Munis little changed to weaker; new issues get good response; S.C. transportation bonds price

By Sheri Kasprzak

New York, Oct. 10 - Municipal yields were flat to slightly weaker in spots, market insiders reported, as new issues were well-received by eager investors.

"The focus is on new issues," said one trader who noted that secondary was rather quiet.

"Outside of 10 years, there's a bit of weakness, but we're not off by that much. Overall, I'd call it unchanged."

Meanwhile, the week's largest offering, an $887,195,000 offering from the Dormitory Authority of the State of New York, was offered to retail investors on Wednesday.

"There seems to be good interest," said one market source of the retail order period for the bonds.

The deal will open to institutional investors on Thursday.

The state personal income tax revenue bonds (/AAA/AA) are being sold through Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Siebert Brandford Shank & Co. LLC.

The authority intends to use the proceeds to finance capital projects for the State University of New York.

South Carolina Transportation Infrastructure Bank prices

Heading to the day's heavy new-issue calendar, the South Carolina Transportation Infrastructure Bank sold $424.91 million of series 2012B revenue refunding bonds, said a pricing sheet.

The bonds (A1//A) were sold competitively with Bank of America Merrill Lynch winning the bid, said Debra Rountree, director of operations for the bank. The true interest cost came in at 2.952%.

The bonds are due 2013 to 2033 with 3.375% to 5% coupons.

Proceeds will be used to refund the infrastructure bank's series 2003A and 2004A revenue bonds.

"The infrastructure bank has always sold bonds competitively, although recently the bank did receive and review proposals for an underwriter for negotiated bond sales," Rountree said in an interview.

"The board decided to move forward with this refunding sale on a competitive basis."

U of Maryland deal set

Looking to Thursday's competitive calendar, the University System of Maryland plans to hit the market with a two-tranche deal. The system will price $173,815,000 of series 2012 auxiliary facility and tuition revenue bonds (Aa1/AA+/AA+).

The deal includes $115 million of series 2012C revenue bonds, which are due 2013 to 2032, and $58,815,000 of series 2012D refunding bonds, which are due 2013 to 2026.

Proceeds will be used to finance improvements to academic facilities and auxiliary facilities for the system and to refund its series 2005A and 2006A revenue bonds.

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