Municipal yields firm 1 to 3 bps; Dasny brings $150 million of bonds for Fordham a day early

By Sheri Kasprzak

New York, April 12 - Municipal yields were better by 1 to 3 basis points throughout the curve as investors fled to less risky sectors, market insiders reported. With stocks and commodities taking a hit following renewed fears over Japan's nuclear worries, Treasuries got a boost and municipals followed suit, said market insiders.

Intermediate bonds were seen better by as much as 3 bps with shorter and longer bonds improved by 1 to 2 bps, said one trader.

On Tuesday, it was reported that the nuclear crisis in Japan was now rivaling the Chernobyl disaster.

"The crisis in Japan is definitely making investors uncomfortable," said the trader.

"Safer is better as far as they're concerned. Munis are traditionally safer. It's a good thing for us because this is the first day we've firmed in weeks. We've been unchanged for a few days, but not firmer."

Dasny brings bonds

The improvement in yields prompted at least one issuer to hit the market a day early with its institutional pricing. The Dormitory Authority of the State of New York had intended to offer $150 million of series 2011 revenue bonds (A2/A/) for Fordham University to institutional investors on Wednesday. Instead, Dasny opened up the pricing for institutional investors on Tuesday.

The sale included $100 million of series 2011A bonds and $50 million of series 2011B bonds.

The 2011A bonds are due 2015 to 2031 with a term bond due in 2036. The serial coupons range from 3% to 5.25%. The 2036 bonds have a 5.5% coupon.

The 2011B bonds are due July 1, 2041 with a 5% coupon.

The full pricing details were unavailable on Tuesday evening.

J.P. Morgan Securities LLC was the senior manager.

Proceeds will be used to construct a new law school building and a 430-bed residence hall as well as renovate a book storage area in the existing Quinn Library, which will be connected to the law school.

Illinois district sells

In other pricing action during the quiet session, the Community Unit School District No. 365-U of Illinois sold $55.19 million of series 2011A general obligation refunding bonds, said a pricing sheet.

The bonds (Aa2) were sold competitively with BMO Capital Markets Inc. winning the bid. The true interest cost came in at 5.858365%.

The bonds are due 2017, 2026 and 2029 to 2032. The 2017 bonds have a 4.5% coupon, and the 2026 bonds have a 5.25% coupon. The serial bonds have coupons from 5.5% to 5.75%.

Proceeds will be used to advance refund the district's series 2002 bonds.

The district is based in Romeoville

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