Muni yields drop; Massachusetts Water brings offering; Wake County to sell $421.72 million

By Cristal Cody

Tupelo, Miss., April 27 - Municipal yields dropped on Tuesday, a credit analyst told Prospect News.

"There was a pretty big shift in the muni yields today," said Tom Kozlik, vice president of Janney Capital Markets LLC.

For example, the 10-year MMD index was 4 basis points lower at 293 bps, he said.

"The 20-year is down 3 basis points to 379, and the 30-year MMD is down 5 basis points to 406," Kozlik said.

"Supplies are limited this week, so that's a key factor, and there's just some reactions to the broader markets," he said.

Massachusetts Water prices

Meanwhile, Massachusetts Water Resources Authority led the biggest sale of the day with $253.085 million in series 2010A and 2010B general revenue and revenue refunding bonds.

The bonds priced through a negotiated sale led by senior manager Citigroup Global Markets Inc., but pricing terms were still being finalized, a source said.

"Mass Water went to market. They'll finalize pricing today."

Wesleyan deal prices

Elsewhere, the Connecticut Health and Educational Facilities Authority also brought to market its $190 million offering for Wesleyan University, the source said.

The series 2010G revenue bonds priced through a negotiated sale handled by lead manager Goldman, Sachs & Co. Final pricing terms were not immediately available.

The university is located in Middletown, Conn.

Wake County bonds ahead

Looking to Wednesday, Wake County, N.C., is likely to bring the biggest offering of the week under a slow primary trend.

"The problem is there just isn't a whole lot of municipal volume this week," Kozlik said. "The things that are out in the market are getting done."

Wake County plans to price $421.72 million in series 2010C general obligation refunding bonds (Aaa/AAA/AAA) through a competitive sale.

The bonds have serial maturities from 2013 through 2026.

Waters and Co. LLC is the financial adviser.

The proceeds will be used to refund the county's series 2003A-B, 2004, 2005, 2007 and 2009A bonds.

The county seat is Raleigh, N.C.

Sisters of Charity to price

Looking ahead to primary offerings, the Sisters of Charity of Leavenworth Health System intend to price $1.025 billion in revenue and revenue refunding bonds (/AA/AA-), according to a preliminary official statement.

The offering includes $327 million in series 2010A revenue bonds and $277.525 million in series 2010B revenue bonds that will be brought through the Colorado Health Facilities Authority; $202.8 million in series 2010A revenue bonds through the Kansas Development Finance Authority; and $101.8 million in series 2010A revenue bonds and $116.1 million in series 2010B revenue refunding bonds through the Montana Facility Finance Authority.

J.P. Morgan Securities Inc. is the senior manager of the negotiated sale.

Proceeds will be used to finance capital improvements and to refund outstanding bonds.

New Orleans Aviation Board to sell

Also on the horizon, the New Orleans Aviation Board intends to sell $54.555 million in revenue bonds for passenger facility charge projects, according to a preliminary official statement.

The sale includes series 2010A Gulf Opportunity Zone revenue bonds with serial maturities from 2021 through 2026 and term bonds due 2031, 2036 and 2041 and series 2010B revenue bonds due in 2038.

The bonds (//A-) will be brought to market through a negotiated sale led by Melvin & Co.

The proceeds will be used to fund interior and exterior improvements to existing airport terminals, including expansion of Concourse D and improvements to the baggage claim areas.

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