Munis close tumultuous week flat to softer; Connecticut brings $224.8 million of taxable G.O.s

By Sheri Kasprzak

New York, Nov. 2 - Municipal yields were mostly flat on Friday after Hurricane Sandy threw a wrench into trading action and postponed many new issues, market sources said.

Around 10 years, the tone was slightly weaker as a lackluster jobs report put pressure on Treasuries during the session, said one trader.

"If we're off, it's a touch," he noted.

Meanwhile, most of the week's new issues were pushed back, some indefinitely, in light of the storm. Even so, the State of Connecticut priced the taxable portion of its planned $400 million general obligation bond offering.

The state sold $224,785,000 of series 2012B taxable G.O.s (Aa3/AA/AA) through Morgan Stanley & Co. LLC. The issue also includes $180 million of tax-exempt G.O.s

The bonds are due 2014 to 2022 with 0.465% to 2.551% coupons, all priced at par.

Proceeds will be used to finance capital expenditures for the state.

Lincoln County hospital prices

In other pricing action, the Hospital Authority No. 1 of Lincoln County, Neb., sold $102.84 million of series 2012 hospital revenue and refunding bonds for the Great Plains Regional Medical Center, said a pricing sheet.

The bonds (/A-/) were sold through Piper Jaffray & Co. Inc.

The bonds are due 2015 to 2026 with term bonds due in 2030, 2034 and 2042. The serial coupons range from 3.5% to 5%. The 2030 bonds have a 5% coupon priced at 110.318 and the 2034 bonds have a 4% coupon priced at 98.599. The 2042 bonds have a 5% coupon priced at 107.857.

Proceeds will be used to construct, equip and acquire a new patient tower at the medical center in North Platte, Neb., as well as to refund the authority's series 2002 and 2009 revenue bonds.

Maui brings G.O.s

Also during the session, Maui County in Hawaii sold $70.25 million of series 2012 general obligation bonds, said a pricing sheet.

The bonds (Aa1/AA+/AA+) were sold competitively, but the issuer did not return calls requesting the winning bidder Friday.

The bonds are due 2013 to 2032 with 2% to 5% coupons.

Proceeds will be used to finance various capital improvements for the county, including the construction, improvement and replacements of water and sewer system facilities, solid waste facilities, drainage, road and bridge construction and repair, public works facilities, parks improvements, recreational facilities, public safety facilities and equipment and stadium improvements.

"Competitive bidding on the bonds is a GFOA's best practice for highly rated general obligation bonds, this increases transparency and assures that bonds are awarded to the underwriter that offers the lowest true interest cost," said Sandy Baz, budget director for the county in a statement released ahead of the bond sale.

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