenue bonds.

The 2010A bonds are due 2017 to 2031 with 3% to 5% coupons and yields from 2.5% to 4.27%.

The 2010B bonds, which are due 2017, were not reoffered.

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

Guilford County brings $298.44 million

In other primary activity, Guilford County in North Carolina sold Wednesday $298.435 million series 2010 general obligation public improvement bonds, said term sheets.

The bonds were sold on a negotiated basis with Wells Fargo Securities Inc. and BB&T Capital Markets as the lead managers.

The sale included A, B, C and D tranches.

The 2010A bonds are due 2011 to 2020 with 3% to 5% coupons, and the 2010B bonds are due 2021 to 2028 with a term bond due 2030. The serial 2010B bonds have 4.541% to 5.361% coupons, all priced at par, and the 2030 bonds have a 5.641% coupon, priced at par. The 2010C bonds are due 2011 to 2023 with 2.5% to 5% coupons. The 2010D bonds are due 2018 to 2022 with 4% to 5% coupons.

Proceeds will be used to fund a variety of capital improvements within Guilford County as well as refund existing bonds.

The county seat is Greensboro, N.C.

U of North Carolina bonds price

Elsewhere, the University of North Carolina sold $132.72 million in series 2010 system pool revenue bonds on Wednesday, said a pricing sheet.

The sale included $20.11million in series 2010A pool bonds for East Carolina University (Aa3/AA-/), $44.49 million in series 2010B-1 pool bonds for Appalachian State University and the University of North Carolina at Charlotte (A1), $9.475 million in series 2010B-2 bonds for the University of North Carolina at Greensboro (A1), $37.985 million in series 2010C bonds for the University of North Carolina at Asheville and Wilmington (Aa3/A2/AAA/) and $20.66 million in series 2010D Build America Bonds for the University of North Carolina at Wilmington (A2).

The 2010A bonds are due 2011 to 2029 with 2% to 5% coupons. The 2010B-1 bonds are due 2010 to 2030 with term bonds due 2025 and 2035 with 3% to 5.25% coupons. The 2010B-2 bonds are due 2012 to 2026 with 3.25% to 5.25% coupons. The 2010C bonds are due 2011 to 2026 with 2.5% to 5.25% coupons. The 2010D bonds are due 2030 and 2039. The 2030 bonds have a 6.627% coupon, priced at par, and the 2039 bonds have a 6.727% coupon, also priced at par.

In secondary action, the Asheville/Wilmington bonds were seen moving. The 3.625% 2023s were seen at 3.702% in the afternoon.

The senior manager was Wells Fargo.

Proceeds will be used to make loans to campuses for improvements.

Chicago Transit sale ahead

Looking to upcoming offerings, the Chicago Transit Authority plans to bring $550 million in series 2010 sales tax receipts revenue bonds, said a preliminary official statement.

The bonds will be offered in two tranches, but the exact breakdown of those tranches has not been determined. There will be a tax-exempt series 2010A tranche and a taxable series 2010 Build America Bond tranche.

The bonds (A1/AA/) will be sold through Goldman Sachs and Cabrera Capital Markets LLC.

Proceeds will be used to finance or reimburse the authority for costs related to a transit improvement and expansion project.

University of Texas System to price

Also out on the horizon, the Board of Regents of the University of Texas System is expected to sell $373.27 million in series 2010B revenue finance system refunding bonds, said a preliminary official statement.

The bonds (Aaa/AAA/AAA) will be sold on a negotiated basis with RBC Capital Markets Inc. and Piper Jaffray & Co. as the senior managers.

The university system, which is based in Austin, Texas, expects to use the proceeds to refund existing debt.

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