Muni yields firm; King County, Wash., brings $94.61 million of G.O. bonds; Tidehaven prices

By Sheri Kasprzak

New York, July 16 - Municipal yields were firmer yet again, market insiders reported. With more offerings than usual on Monday's primary calendar, yields responded positively to the new supply, traders said.

Yields outside of 10 years have been firming steadily since last week, said a trader.

Ten years and out, yields were firmer by 2 basis points to 5 bps, said the trader, while yields closer in were flat to slightly firmer.

This week will provide more new issue action than the last couple of weeks. Almost $9 billion of new bonds are expected, and issuance will be led by a $1.49 billion sale from the State of Illinois. On Tuesday, the Dormitory Authority of the State of New York is set to come to market with $1 billion of state personal income tax revenue bonds.

King County prices

Heading up Monday's primary action, King County, Wash., sold $94.61 million of series 2012 unlimited tax general obligation refunding bonds, said a pricing sheet.

The bonds (Aaa/AAA/AAA) were sold competitively. J.P. Morgan Securities LLC won the bid with a 1.66% true interest cost, said Nigel Lewis, business and finance officer for the county.

The bonds are due 2012 and 2015 to 2023 with 2% to 5% coupons.

"The transaction will result in future debt service savings totaling $14.9 million on a present value basis," Lewis said Monday.

Proceeds will be used to refund the city's series 2004 and series 2004B unlimited tax G.O. bonds issued for Harborview Medical Center.

Tidehaven school bonds price

In other primary news, the Tidehaven Independent School District of Texas brought to market $50.5 million of series 2012 G.O. bonds, said a pricing sheet.

The bonds were sold competitively. The issuer did not return calls for the winning bidder by press time Monday evening.

The bonds are due 2013 to 2025 and 2029 to 2036 with term bonds due in 2039 and 2042. The serial coupons range from 2% to 5%. The 2039 bonds have a 3.375% coupon and priced at 97.683, and the 2042 bonds have a 3.5% coupon and priced at 99.09.

Proceeds will be used to construct two replacement elementary schools and a combination high school/junior high school to replace two existing schools.

"Both elementary schools are over 76 years old, and though they have served our community well, they do not meet current TEA [Texas Education Agency] building codes and building requirements, nor do they meet appropriate space requirements established by the state of Texas Education Code. The cost for repairing and renovating these schools would nearly equal the cost of building new campuses," superintendent Andrew Seigrist said in a statement.

"Though not quite as old, the junior high and high school campuses also require costly repairs and renovations. Rather than investing significant bond dollars in the current facilities for limited return of an about 15 additional years, the planning committee and the board of trustees agreed that constructing a new combined high school/junior high school designed to serve the community for the next 50 plus years would be the most cost-effective investment."

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