Munis little changed; primary action tapers off; yields dropped on Los Angeles, Tacoma bonds

By Sheri Kasprzak

New York, May 15 - Municipals were seen mostly flat on Wednesday following some weakness on Tuesday, market sources said. New issue action dwindled.

"I'd call it mostly flat," one trader said.

"There are spots of firmness, but secondary is still pretty quiet, and most of the week's stuff has already priced."

Even though the market suffered from some softness earlier in the week, some issuers lowered yields. And on other offerings, yields were lifted.

L.A. sells $350.51 million

Among those bonds for which yields were lowered was Los Angeles' $349,505,000 offering of series 2013A wastewater system revenue refunding bonds.

The bonds (Aa3/AA/AA) were sold through BofA Merrill Lynch and Jefferies & Co.

The bonds are due 2014 to 2027 with term bonds due in 2033 and 2034. The serial coupons range from 2% to 5%, and the yields range from 0.19% to 2.67%. The 2033 bonds have a 5% coupon and priced at 116.541 to yield 3.07%, and the 2034 bonds have a 5% coupon and priced at 116.073 to yield 3.12%.

Proceeds will be used to current refund the city's series 2003 subordinated bonds and to advance refund the city's series 2005A senior lien bonds.

Tacoma brings debt

In another deal that saw yields lowered, the City of Tacoma, Wash., priced $181.64 million of series 2013A electric system revenue bonds, said a pricing sheet.

The bonds (Aa3//AA-) were sold through lead manager Citigroup Global Markets Inc.

The bonds are due 2015 to 2021 with term bonds due in 2038 and 2042. The serial coupons range from 4% to 5% with 0.36% to 1.81% yields. The 2038 bonds have a 5% coupon and priced at 114.071 to yield 3.34%, and the 2042 bonds have a 4% coupon and priced at 101.321 to yield 3.84%.

Proceeds will be used to fund a portion of the city's power capital plan and to refund its series 2004 and 2005A bonds for savings.

N.J. student loan notes price

Elsewhere during the session, one of the week's larger deals hit the market. The New Jersey Higher Education Student Assistance Authority came to market with $200 million of series 2013 student loan revenue notes, said a pricing sheet.

The deal included $180 million of series 2013-1A notes (/AA(sf)/) and $20 million of series 2013-1B notes (/A(sf)/).

The 2013-1A notes are due 2014 to 2029 with term bonds due in 2031 and 2035. The serial coupons range from 3% to 5%. The 2031 bonds have a 4% coupon and priced at 97.825, and the 2035 bonds have a 4.125% coupon and priced at 97.494.

The 2013-1B notes are due Dec. 1, 2043, have a 4.75% coupon and priced at 97.947.

The bonds were sold through senior manager BofA Merrill Lynch.

Proceeds will be used to finance student loans.

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