Municipal yields experience spotty weakness; New York prices $750 million in G.O. bonds

By Sheri Kasprzak

New York, March 18 - Municipals were seen mostly flat to slightly weaker on Thursday, market insiders reported, as primary activity once again dominated the day's action.

"Spots are probably up 1 or 2 basis points, but overall, it's basically flat," said one trader reached during the session.

"A lot of folks are looking at primary, but we have seen a decent amount of interest [in secondary]. It's been fairly busy."

Among Thursday's primary deals, the City of New York priced $750 million in series 2010G general obligation bonds (Aa3/AA/AA-) in four tranches, said a pricing sheet.

The sale included series 2010G1-G4 bonds, which were brought to market through lead manager Siebert Brandford Shank & Co. LLC.

The series 2010G-1 Build America Bonds are due 2018 to 2028 with term bonds due in 2031 and 2036. The coupons range from 4.524% to 6.268%, all priced at par.

The 2010G-2 bonds are due 2012 to 2016 with coupons from 1.65% to 3.5%, all priced at par.

The 2010G-3 bonds are due 2016 to 2017 with 5% coupons.

The 2010G-4 bonds are due 2039 and are variable-rate bonds.

The city is expected to use the proceeds to fund capital expenditures.

Orlando-Orange expressway bonds price

In other offerings, the Orlando-Orange County Expressway Authority of Florida brought $350 million in series 2010A revenue bonds, said a term sheet.

The bonds (A1/A/A) were sold on a negotiated basis with J.P. Morgan Securities Inc. as the lead manager.

The bonds are due 2025 to 2030 with term bonds due in 2035 and 2040. Coupons range from 4.125% to 5%.

The authority plans to use the proceeds to fund construction projects in the authority's five-year plan.

Northeastern University brings bonds

Elsewhere during the day, the Massachusetts Health and Educational Facilities Authority sold $327.095 million in series 2010 revenue bonds for Northeastern University, said a pricing sheet.

The bonds (A2) were sold through Barclays Capital Inc.

The sale included $251.635 million in series 2010A tax-exempt bonds and $75.46 million in series 2010B Build America Bonds.

The 2010A bonds are due 2010 to 2030 with a term bond due in 2035. The serial coupons range from 2% to 5%. The 2035 bonds have a split maturity with a 4.875% coupon, priced at 98.918, and a 5% coupon, priced at 100.405.

Proceeds will be used to refund existing bonds and terminate a swap agreement connected to the refunded bonds.

The university is located in Boston.

Montreau sells $115.62 million

Also during the week, the Tulsa County Industrial Development Authority priced $115.615 million in series 2010 senior living facilities revenue bonds for Montreau, Inc., said a pricing sheet. Those bonds came to market Wednesday.

The sale included $104.14 million in series 2010A bonds, $3.435 million in series 2010B bonds and $8.04 million in series 2010C bonds.

The 2010A bonds are due 2023, 2030, 2040 and 2045 with 6.875% to 7.25% coupons, all priced at par. The 2010B bonds are due 2045 and have a 6.5% coupon, priced at par, and the 2010C bonds are due 2015 with a 5.75% coupon, also priced at par.

Ziegler Capital Markets Inc. was the lead manager.

Proceeds will be used to fund the construction of a senior living facility and refund existing variable-rate demand bonds.

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