Municipals improve as new issues flood market; Miami-Dade County brings $600 million bonds

By Sheri Kasprzak

New York, Feb. 23 - Municipal yields were better by a couple of basis points, market insiders said Tuesday, as primary activity took off.

"It's been a good day," said one trader.

"We've got a nice firm tone, yields are better by 1 or 2 basis points overall. Trading volume is relatively good."

On the primary side, several offerings came to market, led by a $600 million offering of series 2010 water and sewer system revenue bonds from Miami-Dade County, Fla.

The bonds (A1/A+/A) were sold through Raymond James & Associates Inc., said a pricing sheet.

The bonds are due 2011 to 2020 and 2023 to 2035 with 2% to 5% coupons. A term bond due 2039 has a 5% coupon priced at 99.537.

Proceeds will be used to fund improvements to the county's water and sewer system.

New York TFA bonds price

In other pricing news, the New York City Transitional Finance Authority competitively priced $356.5 million in series 2010 future tax secured bonds Tuesday, according to term sheets.

The sale included $273.15 million in series 2010F-1 future tax secured Build America Bonds and $83.35 million in series 2010F-3 tax-exempt bonds.

The bonds (Aa2/AAA/AA) are part of a $750 million offering, the remainder of which will price in late February or early March, according to a sellsider.

J.P. Morgan Securities Inc. took the series 2010F-1 bonds with a 5.52% true interest cost, and Bank of America Merrill Lynch won the series 2010F-3 bonds at a 3.26% TIC.

"We feel it went pretty well," one sellsider told Prospect News.

"It's a solid issuer. They have a good reputation and a good rating, and in this economy, investors are really looking for issuers like this."

The 2010F-1 bonds are due 2018 to 2030 with term bonds due 2035 and 2040. The coupons range from 4.25% to 5.8%. The 2010F-3 bonds are due 2012 to 2018 with 1.13% to 4.39% coupons, all priced at par.

Proceeds will be used to fund capital expenditures.

Dasny brings $222.74 million

Elsewhere in primary, the Dormitory Authority of the State of New York sold $222.74 million in series 2010A mental health services revenue bonds, said a sellside source.

Ramirez & Co. Inc. and JPMorgan were the lead managers.

The bonds (/AA-/A+) are due 2011 to 2025 with 2% to 5% coupons and yields from 0.85% to 4.32%.

Proceeds will be used to refund debt.

Maryland to sell $600 million

Coming up Wednesday, the State of Maryland plans to bring $600 million in series 2010 state and local facilities general obligation bonds (Aaa/AAA/AAA).

The deal includes $400 million in series 2010A Build America Bonds and $200 million in series 2010B tax-exempt bonds.

One market source said he feels the deal will be very successful.

"They have a triple-A [rating], so that's a major bonus for them," the sellsider said. "I'm sure it will go well."

The bonds will be sold competitively, and proceeds will be used to fund state and local loans on an as-needed basis as well as refund existing bonds.

Sacramento County to price

Looking out on the horizon, the County of Sacramento in California is set to sell $129.28 million in series 2010 refunding certificates of participation, said a preliminary official statement.

The COPs (Baa2/A-/A-) will be sold on a negotiated basis with De La Rosa & Co. and Bank of America Merrill Lynch as the lead managers.

Proceeds will be used to refund the county's series 1990, 1999 and 2003 COPs and pay for the termination of swap agreements related to the refunded COPs.

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