Municipal yields seen firmer; Chicago prices $1.17 billion in bonds for Chicago O'Hare

By Sheri Kasprzak

New York, April 14 - Municipal yields saw some firmness across the yield curve, said market insiders, as the focus turned to the primary market. Billions in new issues priced Wednesday.

"Everyone's really looking at primary today," said one trader.

"It's pretty quiet on the secondary side. Yields might be down 1 or 2 basis points overall. There's definitely a firmer tone, even though it is slight."

Leading the primary action was a $1.167 billion sale of airport revenue bonds from the City of Chicago sold for the Chicago O'Hare International Airport.

The deal included $578 million in series 2010B general airport third-lien Build America Bonds, which are due 2038 and 2040, with a split maturity for the 2040 bonds. The 2038 bonds have a 6.845% coupon, priced at par. The 2040 bonds have a 6.145% coupon, priced at par, and a 6.395% coupon, also priced at par.

The deal also included about $50 million in series 2010C passenger facility charge taxable bonds, which are due 2019 to 2028 with a term bond due 2031. The coupons range from 5.272% to 6.322%, all priced at par. The 2031 bonds have a 6.395% coupon, also priced at par.

The full details were not immediately available.

Bank of America Merrill Lynch was the senior manager.

The sale also included series 2010A general airport third-lien non-AMT bonds, series 2010C general airport third lien non-AMT bonds, series 2010D general airport third lien revenue refunding bonds, series 2010E general airport third lien revenue refunding bonds, series 2010F general airport third lien non-AMT revenue bonds, series 2010A passenger facility charge non-AMT bonds, series 2010B passenger facility charge non-AMT bonds and series 2010D passenger facility charge refunding bonds.

Proceeds will be used to refund commercial paper notes as well as modernize Chicago O'Hare International Airport.

Nashville convention center bonds price

In other major offerings priced Wednesday, the Convention Center Authority of the Metropolitan Government of Nashville and Davidson County, Tenn., sold on Wednesday $623.215 million in series 2010 revenue bonds, said a pricing sheet.

The offering included $51.73 million in series 2010A-1 tourism tax revenue bonds, $152.395 million in series 2010A-2 Build America Bonds and $419.09 million in series 2010B Build America Bonds.

Goldman, Sachs & Co. was the senior manager.

The 2010A-1 bonds are due 2015 to 2026 with coupons from 3.25% to 5%. The 2010A-2 bonds are due July 1, 2043 with a 7.431% coupon, priced at par. The 2010B bonds are due 2016 to 2025 with a term bond due 2043. The serial coupons range from 4.862% to 6.217%, all priced at par. The 2043 bonds have a 6.731% coupon, priced at par.

Proceeds will be used to acquire land and to design, construct, equip and open a convention center in Nashville.

Alabama school authority sells bonds

Elsewhere, the Alabama Public School and College Authority sold $181.42 million in series 2010 capital improvement refunding bonds, said term sheets.

The sale included $110.21 million in series 2010A bonds and $71.21 million in series 2010B bonds.

The 2010A bonds were sold on a negotiated basis with Moran Stanley & Co. Inc. as the senior manager.

The 2010A bonds are due 2015 to 2019 with 4% to 5% coupons.

The 2010B bonds were sold competitively with Morgan Stanley winning the bid. Those bonds are due 2013 and 2014 with 5% coupons for both maturities.

Proceeds will be used to refund the authority's series 2001C capital improvement bonds, series 1998 capital improvement bonds due 2018 and series 2009A refunding bonds due 2029.

Washington County clean water bonds price

In other news, the Clean Water Services of Washington County in Oregon sold $93.56 million in series 2010B taxable senior lien sewer revenue Build America Bonds, said a term sheet.

The bonds (Aa3/AA/) are due 2016 to 2025 with term bonds due 2030 and 2035. The coupons range from 3.97% to 5.228%, priced at par. The 2030 bond has a 5.701% coupon, priced at par, and the 2035 bond has a 5.801% coupon, also priced at par.

Bank of America Merrill Lynch was the senior manager.

Proceeds will be used to finance improvements to the sewer system and fund a debt service.

The county seat is Hillsboro, Ore.

SSM Health sale planned

Looking out on the horizon, SSM Health Care of Missouri is expected to bring to market $281.225 million in series 2010 health facilities revenue bonds, said a preliminary official statement.

The sale includes $124.71 million in series 2010A bonds sold through the Wisconsin Health and Educational Facilities Authority and $156.515 million in series 2010B bonds through the Health and Educational Facilities Authority of the State of Missouri.

The bonds (/AA-/AA-) will be sold on a negotiated basis with Citigroup Global Markets Inc. and Goldman, Sachs & Co. as the senior managers.

Proceeds will be used to finance and refinance capital projects as well as restructure existing debt.

Based in St. Louis, SSM Health Care operates and maintains hospitals in Missouri, Oklahoma, Illinois and Wisconsin.

Puerto Rico power sale ahead

Also out on the horizon, the Puerto Rico Electric Power Authority is set to price $275 million in series ZZ power revenue refunding bonds, said a preliminary official statement. The sale is in addition to the $350 million sale of revenue bonds the authority announced Tuesday.

The bonds (A3/BBB+/BBB+) will be sold on a negotiated basis with Morgan Stanley and Citigroup as the senior managers.

The bonds are due 2011 to 2028 with term bonds, the maturities of which have not been set.

Proceeds will be used to refund existing power revenue bonds.

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