Muni yields flat to weaker as primary action builds; Denton County, Texas, sells $100.9 million

By Sheri Kasprzak

New York, June 7 - The tone of the muni market was unchanged to slightly weaker as the week kicked off amid light primary action, but the primary calendar was stacking up with some large offerings.

"I'd say we're flat, but spots are a touch off today," said one trader.

"Not much movement, maybe a basis point here or there."

Meanwhile, during Monday's light primary activity, Denton County in Texas priced $100.9 million in series 2010B Build America Bonds, said a pricing sheet.

The bonds (Aaa/AAA/) were sold through First Southwest Co.

The bonds are due 2020 to 2025 with term bonds due 2030 and 2035. The coupons range from 4.249% to 4.949%, all priced at par. The 2030 bonds have a 5.838% coupon, priced at par, and the 2035 bonds have a 5.968% coupon, priced at par.

Proceeds will be used to construct, renovate and equip county-owned buildings and improve various county roads.

The county seat is Denton.

King County sells bonds

Elsewhere during the session, King County in Washington state sold $60.215 million in series 2010 limited tax general obligation bond anticipation notes, said Nigel Lewis, senior financial analyst for the county.

"We received eight bids, and the winning bid was from Piper Jaffray & Co.," Lewis said.

"The net interest cost of their bid was 0.40%, which we considered to be very favorable."

The 2% notes (MIG 1) were sold competitively.

Seattle-Northwest Securities Corp. was the financial adviser for the notes, which are due June 15, 2011.

Proceeds will be used to provide interim financing for upgrades to the county's budget, finance, human resources, payroll and benefits computer systems.

On a broader note, Lewis said he feels the market is very welcoming for issuers.

"I believe that this is a very good time for issuers to be going to market with new debt issues," he noted.

The county seat is Seattle.

Cook plans G.O. bonds

Looking to the week's coming deals, Cook County of Illinois is getting ready to bring to market $1.054 billion in series 2010 G.O. bonds Thursday, according to a calendar of upcoming sales.

The offering is comprised of $400.28 million in series 2010A G.O. refunding bonds, $242.3 million in series 2010B taxable G.O. refunding bonds, $80 million in series 2010C taxable G.O. bonds and $331.895 million in series 2010D-F bonds.

Morgan Stanley & Co. Inc. is the lead manager for the 2010A-C bonds. The lead manager for the 2010D-F bonds is Loop Capital Markets LLC.

Proceeds will be used to refund existing debt, fund a portion of the county's pension plan, renovate the John H. Stoger Jr. Hospital and other hospitals and clinics, construct and equip the county's public safety facility, improve and renovate county buildings and administrative offices and purchase county equipment.

The county seat is Chicago.

Harris sale ahead

Also coming up Thursday, Harris County in Texas is set to sell $260 million in series 2010 refunding bonds, according to a sales calendar.

The offering includes $100 million in series 2010A unlimited tax road refunding bonds and $160 million in series 2010B permanent improvement refunding bonds.

The bonds will be sold on a negotiated basis with Jefferies & Co. and Mesirow Financial Inc. as the lead managers.

The 2010A bonds are due 2011 to 2028 with a term bond. The 2010B bonds are due 2011 to 2028 with term bonds.

The county plans to use the proceeds to refund existing debt.

The county seat is Houston.

Houston to sell TRANs

In other Texas deals, the City of Houston is scheduled to bring $230 million in series 2010 tax and revenue anticipation notes on June 16, said a notice of sale.

The notes (/SP-1+/F1+) will be sold competitively with First Southwest and TKG & Associates as the financial advisers.

The notes are due June 30, 2011.

Proceeds will be used to fund general operating expenses ahead of the collection of taxes and revenues.

Austin sets deal

Another Lone Star deal is set for Wednesday. The City of Austin in Texas plans to price $220.02 million in series 2010 electric utility system revenue refunding bonds, said a preliminary official statement and calendar.

The offering includes $118.82 million in series 2010A bonds and $101.2 million in series 2010B Build America Bonds.

The bonds (A1/A+/AA-) will be sold on a negotiated basis with Citigroup Global Markets Inc. as the lead manager.

Proceeds will be used to refund the city's outstanding commercial paper notes, which were used to upgrade the city's electric utility system.

Illinois to bring bonds

Out on the horizon, the State of Illinois plans to bring to market $1.2 billion in G.O. bonds, said preliminary official statements.

The offering includes $300 million in series 2010-4 taxable G.O. Build America Bonds (A1) and $900 million in series 2010-5 taxable G.O. Build America Bonds (A1).

The 2010-4 bonds will be sold competitively on June 17 with Acacia Financial Group Inc. as the financial adviser.

The 2010-5 bonds will be sold on a negotiated basis with Citigroup as the senior manager.

The 2010-4 bonds are due 2011 to 2035. The maturities for the 2010-5 bonds have not been set.

Proceeds from both of the bonds will be used to fund some of the state's transportation projects as well as other capital projects.

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