Triborough Bridge and Tunnel brings $346.96 million bonds; munis once again close out flat

By Sheri Kasprzak

New York, Oct. 20 - Municipal yields held true to their streak of flatness for a third day, spurred in part by a continued interest in new-issue activity.

"We're really unchanged overall," said one trader reached in the late afternoon.

"I've seen some trades here and there. It seems like primary has backed off substantially, but there's still enough out there to keep investors out of secondary. I don't think we're choking on new deals like we were a couple of weeks ago."

Heading up Wednesday's healthy primary market was New York City's Triborough Bridge and Tunnel Authority, which came to market with $346.96 million in series 2010A general revenue bonds, said a pricing sheet.

The bonds (Aa2//AA) were sold competitively. Calls to the issuer for the winner bidder were not returned by press time Wednesday.

The sale included $66.56 million in series 2010A-1 bonds and $280.4 million in series 2010A-2 Build America Bonds.

The series 2010A bonds are due 2011 to 2020 with 2% to 5% coupons. The 2010B bonds are due 2021 to 2027 with term bonds due 2032 and 2040. The serial coupons range from 4.05% to 5.30%. The 2032 bonds have a 5.45% coupon priced at par. The 2040 bonds have a 5.55% coupon priced at par.

Proceeds will be used to finance capital transportation projects and refinance the issuer's general revenue bond anticipation notes.

Suffolk County sells

Also out of New York on Wednesday, Suffolk County priced $111.5 million in series 2010B public improvement bonds and $14 million in series 2010B bond anticipation notes, said a notice from the county comptroller's office.

The bonds (Aa2/AA/AA) were sold competitively with Bank of America Merrill Lynch winning the bid. The net interest cost came in at 3.29%. Five bidders participated in the sale.

The bonds are due 2011 to 2029 with 3% to 3.75% coupons.

The notes were also sold competitively and were also won by Bank of America Merrill Lynch with a 0.38% NIC.

The notes are due Oct. 28, 2011 and have a 1.25% coupon priced at 100.867.

"The county's superior credit ratings attracted numerous bidders, which resulted in lower interest rates and significant cost savings for Suffolk County residents," county comptroller Joseph Sawicki said in a statement.

Proceeds from the bond sale will be used to construct the county's jail in Yaphank and make improvements to the county's water system. Proceeds from the notes will be used to finance highway projects ahead of federal or state grants.

The county seat is Riverhead, N.Y.

Snohomish school bonds price

Elsewhere in competitive offerings, the Snohomish School District No. 201 of Snohomish, Wash., sold $114.5 million in series 2010B unlimited tax general obligation bonds (Aa2/AA-/), said a pricing sheet.

The bonds are due 2018 to 2029 with a term bond due 2015. The serial coupons range from 3% to 4%. The 2015 bonds have a 3% coupon priced at 107.482.

Proceeds will be used to complete the renovation of Snohomish High School, renovate and expand Valley View Middle School, expand Centennial Middle School, construct a new elementary school to replace Machias Elementary and Riverview Elementary schools, construct an aquatic center, make district-wide improvements and acquire classroom technology.

Baltimore County deal ahead

Looking ahead, Baltimore County in Maryland plans to price $391 million in series 2010 G.O. bonds competitively on Tuesday, said a preliminary official statement.

One sellsider said he suspects that the county will be able to attract aggressive bids given its solid credit rating - Moody's rated the bonds Aaa on Wednesday - and its established economic base.

"They're really in a good position to get some aggressive bids," said the sellsider, who is connected to the deal.

"It's not an issuer that comes to market every other month, so that's helpful to them. They have a pretty strict fiscal policy. Not only that, but they have a solid economic base, so buyers like that. I don't really want to talk exact expectations, since it's an upcoming sale, but I expect good things."

The offering includes $124 million in 73rd issue Baltimore County Metropolitan District bonds, $247.05 million in series 2010A Baltimore County consolidated public improvement bond and $19.95 million in series 2010B Baltimore County public improvement qualified school construction bonds.

The 73rd issue bonds are due 2012 to 2040. The 2010A bonds are due 2012 to 2030, and the 2010B bonds are due 2029.

Proceeds will be used to refund bond anticipation notes; construct, acquire and design water supply, drainage and sewerage systems in the county; upgrade and construct parks and recreation facilities, agricultural projects, community college projects, community improvements and waterway improvements; and construct new schools and upgrade existing school facilities.

Philadelphia to sell bonds

Looking out on the horizon, the City of Philadelphia is expected to come to market with $619.32 million in series 2010 airport revenue bonds, said a preliminary official statement.

The sale includes $267.67 million in series 2010A non-AMT bonds, $25.13 million in series 2010B non-AMT refunding bonds, $56.215 million in series 2010C AMT refunding bonds and $270.305 million in series 2010D AMT refunding bonds.

The bonds (A2/A+/A) will be sold through senior manager Bank of America Merrill Lynch. The co-senior managers are J.P. Morgan Securities LLC, Siebert Brandford Shank & Co. LLC and Morgan Stanley & Co. Inc.

The 2010A bonds are due 2011 to 2030 with term bonds due 2035 and 2040. The 2010B bonds are due 2011 to 2015, and the 2010C bonds are due 2011 to 2018. The 2010D bonds are due 2011 to 2020 with term bonds due 2025 and 2028.

Proceeds will be used to upgrade and modernize airport facilities as well as refund the city's series 1997A airport revenue refunding bonds and its series 1998A airport revenue refunding bonds.

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