Muni yields hold steady; New Jersey Economic Development Authority sells $723 million bonds

By Sheri Kasprzak

New York, April 22 - Municipal yields were seen largely unmoved on Thursday as investors feasted on yet another day loaded with new money offerings, said market insiders.

"Things are really pretty quiet on this side," said one trader.

"I'd call it unchanged overall. If there's any improvement, it's really on the long side and not by very much."

Meanwhile, the New Jersey Economic Development Authority priced Thursday $723 million in series 2010 school facilities construction bonds, said a pricing sheet.

The sale included $49 million in series 2010CC-2 bonds and $674 million in series 2010DD-1 refunding bonds.

The 2010CC-2 bonds are due 2031 to 2032 with split maturities for both. The 2031 bonds have 4.5% and 5% coupons, and the 2032 bonds have a 4.375% coupon and a 5% coupon.

The 2010DD-1 bonds are due 2015 to 2019. The coupons range from 3% to 5%.

Bank of America Merrill Lynch was the senior manager for the bonds (Aa3/AA-/AA-).

Proceeds will be used to construct school facilities throughout the state as well as refund existing school construction bonds.

The authority, based in Trenton, N.J., loans money to qualified corporations and organizations.

Los Angeles USD prices $449.69 million

Over on the West Coast, the Los Angeles Unified School District brought $290.195 million in series 2010J taxable qualified school construction bonds (Aa2) and $159.495 million in series 2010KY tax-exempt general obligation bonds, said a pricing sheet.

The 2010J bonds included $190.195 million in election of 2005 series 2010J-1 bonds and $100 million in election of 2005 series 2010J-2 bonds.

The 2010J-1 bonds are due May 1, 2027 and have a 5.981% coupon, priced at par. The 2010J-2 bonds are due May 1, 2027 and have a 5.72% coupon, also priced at par.

The 2010KY bonds are due 2012 to 2018 with 1.1% to 5% coupons. The full pricing data was not immediately available Thursday.

Citigroup Global Markets Inc. and Morgan Stanley & Co. Inc. were the lead managers for the series 2010KY bonds. Goldman, Sachs & Co. was the senior manager for the series 2010J bonds.

The proceeds will be used to fund the construction of new schools throughout the district as well as renovate existing schools.

Oregon higher education bonds price

Also in the West, the Oregon State Board of Higher Education priced Thursday $335.92 million in series 2010 G.O. bonds, said a pricing sheet.

The bonds were sold through Bank of America Merrill Lynch and Citigroup.

The sale included $37.595 million in series 2010A tax-exempt bonds, $73.5 million in series 2010B federally taxable bonds, $113.74 million in series 2010C Build America Bonds, $21.265 million in series 2010D tax-exempt bonds, $31.5 million in series 2010E federally taxable bonds and $58.32 million in series 2010F tax-exempt bonds.

The 2010A bonds are due 2016 to 2028 with a term bond due 2033. The coupons range from 3% to 5%, and the 2033 bonds have a 4% coupon priced at 97.625.

The 2010B bonds are due 2011 to 2025 with coupons from 1.244% to 4.961%, all priced at par.

The 2010C bonds are due 2026, 2030 and 2039. The 2026 bonds have a 5.011% coupon, priced at par, and the 2030 bonds have a 5.332% coupon, also priced at par. The 2039 bonds have a 5.382% coupon, priced at par.

The 2010D bonds are due 2023 to 2029 with a term bond due 2039. The bonds all have 5% coupons. The 2039 bonds have a 5% coupon, priced at 105.919.

The 2010E bonds are due 2011 to 2026 with a term bond due 2035. The coupons range from 1.244% to 5.011%, all priced at par. The 2035 bonds have a 5.382% coupon, priced at par.

The 2010F bonds are due 2013 to 2022 with 3% to 5% coupons.

Proceeds will be used to fund a variety of capital projects for Oregon State University as well as refund existing G.O. bonds issued for Oregon State.

In reoffering news, the 4% 2033 bonds were seen at 4.05% Thursday afternoon.

The board, based in Portland, Ore., is the governing board for the state's higher educational institutions.

North Texas Tollway plans $400 million deal

Looking out on the horizon, the North Texas Tollway Authority plans to sell $400 million in series 2010 system revenue bonds, said a preliminary official statement. The pricing is expected for May 6.

The bonds (Baa3) will be sold in two tranches - a tax-exempt A tranche and a B tranche of Build America Bonds.

The bonds will be sold on a negotiated basis with J.P. Morgan Securities Inc. as the lead manager.

Proceeds will be used to fund the development and construction of an 11.5-mile stretch of State Highway 161.

The authority, based in Dallas, operates the toll highways in Collin, Dallas, Denton and Tarrant counties in Texas.

Massachusetts water deal ahead

Also coming up, the Massachusetts Water Resources Authority is expected to bring to market $253.085 million in series 2010 general revenue bonds, according to a preliminary official statement.

The offering includes $100 million in series 2010A bonds and $153.085 million in series 2010B revenue refunding bonds.

The bonds will be sold on a negotiated basis with Citigroup as the lead manager.

The 2010A bonds are due 2015 to 2030 with term bonds due 2035 and 2040.

The 2010B bonds are due 2014 to 2030.

Proceeds will be used to refund existing debt and to fund upcoming construction projects.

The authority, located in Boston, constructs and maintains water and sewage treatment facilities.

Lower Colorado River Authority sets offering

In other upcoming offerings, the Lower Colorado River Authority plans to sell $200 million in series 2010 transmission contract refunding and improvement revenue bonds, said a preliminary official statement.

Morgan Stanley is the senior manager.

The bonds (A2/A/A+) are due 2012 to 2018 and 2021, with term bonds due 2025, 2030 and 2040.

Proceeds will be used to finance the construction, renovation and improvement of generation facilities as well as refund some of the authority's tax-exempt transmission contract revenue notes.

Based in Austin, Texas, the authority operates electric power generation facilities.

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