Muni yields improve 1 to 2 bps; New York State Thruway brings $408.78 million trust fund bonds

By Sheri Kasprzak

New York, June 15 - Amid unrest in the foreign markets and volatility in Treasuries and equities, municipals remained steady, with yields down by 1 basis point to 2 bps, said traders.

"We're holding our own," said one trader.

"There's a lot of volatility elsewhere, so we're a pretty safe investment by comparison."

Treasuries fell substantially on Wednesday. The 10-year dove 13 bps and the 30-year 12 bps.

Meanwhile, primary action remained fairly heavy. The New York State Thruway Authority priced $408.775 million of series 2011A second general resolution highway and bridge trust fund bonds, said a pricing sheet.

The offering included $370.28 million of series 2011A-1 bonds and $38.495 million of series 2011A-2 bonds.

The 2011A-1 bonds are due 2012 to 2031 with 1.75% to 5% coupons.

The 2011A-2 bonds are due 2012 to 2018 with 1.75% to 4% coupons.

Citigroup Global Markets Inc. and Ramirez & Co. Inc. were the senior managers.

Proceeds will be used to fund projects included in the authority's multi-year highway and bridge capital plan.

Competitive deals abound

Moving to the busy competitive market, issuers have reported that current market conditions make competitive deals extremely attractive.

Jason Friess with Arlington County, Va.'s Department of Management and Finance said Wednesday that the county chose to sell its $127.02 million of series 2011 general obligation public improvement bonds competitively because it made sense.

"While the county is not required to price the bonds competitively, given our credit ratings and current market conditions, our analysis showed that a competitive deal would provide the lowest cost to the county," he said in an interview.

Robert W. Baird & Co. Inc. won the bid for the bonds (Aaa/AAA/AAA) with a 3.3% true interest cost.

The offering included $36.475 million of series 2011A bonds and $90.545 million of series 2011B bonds.

The 2011A bonds are due 2012 to 2024 with term bonds due in 2027 and 2031. The serial coupons range from 2% to 5%. The 2027 bonds have a 5% coupon priced at 110.381. The 2031 bonds have a split maturity with a 3.875% coupon priced at par and a 5% coupon priced at 107.777.

The 2011B bonds are due 2012 and 2014 to 2027 with term bonds due in 2029 and 2031. The serial coupons range from 2% to 5%. The 2029 bonds have a 4% coupon priced at par, and the 2031 bonds have a 4% coupon priced at 98.23.

Proceeds will be used to fund improvements to public schools, parks and recreation facilities and transportation projects.

Princeton brings revenue bonds

In other competitive deals, the New Jersey Educational Facilities Authority priced $250 million of series 2011B revenue bonds on behalf of Princeton University, said a pricing sheet.

The bonds (Aaa/AAA/) were sold competitively with Citigroup Global Markets Inc. winning the bid.

The bonds are due 2013 to 2036 with term bonds due in 2039 and 2041. The serial coupons range from 2.375% to 5%. The 2039 bonds have a 5% coupon priced at 113.095. The 2041 bonds have a 4.375% coupon priced at 98.764.

Proceeds will be used to fund capital projects at or near the university's main campus in Princeton, N.J., at its Forrestal campus in Plainsboro, N.J., and its administrative building in Windsor, N.J.

Houston sells TRANs

Also during the session, the City of Houston priced $220 million of series 2011 tax and revenue anticipation notes, said a pricing sheet.

The notes (/SP-1+/F1+) were sold competitively with Wells Fargo winning the bid. The TIC was 0.1977%.

The notes are due June 29, 2012 and have a 1.75% coupon.

Proceeds will be used to finance capital expenditures ahead of the collection of taxes and revenues.

Michigan Strategic bonds price

The Michigan Strategic Fund priced Wednesday $119.115 million of series 2011 limited obligation revenue bonds, said a pricing sheet.

The bonds (A1/A+/) were sold through Citigroup and J.P. Morgan Securities LLC.

The bonds are due 2014 to 2026 with a term bond due in 2031. The serial coupons range from 5% to 5.25%. The 2031 bonds have a 5.25% coupon priced at 99.374.

Proceeds will be used to acquire the Cadillac Place Office Building facility through the defeasance or discharge of existing certificates of participation.

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