Muni yields drop again; Massachusetts brings $1.28 billion; Wisconsin prices $456.42 million

By Sheri Kasprzak

New York, Aug. 18 - Municipal yields continued to slide on Wednesday. Ten-year, triple-A rated municipals ended the day at 2.32%, a record low, said a trader reached during the afternoon.

"Yields just keep firming," said the trader.

"We'll see what happens with supply in the next few weeks, but I suspect it will remain pretty quiet until the end of the summer."

Meanwhile, primary action was healthy Wednesday with the Commonwealth of Massachusetts bringing $1.283 billion in bonds and notes to the table, said a pricing sheet. The bonds were sold in four offerings competitively.

The deal included $350 million in series 2010A revenue anticipation notes (MIG 1/SP-1+/F1+), $425 million in series 2010B RANs, $150 million in series 2010C RANs and $358 million in series 2010D Build America Bonds (Aa1/AA/).

The 2010A RANs were sold to Goldman, Sachs & Co., are due April 28, 2011 and have a 2% coupon priced at 101.188.

The 2010B RANs were sold to J.P. Morgan Securities Inc. and TD Securities. The notes have a 2% coupon to yield 0.23%. The notes are due May 26, 2011.

The 2010C notes are due June 23, 2011 and have a 2% coupon priced at 101.441. They were sold to Wells Fargo Securities Inc., Goldman Sachs, JPMorgan, Morgan Keegan & Co. Inc. and RBC Capital Markets Corp.

The 2010D bonds were won by Citigroup Global Markets Inc. at a 4.53% true interest cost. The bonds are due Aug. 1, 2031 and have a 4.5% coupon priced at par.

Proceeds will be used to finance a variety of capital projects.

Wisconsin brings G.O. bonds

In other competitive offerings, the State of Wisconsin priced $456.42 million in series 2010 general obligation bonds (Aa2//AA), said a term sheet.

The offering included $146.68 million in series 2010C tax-exempt bonds and $309.74 million in series 2010D G.O. Build America Bonds.

The 2010C bonds are due 2012 to 2019 with coupons from 4% to 5%. The 2010D bonds are due 2020 to 2026 with term bonds due 2032 and 2041. Coupons range from 3.45% to 4.6%, all priced at par. The 2032 bonds have a 5% coupon priced at 99.861. The 2041 bonds have a 5.1% coupon priced at 99.838.

JPMorgan won the 2010A bonds with a 1.72% TIC. Barclays Capital Inc. took the 2010B bonds with a 4.64% TIC.

Proceeds will be used to finance capital projects.

Kentucky bonds price

Elsewhere, the Kentucky Asset/Liability Commission priced Wednesday $467.555 million in series 2010 general fund funding notes, said a pricing sheet.

The bonds (Aa2) are due 2011 to 2012 and 2018 to 2020 with coupons from 0.841% to 4.204%, all priced at par.

JPMorgan was the senior manager.

Proceeds will be used to finance or refinance outstanding obligations and to fund state medical insurance fund obligations of the Teachers' Retirement System of the State of Kentucky.

Louisiana sells bonds

Also during the session, the State of Louisiana priced $405.3 million in series 2010B second-lien gasoline and fuel tax revenue bonds (Aa2/AA/), said a term sheet.

The bonds are due 2013 to 2040 with a term bond due 2045. The serial bonds have 4% to 5% coupons. The 2045 bonds have a 5% coupon priced at 105.084.

Goldman Sachs and Citigroup are the senior managers.

The state intends to use the proceeds to construct and maintain the New Florida Avenue Bridge and the Interstate 12 to Bush Highway project, also known as Louisiana Highway 3241.

Kansas DOT drives deal

In other news, the Kansas Department of Transportation priced $325 million in series 2010A Build America Bonds, said a term sheet.

The bonds (Aa1/AAA/AA+) were sold through Barclays.

The bonds are due Sept. 1, 2035 and have a 4.596% coupon priced at par.

Proceeds will be used to finance projects under the department's 10-year capital plan.

L.A. water bonds sold

Out on the West Coast, Los Angeles Department of Water and Power sold $139.775 million in series 2010C power system revenue bonds, said a term sheet.

The bonds (Aa3/AA-/AA-) were sold through Loop Capital Markets LLC.

The bonds are due July 1, 2027 with a 5.516% coupon priced at par.

Proceeds will be used to construct the Pine Tree Wind Turbine Expansion Project, a 120 mega watt wind generating facility in Mohave, Calif., as well as construct the Pine Tree and Adelanto solar projects, two photovoltaic generators.

California power deal ahead

Looking to upcoming sales, the Southern California Public Power Authority is set to price $533.065 million in series 2010-1 Windy Points/Windy Flats revenue bonds on Aug. 25, said a preliminary official statement.

The bonds (/AA-/AA-) will be sold on a negotiated basis with JPMorgan as the senior manager.

The bonds are due 2011 to 2030.

Proceeds will be used to prepay for 11.1 million mega watt hours of wind power generation over a 20-year contract.

Based in Anaheim, Calif., the authority is a joint powers authority comprising 10 municipalities and one irrigation district.

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