Munis mixed as Bay Area Toll Authority brings $1.3 billion; NYC Water sells $504.24 million

By Sheri Kasprzak

New York, Oct. 28 - Municipals were mixed to round out Wednesday, with the short end of the yield curve seeing some gains and the long end giving up 2 to 3 basis points, said a trader.

"Short end is probably better by a few basis points, maybe 3 or 4," the trader said.

"The long end is off by about 2 or 3 [bps], so it's totally mixed out there. With everyone looking at new issues, it's been a fairly quiet day, but we've seen some retail interest in some stuff. There's a bit of activity out there."

In secondary action, the bonds recently sold by Greene County, Ohio, for the Kettering Health Network were seen moving. The 5.125% 2029 bonds were seen at 5.09%.

Meanwhile, in primary, the Bay Area Toll Authority of California brought $1.3 billion in series 2009F-2 Build America Bonds, said a term sheet.

The bonds (Aa2/AA/AA) were sold through Citigroup Global Markets Inc.

The bonds are due 2049 and have a 6.263% coupon, priced at par.

Proceeds will fund improvements to the San Francisco Bay Area toll bridges.

Connecticut prices $543.28 million

Another large sale for the day came out of the State of Connecticut. The state priced $543.275 million in series 2009 transportation infrastructure purposes special tax obligation bonds, according to a term sheet.

The sale included $186.48 million in series 2009A infrastructure bonds, $307.03 million in series 2009B taxable bonds and $49.765 million in series 2009B refunding bonds.

The 2009A infrastructure bonds are due 2010 to 2019 with a term bond due 2029. The serials have coupons from 2.5% to 5%, and the 2029 bonds have a 4.125% coupon, priced at par.

The 2009B taxable bonds are due 2020 to 2024 with a term bond due 2029. The serial coupons range from 4.855% to 5.355%, all priced at par, and the 2029 bond has a 5.74% coupon, priced at par.

The 2009B refunding bonds are due 2010 to 2012 with a term bond due 2014. The coupons range from 2% to 3%, and the 2014 bond has a 5% coupon, priced at 112.669.

Siebert Brandford Shank & Co. LLC was the senior manager.

Proceeds will be used to fund transportation infrastructure projects and refund existing debt.

New York City water bonds price

Elsewhere, the New York City Water Finance Authority priced Wednesday $504.24 million in series 2010AA water and sewer system second general resolution Build America Bonds, said a term sheet.

The bonds were sold through Barclays Capital Inc.

The offering was divided into two tranches due in 2041: a $403.39 million tranche and a $100.85 million tranche.

The $403.39 million tranche has a 5.75% coupon, priced at par, and the $100.85 million tranche has a 6.25% coupon, also priced at par.

Proceeds will fund capital improvements to the city's water and sewer system.

Kentucky buildings commission sells

In other pricing news, the Kentucky State Property and Buildings Commission sold Wednesday $401.345 million in series 2009 project No. 96 revenue bonds, said a pricing sheet.

The sale included $64.09 million in series 2009A bonds, $14.17 million in series 2009B taxable bonds and $323.085 million in series 2009C taxable bonds.

The 2009A bonds are due 2012 to 2014 with term bonds due 2029. The serials have coupons from 3% to 5%, and the 2029 bonds have a 5% coupon, priced at 97.371, and the other 2029 bonds have a 5% coupon but are not being reoffered.

The 2009B bonds are due 2010 and 2011 with 0.72% and 1.627% coupons, respectively. Both priced at par.

The 2009C bonds are due 2015 to 2019 with term bonds due 2022 and 2029. The serials have coupons from 4.077% to 5.061%, all priced at par. The 2022 bonds have a 5.561% coupon, priced at par, and the 2029 bonds have a 6.155% coupon, also priced at par.

Morgan Stanley & Co. Inc. was the senior manager.

Proceeds will be used to construct and equip projects for the commission.

Puerto Rico plans $350 million sale

Moving to upcoming sales, the Commonwealth of Puerto Rico is expected to price $350 million in series 2009B public improvement refunding bonds, said a preliminary official statement.

The bonds will be sold through senior managers Morgan Stanley and J.P. Morgan Securities Inc.

Proceeds will be used to refund interest, but not principal, on existing debt.

In other upcoming deals, the Illinois Finance Authority plans to bring to market $240 million in series 2009B revenue bonds for Central DuPage Health of Winfield, Ill., said a preliminary official statement.

The bonds will be sold through Morgan Stanley and Wells Fargo Securities Inc.

Proceeds will be used to reimburse the health system for the construction, improvement, equipment and acquisition of its facilities as well as to refund the health system's series 2000B, 2000C, 2004A, 2004B and 2004C bonds.

Honolulu to bring $234.65 million

Moving out to the Aloha State, the City of Honolulu is gearing up to sell $234.645 million in series 2009 general obligation bonds, said a preliminary official statement.

The offering includes $140.285 million in series 2009D G.O. bonds, $50.46 million in series 2009E Build America Bonds and $43.9 million in series 2009F G.O. bonds.

The bonds (//AA) will be sold on a negotiated basis with Merrill Lynch & Co. and Piper Jaffray & Co. as the lead managers.

The 2009D bonds and the 2009E bonds are due 2014 to 2034. The 2009F bonds are due 2014 to 2020.

Proceeds will be used to refund the city's series 1993 and 1997 bonds and to fund the expansion of the city's waste-to-energy facility.

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