Yields steady ahead of heavy primary calendar; Texas Transportation prepares $1.5 billion sale

By Sheri Kasprzak

New York, July 23 - Muni yields were largely unmoved on Friday, but the tone of the market remained firm. One market insider said the tone was fairly common for a Friday in the summer.

"It's quiet, but it almost always is on Friday. It's been pretty good this week, truthfully," he said when asked about the amount of interest in the secondary market.

"It's been about as good as it's been in a few months. Next week, we'll see what happens. Looks like a lot of good-sized stuff coming our way."

Headlining the primary action is a $1.5 billion sale from the Texas Transportation Commission. One market source said the offering could be upsized, especially given the issuer's AAA rating. The deal is set to price on Tuesday.

"The market is absolutely hungry for triple-A rated bonds," he said.

"This one will probably do very well. It could upsize. It has a BABs component, and I suspect that will be hugely popular."

Goldman, Sachs & Co. will bring the bonds (Aaa/AAA/). The offering includes $115.565 million in series 2010A tax-exempt bonds and $1.384 billion in series 2010B Build America Bonds.

The proceeds will be used to construct and improve state highways.

NYC sets sale

Also ahead on Tuesday, the City of New York is expected to price $800 million in series 2011 general obligation bonds through Barclays Capital Inc.

The city intends to use the proceeds to fund general capital improvements.

Columbus to price

Looking to Wednesday's calendar, the City of Columbus, Ohio, is expected to price $431.715 million in series 2010 unlimited and limited tax G.O. bonds (Aaa//AAA).

The senior managers are Stifel, Nicolaus & Co. Inc. and J.P. Morgan Securities Inc.

Proceeds will be used to fund capital improvements, including water system improvements, sanitary sewer improvements, parks and recreation projects and public safety and health projects.

The offering is comprised of $129.245 million in series 2010A unlimited tax bonds, $16.315 million in series 2010B limited tax bonds, $266.38 million in series 2010C unlimited tax Build America Bonds, $14.04 million in series 2010D limited tax Build America Bonds and $5.735 million in series 2010E limited tax bonds.

RTD plans deal

Out on the horizon, the Regional Transportation District of Colorado plans to price $404 million in series 2010 tax-exempt private activity bonds for the Denver Transit Partners Eagle P3 project, said a preliminary official statement.

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

Proceeds will be used to construct commuter rail projects in Denver, which will be operated by a private company or consortium.

The district, based in Denver, provides public transportation services for eight of the 12 counties in the Denver-Aurora-Boulder Combined Statistical Area of Colorado.

Harris road bonds price

During the week's primary action, Harris County in Texas sold Thursday $199.915 million in series 2010A toll road senior-lien revenue and refunding bonds, said a term sheet.

The bonds were sold through Citigroup Global Markets Inc.

The bonds are due Aug. 15, 2021 and have a 2% coupon to yield 0.35%.

Proceeds will be used to refund and defease all outstanding series 2009B toll road senior-lien revenue and refunding bonds.

The county seat is Houston.

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