Munis unchanged to firmer in spots; Virginia Public Building brings $215.77 million of bonds

By Sheri Kasprzak

New York, Feb. 7 - Municipals were mostly unchanged for a third straight session, market sources said, but spotty firmness was noticed.

"Overall, unchanged," said one trader in the early afternoon.

"A case could be made for some firmness in spots, and trading is picking up."

New-issue volume remains fairly reasonable, said another trader, and activity is slow enough that "secondary is getting some attention."

Alan Schankel, managing director with Janney Montgomery Scott LLC, agreed that the lighter calendar is helping.

"A light new-issue calendar allowed more focus on the secondary, where trading was brisk," he said Thursday.

"ICI reported $874 million of inflows to municipal mutual funds in the week ending Jan. 30, a slower pace than the $2 billion average of the three previous weeks. January's total muni inflows exceeded $7 billion, higher than any month in 2012, and well above the $4.1 billion 2012 monthly average. As a side note, inflows to equity mutual funds in January, at $27.3 billion, exceeded those of any month since January 2007."

Virginia Public Building prices

Looking to primary action Thursday, the Virginia Public Building Authority sold $215.77 million of series 2013 public facilities revenue bonds, said a pricing sheet.

The bonds were sold competitively.

The deal included $143.4 million of series 2013A revenue bonds and $72.37 million of series 2013B refunding bonds.

The 2013A bonds are due 2014 to 2033 with 3% to 5% coupons.

The 2013B bonds are due 2019 to 2023 with coupons from 4% to 5%.

Proceeds will be used to finance general governmental facilities, conservation projects, public safety facilities, education and cultural facilities and public/mental health projects, as well as to prepay and defease some maturities of the authority's series 2006A-B public facilities revenue bonds.

Connecticut brings bonds

Elsewhere, the State of Connecticut sold $162.17 million of series 2013 state revolving fund general revenue bonds, said a pricing sheet.

The deal included $124,935,000 of series 2013A bonds and $37,235,000 of series 2013B bonds.

The 2013A bonds are due 2014 to 2031 with 1% to 5% coupons.

The 2013B bonds are due 2019 to 2027 with coupons from 2% to 5%.

The bonds were sold through BofA Merrill Lynch.

Proceeds will be used to make loans to qualified government entities and to refund existing debt.

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