Virginia Public School Authority brings $438.52 million; Salt River sells $325 million bonds

By Sheri Kasprzak

New York, Sept. 29 - Municipals retained a firm tone on Tuesday as the primary market took center stage. Yields were improved by about a basis point in spots while the rest of the yield curve remained flat, a trader reported.

"We're mostly flat," he said. "Some spots, you might see yields down by a basis point or so."

In the primary market, the Virginia Public School Authority priced $438.52 million in series 2009 school financing refunding bonds, said a pricing sheet.

The bonds (Aa1/AA+/AA+) were sold through Wachovia Bank NA.

The bonds are due 2011 to 2028 with coupons from 1.75% to 5%.

Proceeds will be used to refund the authority's series 1997 resolution bonds.

Another large sale on Tuesday came from the Salt River Project Agricultural Improvement and Power District of Arizona, which priced $325 million in series 2009B electric system revenue bonds, said a pricing sheet.

The bonds (Aa1/AA/) were sold on a competitive basis. J.P. Morgan Securities Inc. won the bid with a 2.412503% true interest cost, said Anne Stewart, the district's treasury administrator.

The bonds are due 2013 to 2020 with coupons from 3% to 4.5%.

Proceeds will be used to repay all of the district's outstanding commercial paper.

The district has headquarters in Tempe, Ariz.

Seacoast Utility prices $78.5 million

In other pricing news, the Seacoast Utility Authority in Florida priced Tuesday $78.495 million in series 2009 water and sewer utility system revenue bonds, said a pricing sheet.

The bonds (A2/A+/A+) were sold through lead manager Citigroup Global Markets Inc. The co-managers were RBC Capital Markets Corp. and Raymond James & Associates Inc.

The bonds are due 2011 to 2022 with coupons from 3% to 5%.

Proceeds will be used to fund improvements to the Hood Road Membrane Conservation projects and make a deposit to a debt service reserve fund.

The authority is located in Palm Beach Gardens, Fla.

King County library bonds price

Elsewhere, the King County Rural Library District of Washington State sold Tuesday $74.095 million in series 2009 unlimited tax general obligation bonds, said a sellside source connected to the deal.

The bonds (/AA/) were sold competitively with JPMorgan as the winning bidder. The TIC came in at 2.61%.

The bonds are due 2010 to 2021 with coupons from 2% to 5% and yields from 0.7% to 3.78%.

Proceeds will be used to construct, furnish and equip library facilities; renovate, expand and upgrade existing facilities; and make other capital improvements to the library system.

The county seat is Seattle.

Secondary flat to slightly better

Moving to the secondary market Tuesday, a trader reported that although most of the market remained flat with a firmer tone, spots on the longer end of the yield curve did improve by about a basis point.

Seen trading Tuesday was the Cascade Water Alliance of Washington's series 2009B Build America Bonds. The 5.668% 2029 bonds were trading near par Tuesday afternoon. The 5.907% 2034 bonds were seen at 5.64%.

In other trading news, the bonds issued by the Oregon Facilities Authority for PeaceHealth were moving. The 5% 2032s were trading at par.

Also, the Multnomah County Hospital Facilities Authority bonds sold for Adventist Health were in action. The 5.125% 2040s were seen at 4.524%.

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