Municipals round out volatile week on a quiet note; L.A. Water and Power prices $307.14 million

By Sheri Kasprzak

New York, Aug. 12 - After a week of wild mood swings, municipal yields closed out Friday on a calmer note, with yields little moved from Thursday's levels, said market insiders.

"I think most of us are ready for this week to be over," said one trader reached during the afternoon.

"It's been rough. Everyone's looking ahead to next week's stuff and seeing what we're going to get. Hopefully things will settle down a bit. There's been a lot going on in the markets this week, so it's been knocking us around."

Looking to primary action, the Los Angeles Department of Water and Power priced $307.14 million of series 2011A water system revenue bonds, said a pricing sheet.

The bonds (Aa2/AA/AA+) were sold through Citigroup Global Markets Inc.

The bonds are due 2017 to 2032 with term bonds due in 2036, 2039 and 2041. The serial coupons range from 3% to 5%. The 2036 bonds have a 5% coupon and priced at 105.733. The 2039 bonds have a 5.25% coupon and priced at 107.645. The 2041 bonds have a 5% coupon and priced at 105.338.

Proceeds will be used to refund a portion of the department's series 2001A and 2004C revenue bonds.

Florida DEP sells debt

Over in the competitive market Friday, the Florida Department of Environmental Protection brought $127.92 million of series 2011A Florida Forever revenue refunding bonds, said a pricing sheet.

The bonds (A1/A/) were sold competitively with J.P. Morgan Securities LLC winning the bid.

The bonds are due 2012 to 2021 with 3% to 5% coupons.

Proceeds will be used to refund certain outstanding Florida Forever revenue bonds for a net present value savings without extending maturities. The department achieved a $14.5 million present value debt service savings, said Jennifer Diaz, spokeswoman for the department.

South Coast prices three deals

Elsewhere, the South Coast Local Education Agencies of California sold $102.35 million of series 2011 pooled tax and revenue anticipation notes for three separate school districts, said a term sheet.

The offering included $13 million of series 2011A notes for the Anaheim City School District, $74.99 million of series 2011B notes for the Capistrano Unified School District and $14.36 million of series 2011C notes for the Placentia-Yorba Linda Unified School District.

The 2011A notes are due June 29, 2012, have a 2% coupon and priced at 101.438. The 2011B notes are due May 15, 2012, have a 2% coupon and priced at 101.183. The 2011C notes are due Aug. 31, 2012, have a 2% coupon and priced at 101.546.

Piper Jaffray & Co. was the sole manager for the offering.

Proceeds will be used to fund operating cash needs ahead of the collection of certain revenues and taxes.

Indiana Finance preps big deal

In the week ahead, two major offerings are slated to hit the market, led by a $1.021 billion offering of series 2011 revenue bonds from the Indiana Finance Authority.

The authority plans to price $698.89 million of series 2011A first-lien bonds, $274.2 million of series 2011B second-lien bonds and $47.91 million of series 2011C second-lien bonds.

The bonds will be sold through senior manager Morgan Stanley & Co. LLC, and the proceeds will be used to acquire a wastewater system from Citizens Energy Group and to make upgrades to the wastewater system.

California water sets sale

Also in the coming week, the California Department of Water Resources is scheduled to bring $1 billion of series 2011N power supply revenue bonds (//AA-) through Morgan Stanley and De La Rosa & Co. on Wednesday.

The bonds are due 2012 to 2021, and the proceeds will be used to repay the department's series 2002A fixed-rate bonds and outstanding variable-rate debt.

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