Municipal yields largely flat as market returns following holiday; Harford County, Md., prices

By Sheri Kasprzak

New York, June 1 - Municipal yields were seen mostly flat on Tuesday following the Memorial Day holiday, and market insiders reported that the shortened week may keep the action tame.

"It's not really surprising, but we're pretty flat," said one trader.

"We're just getting back to business, and it's a short week, so that's going to keep things subdued, I'd say."

Primary saw very light activity, with the County of Harford in Maryland bringing $219.345 million in series 2010 consolidated public improvement bonds. The bonds were sold competitively with J.P. Morgan Securities Inc. and Morgan Keegan & Co. Inc. each taking pieces.

JPMorgan won the $91 million in series 2010A tax-exempt consolidated bonds. Morgan Keegan won the $102.575 million in series 2010B Build America Bonds. JPMorgan also won the $25.77 million in series 2010C refunding bonds.

The 2010A bonds are due 2011 to 2020 with coupons from 2.5% to 5%. The 2010B bonds are due 2021 to 2030 with coupons from 4.7% to 5.5%. The 2010C bonds are due 2011 to 2021 with coupons from 2.5% to 5%.

Proceeds from the offering will be used to fund capital improvements for water and sewer infrastructure as well as general county projects. The remainder will be used to refund existing debt.

The county seat is Bel Air.

Venture deal ahead

Meanwhile, the primary calendar remains fairly light throughout the week, a sellsider noted.

"It's a short week," said the sellsider.

"It will probably be pretty light. I'm not seeing much coming up, but the following week should pick up a little bit."

Wednesday's action will be led by Ventura County, Calif., which plans to sell $131 million in series 2010-11 tax and revenue anticipation notes (MIG 1/SP-1+/).

The notes will be sold competitively with Fieldman, Rolapp & Associates as the financial adviser.

The notes are due July 1, 2011, and proceeds will be used to fund the county's seasonal cash flow requirements for the fiscal year ending June 30, 2011.

The county seat is Ventura.

Compton plans sale

In other offerings set for Wednesday, the Community Redevelopment Agency of the City of Compton, Calif., is scheduled to price $92.735 million in series 2010 second-lien tax allocation bonds (/A-/).

The offering includes $28.3 million in series 2010A housing bonds, $46.37 million in series 2010B bonds and $18.065 million in series 2010C taxable bonds.

Grigsby & Associates is the lead manager for the negotiated sale.

The 2010A bonds are due 2011 to 2020 with term bonds due 2024, 2030, 2038 and 2042. The 2010B bonds are due 2025 to 2026 with term bonds due 2032, 2040 and 2042. The 2010C bonds are due 2014 to 2019 with term bonds due 2020 and 2024.

Proceeds will fund low- to moderate-income housing redevelopment activities and finance tax-sharing obligations payable to the Compton Unified School District.

L.A. County preps bonds

Out on the horizon, the County of Los Angeles in California plans to bring to market $1.5 billion in series 2010-11A tax and revenue anticipation notes, said a preliminary official statement.

The notes will be sold on a negotiated basis with Citigroup Global Markets Inc.

The notes are due June 30, 2011.

Proceeds will be used to fund capital expenditures, current expenses and the discharge of other obligations or debts during fiscal year 2010-2011.

Modesto bonds planned

Also coming up, the Modesto Irrigation District Financing Authority of California is expected to price $99.455 million in series 2010 revenue bonds (A2/A+/), according to a preliminary official statement.

The offering will include series 2010A taxable electric system capital improvements Build America Bonds and series 2010B tax-exempt electric system capital improvements revenue bonds. The exact breakdown of the bonds was not immediately available.

JPMorgan is the lead manager for the deal.

The 2010A bonds and 2010B bonds are due 2016 to 2025 with term bonds due 2030 and 2040.

Proceeds from the sale will be used to acquire and construct a peaking plant, which will consist of six reciprocating engine generators, as well as finance the authority's share of the construction costs associated with the Lodi Energy Center.

Based in Modesto, the authority provides financing for capital projects.

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