Municipals close mixed as new deals hit market; Texas Public Finance brings $344.02 million

By Sheri Kasprzak

New York, July 19 - Yields were mixed as the muni market got down to the business of pricing a large number of new offerings, said traders.

One trader noted that despite the shakiness in the market, demand for new offerings seemed to be good.

"There's enough demand out there for these [new issues]," he said.

Seven-year yields were seen down 3 basis points while 10-year yields were up 2 bps. Thirty-year yields were up more than 4 bps.

Meanwhile, Moody's Investors Service announced Tuesday that it put five Aaa-rated states under review for possible downgrade due to their dependence upon federal revenues. Those states are Maryland, Tennessee, New Mexico, South Carolina and Virginia.

Looking to upcoming deals, the City of New York has reportedly received $100 million of orders for its pending $600 million sale of general obligation bonds. Alan Schankel, managing director with Janney Montgomery Scott LLC, said in a report Tuesday that during the first day of the city's retail order period on Monday, the deal received orders exceeding $100 million. Only a few maturities were made available during the initial pricing, Schankel said.

The city is poised to bring $600 million of G.O. bonds in two tranches on Wednesday.

Texas Public Finance prices

Heading up Tuesday's primary action, the Texas Public Finance Authority sold $344.02 million of series 2011 G.O. and refunding bonds, said a pricing sheet.

The bonds (Aaa//AAA) were sold on a negotiated basis with Siebert Brandford Shank & Co. LLC and RBC Capital Markets LLC as the senior managers.

The bonds are due 2012 to 2031 with 2.5% to 5% coupons.

Proceeds will be used to finance projects for the Texas Department of Criminal Justice, the Department of State Health Services, the Texas Facilities Commission and the Texas State School for the Blind and Visually Impaired as well as to refund some of the authority's outstanding debt.

Tampa Bay Water sells debt

Elsewhere, the Tampa Bay Water Authority of Florida brought $289.565 million of series 2011 utility system refunding revenue bonds, said a term sheet.

The offering included $140.645 million of series 2011A bonds and $148.92 million of series 2011B bonds.

The bonds (Aa2/AA+/AA+) were sold on a negotiated basis. Citigroup Global Markets Inc. was the lead manager for the 2011A bonds, and Raymond James & Associates Inc. was the senior manager for the 2011B bonds. Bank of America Merrill Lynch, Morgan Stanley & Co. Inc. and Raymond James were the co-senior managers for the 2011A bonds. Bank of America Merrill Lynch, Citigroup and Morgan Stanley were the co-senior managers for the 2011B bonds.

The 2011A bonds are due 2011 to 2024 with 2% to 5% coupons. The 2011B bonds are due 2011 to 2019 with 2% to 5% coupons.

Proceeds will be used to refund the authority's series 2001A-B revenue bonds.

L.A. brings G.O. bonds

Also during the session, the City of Los Angeles competitively sold $117 million of series 2011A G.O. bonds, said a pricing sheet.

The bonds (Aa3/AA-/AA-) are due 2012 to 2031 with 1.5% to 5% coupons.

Proceeds will be used to fund storm water pollution abatement projects.

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