Muni yields firm; University of California Medical Center brings $522.56 million revenue bonds

By Sheri Kasprzak

New York, Dec. 3 - Municipals were once again seen firmer, according to a trader reached during the afternoon.

"It's definitely feeling better out there," the trader said.

"There's really not a lot of movement, but yields are lower by about 1 or 2 basis points. I'd say primary is probably taking center stage today. There's a lot of new money stuff."

Amid the heavy primary activity, the Regents of the University of California Medical Center priced Thursday $522.56 million in series 2009 revenue bonds, said a statement from the state treasurer's office.

The sale included $429.15 million in series 2009E Build America Bonds and $93.41 million in series 2009F tax-exempt bonds.

The bonds were sold through Barclays Capital Inc.

The 2009E bonds are due 2029 and 2049. The 20-year bonds have a 6.458% coupon, priced at par, and the 40-year bonds have a 6.583% coupon, also priced at par.

The 2009F bonds are due 2012 to 2038 with yields from 1.28% to 5.1%.

Retail investors purchased $75 million of the tax-exempt bonds. Individual investors were not offered the Build America Bonds.

Proceeds will be used to fund construction projects at the University of California medical centers in Los Angeles, San Francisco, San Diego and Irvine.

Chicago BOE sells $254.25 million

Elsewhere on Thursday, the Chicago Board of Education priced $254.24 million in series 2009G unlimited tax general obligation qualified school construction bonds, said a pricing sheet.

The bonds (A1/AA/A+) were sold through Goldman, Sachs & Co. and J.P. Morgan Securities Inc.

The bonds are due 2025 and have a 1.75% coupon, priced at par.

Proceeds will be used to construct qualified schools in the district.

Tennessee school bonds price

In other news, the Tennessee State School Bond Authority priced $177 million in series 2009 qualified school construction bonds, said a term sheet.

The bonds (Aa3/AA/) were sold through Barclays Capital.

The bonds are due 2026 and have a 1.515% coupon, priced at par.

Proceeds will be used to fund the construction of qualified schools.

D.C. sale coming up

Looking to the coming week's primary action, the District of Columbia plans to sell its previously announced $646.845 million in series 2009 income tax secured revenue bonds on Wednesday, according to a sales calendar.

The deal includes $46.845 million in series 2009D tax-exempt bonds and $600 million in series 2009E Build America Bonds.

JPMorgan and Loop Capital Markets LLC are the lead managers.

Proceeds will be used to fund capital projects.

Coming up on Thursday, the Maryland Transportation Authority plans to price $551.145 million in series 2009 transportation facilities projects revenue bonds, according to a sales calendar.

The sale includes $69.335 million in series 2009A tax-exempt bonds and $481.81 million in series 2009B Build America Bonds.

Goldman Sachs and Merrill Lynch & Co. are the lead managers for the bonds (Aa3/AA-/AA-).

The 2009A bonds are due 2017 to 2022, and the 2009B bonds are due 2033 and 2043.

Proceeds will be used to fund a variety of transportation improvements.

New York City sales ahead

Also coming up, the City of New York is scheduled to price several offerings during the course of the week.

On Wednesday, the city plans to price $700 million in series 2009 fixed-rate tax-exempt refunding bonds, said a sales calendar. A retail order period will be conducted from Friday through Tuesday.

The bonds (Aa3/AA/AA-) will be sold through senior manager Citigroup Global Markets Inc.

Proceeds will be used to refund existing debt.

Coming up on Thursday, the city is expected to sell $620 million in series 2009 taxable Build America Bonds, said a sales calendar.

The bonds will be sold on a negotiated basis with JPMorgan as the senior manager.

A retail order period will be conducted starting Tuesday.

Proceeds will be used for capital expenditures.

Finally, on Wednesday, the city plans to price $80 million in series 2009 fixed-rate taxable bonds, said a sales calendar.

The bonds will be sold on a competitive basis.

Proceeds will be used to fund capital expenditures.

Florida Housing deal planned

Looking out on the horizon, the Florida Housing Finance Corp. plans to sell $620 million in series 2010 homeowner mortgage revenue bonds, said a preliminary official statement.

The deal includes $80 million in series 2010A-1 non-AMT bonds, $120 million in series 2010A-2 non-AMT bonds and $420 million in series 2010B taxable convertible bonds.

The bonds will be sold through RBC Capital Markets Corp.

The 2010A-1 bonds are due 2012 to 2019 with term bonds due 2024, 2027 and 2028. The 2010A-2 bonds are due 2041. The 2010B bonds are due 2042.

Proceeds will be used to finance mortgage loans.

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