Muni yields seen up as primary dominates market; Los Angeles Airports brings $930.16 million

By Sheri Kasprzak

New York, March 24 - Municipals were seen decidedly weaker on Wednesday as primary action took center stage. The large portion of the yield curve was seen higher by 3 to 5 basis points, a trader reported.

"It's definitely been off today," the trader said. "[Trading] volume has been really light as well. Not a very good day on our side."

Meanwhile, primary saw a big rush of activity led by the Department of Airports of the City of Los Angeles' $930.155 million sale of series 2010A senior revenue bonds. The deal was upsized from $897.78 million.

The bonds (Aa3/AA/AA) were sold through Siebert Brandford Shank & Co. LLC, said a pricing sheet.

The bonds are due 2014 to 2031 with term bonds due 2035 and 2040.

The department plans to use the proceeds to fund capital expenditures at Los Angeles Airport and to refund existing commercial paper.

Chicago Transit prices $550 million

Elsewhere in primary, the Chicago Transit Authority sold Wednesday $550 million in series 2010 sales tax receipts revenue bonds, said a term sheet.

The sale included $44.645 million in series 2010A tax-exempt bonds and $505.355 million in series 2010B Build America Bonds.

The bonds (A1/AA/) were sold through senior managers Goldman, Sachs & Co. and Cabrera Capital Markets LLC.

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

The 2010B bonds are due 2020 to 2024 with a term bond due 2040. The serials have 5.07% to 5.62% coupons. The 2040 bond has a 6.2% coupon, priced at par.

Proceeds will be used to finance or reimburse the authority for costs related to transit improvement and expansion projects.

University of Texas sells $373.27 million

In other news, the Board of Regents of the University of Texas System priced $373.27 million in series 2010B revenue finance system refunding bonds, said a pricing sheet.

The bonds (Aaa/AAA/AAA) were sold through RBC Capital Markets Corp. and Piper Jaffray & Co.

The bonds are due 2011 to 2024 with 3% to 5% coupons.

The university system, which is based in Austin, Texas, plans to use the proceeds to refund existing debt.

University of Maryland bonds price

The University System of Maryland priced $81.015 million in series 2010B taxable Build America Bonds Wednesday, said a pricing sheet.

The bonds (Aa2/AA+/AA) were sold competitively with Wells Fargo Securities Inc. winning the bid. The true interest cost came in at 3.34%.

The bonds are due 2019 to 2030 with 4.35% to 5.4% coupons.

Proceeds will be used to fund the expansion, construction, renovation and improvement of the dental, journalism and pharmacy schools as well as the renovation of a performing arts center.

The university system is based in Adelphi, Md.

Fresno sells $108.07 million

In other competitive sales, the City of Fresno, Calif., priced $108.072 million in series 2010 construction fund revenue bonds, said a pricing sheet.

The bonds (Aa3/AA-/) were sold competitively with Credit Agricole CIB as the winning bidder.

The one-year bonds were priced to yield 0.996%.

Proceeds will be used to fund construction projects throughout the city.

Massachusetts DOT sale planned

Looking to upcoming sales, the Massachusetts Department of Transportation plans to bring to market $867.125 million in series 2010 metropolitan highway system revenue bonds, said a preliminary official statement.

The sale includes $592.335 million in series 2010A-1 through 2010A-7 variable-rate demand obligations and $274.79 million in series 2010B bonds.

The bonds will be sold on a negotiated basis with Citigroup Global Markets Inc. as the lead manager.

The 2010A-1 bonds are due 2029, and the 2010A-2 bonds are due 2037. The 2010A-3 bonds, 2010A-4 bonds, 2010A-5 bonds and 2010A-6 bonds are due 2039. The 2010A-7 bonds are due 2029.

The 2010B bonds are due 2020 to 2030 with a term bond due 2035.

Proceeds will be used to refund the department's series 1997 and 1999 bonds.

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