Munis stay unmoved even as large supply hits market; Kentucky Property brings $362.28 million

By Sheri Kasprzak

New York, June 22 - Municipal yields were largely unmoved Wednesday, unfazed by the massive wave of new issues that came to market, traders reported.

"We're flat," said one trader.

"There's so much new supply, the focus is really over there, and although pricings seem to be pretty positive from what we've seen, there's not a lot trading [in secondary]. There's not enough momentum going on to move yields in any direction."

Heading up Wednesday's primary flood, the Kentucky Property and Buildings Commission came to market with $362.28 million of series 2011 revenue and revenue refunding bonds in two tranches, said a pricing sheet.

The bonds (Aa3//AA-) were sold through Citigroup Global Markets Inc.

The deal included $349.585 million of series 2011A revenue and revenue refunding bonds and $12.695 million of series 2011B taxable revenue bonds.

The 2011A bonds are due 2013 to 2031 with 2% to 5% coupons. The 2011B bonds are due Aug. 1, 2013 and have a 1.27% coupon priced at par.

Proceeds will be used to fund various public economic development projects, to refund existing debt and to provide general fund debt service relief in the 2012 fiscal year.

New York Transitional prices

Elsewhere during the session, the New York City Transitional Finance Authority priced $300 million of series 2011S building aid revenue bonds in the increasingly active competitive market.

The offering included $200 million of series 2011S-2A tax-exempt bonds and $100 million of series 2011S-2B taxable qualified school construction bonds, said a pricing sheet.

The bonds (Aa3/AA-/AA-) were sold competitively with two winners. Bank of America Merrill Lynch won the tax-exempt portion of the deal, and Goldman Sachs & Co. took the taxable qualified school construction bonds.

The 2011S-2A bonds are due 2027 to 2034 with term bonds due in 2036 and 2040. The serial coupons range from 4% to 5%. The 2036 bonds have a 5% coupon priced at 102.377, and the 2040 bonds have a 5% coupon priced at 101.976.

The 2011S-2B bonds are due July 15, 2026 and have a 4.8% coupon priced at 100.53.

Proceeds will be used to fund qualified school construction projects.

Charles County brings G.O.s

In other competitive news, Charles County, Md., sold $57.785 million of series 2011 general obligation bonds, said a pricing sheet.

The offering included $53.785 million of series 2011 tax-exempt consolidated public improvement and refunding bonds and $4 million of series 2011 taxable public improvement bonds.

The tax-exempts are due 2013 to 2028 with 2% to 5% coupons.

Robert W. Baird & Co. Inc. won the competitive bid with a 2.815% true interest cost, said Crystal Hunt, public information officer for the county.

"The county is not required to competitively sell its bonds, but in general it's a sound fiscal decision to do so," Hunt said in an interview.

"Due to the very high bond ratings Charles County receives and the market's interest in Maryland bond issues, we receive very competitive rates on our issues, as we did this year."

Proceeds will be used to fund improvements to county facilities and to refund the county's series 2003 and 2004 bonds.

The county seat is La Plata.

Wisconsin preps $800 million

Looking ahead, the July 4 week will be highlighted by a particularly large note offering from the Badger State.

Wisconsin announced plans Wednesday to offer $800 million of series 2011 operating notes competitively on July 6, said a notice of sale from the state Capital Finance Office.

The notes are due June 15, 2012.

Proceeds will be used to finance general cash flow needs for the state.

U of Washington sale ahead

Also coming up, the University of Washington is slated to price $213.595 million of series 2011A general revenue and refunding bonds on Tuesday, said a notice of sale.

The bonds (/AA+/) will be sold competitively with Seattle-Northwest Securities Inc. as the financial adviser.

The bonds are due 2012 to 2035.

Proceeds will be used to finance or repay commercial paper notes used to finance capital projects and to refund existing university debt.

The university is based in Seattle.

Puerto Rico preps G.O.s

In other upcoming offerings, the Commonwealth of Puerto Rico is expected to bring $304 million of series 2011 public improvement G.O. bonds, said a preliminary official statement.

The bonds (A3/BBB/BBB+) will be sold on a negotiated basis with J.P. Morgan Securities LLC and Barclays Capital Inc. as the senior managers.

Proceeds will be used to finance capital improvement projects and to refund bond anticipation notes.

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