Munis close out slow day on a firmer note; Florida Board of Education prices $242.24 million

By Sheri Kasprzak

New York, Sept. 12 - Municipal yields were firmer on Monday despite a slow session, said market insiders. Yields were seen down by 1 basis point to 6 bps, with the most improvement seen out long.

"There's not a lot going on," said one trader reached in the afternoon.

"A little bit of activity [in secondary], but nothing to write home about. We're picking up some firmness, but there's no major movement."

Thirty-year yields were seen down 6 bps. The rest of the yield curve was 1 bp to 2 bps improved for the most part, the trader said.

In primary action, the Florida Board of Education brought $242.24 million of series 2011A lottery revenue refunding bonds, said a term sheet.

The bonds (A1//A+) were sold competitively.

The bonds are due 2014 to 2023 with 4% to 5% coupons.

Proceeds will be used to refund the board's series 2002C and 2003A lottery revenue bonds.

West Fargo school deal prices

In other competitive action Monday, the West Fargo Public School District No. 006 of North Dakota sold $67.2 million of series 2011 school building bonds, said a pricing sheet.

The bonds (Aa3) were sold competitively with Robert Baird & Co. Inc. winning the bid. The true interest cost came in at 3.4962%, said Mark Lemer, the district's business manager.

The bonds are due 2012 to 2027 with term bonds due in 2029 and 2031. The serial coupons range from 3% to 4%. The 2029 bonds have a 4% coupon and were not reoffered. The 2031 bonds have a 4% coupon priced at 99.728.

Proceeds will be used to construct, equip, furnish, enhance, repair and renovate schools within the district.

California RANs coming up

Some major offerings are expected in the coming weeks out of the Golden State. The State of California is poised to bring $5.4 billion of series 2011-12 revenue anticipation notes (MIG 1/SP-1+/F1) on Thursday.

The bonds will be sold on a negotiated basis, and the state intends to use the proceeds to pay off a $5.4 billion bridge loan it received July 26 from eight banks.

The state is also planning to price $2.6 billion of general obligation bonds. The offering will be conducted in three tranches, including $1.275 billion of tax-exempt various-purpose G.O. bonds, $1.3 billion of tax-exempt G.O. refunding bonds and $25 million of taxable G.O. bonds.

Bank of America Merrill Lynch and Stone & Youngberg are the senior managers for the bonds (A1/A-/A-).

Proceeds will be used to retire outstanding commercial paper notes and refund existing debt.

Prince George's deal ahead

Elsewhere in the competitive market this week, Prince George's County, Md., is scheduled to come to market with $289.915 million of series 2011 G.O. consolidated public improvement bonds (Aaa/AAA/AAA) on Thursday, said a preliminary official statement.

The offering includes $98.59 million of series 2011A bonds and $191.325 million of series 2011B refunding bonds.

Public Advisory Consultants is the financial adviser.

The 2011A bonds are due 2012 to 2031. The 2011B bonds are due 2012 to 2024.

Proceeds will be used to construct, reconstruct, establish, renovate, demolish, acquire and repair some capital projects, including schools, roads, bridges, public buildings and communications systems. The remainder will be used to refund the county's series 1999, 2000, 2001, 2002, 2003A and 2004 consolidated public improvement bonds.

Richland County bonds to price

Also coming up on Thursday, the Richland County School District No. 1 of South Carolina is set to price $211.16 million of series 2011 G.O. bonds, said a preliminary official statement.

The offering includes $206.16 million of series 2011A G.O. refunding bonds and $5 million of series 2011B G.O. bonds.

The bonds (Aa1/Aa2/AA/AA-/) will be sold competitively with Public Financial Management Inc. as the financial adviser.

The 2011A bonds are due 2014 to 2029. The 2011B bonds are due March 1, 2012.

Proceeds will be used to fund capital improvements and refund the district's series 2003 G.O. bonds.

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