Denver brings $72.89 million revenue refunding bonds; secondary boosted by better Treasuries

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, April 14 - Tuesday proved to be a solid day for municipals as the federal government purchased $7.3 billion in Treasuries, pushing Treasuries up by about 4 basis points.

"We're looking pretty good today," said one trader reached during the afternoon.

"We're getting some benefit from Treasuries. On the long end, we're down maybe 2 or 3 bps."

Meanwhile, in the primary market, the City and County of Denver priced $72.885 million in series 2009 excise tax revenue refunding bonds, said Margaret Danuser, Denver's debt administrator.

The bonds (A2/A-/A+) were sold through lead manager Morgan Stanley & Co. Inc.

The bonds are due 2021 to 2023 with 6% coupons across the board and yields from 4.65% to 4.95%.

A trader said Tuesday that he hadn't seen any reoffering activity on the bonds.

Proceeds will be used to refund the city's variable-rate series 2001B bonds.

Charles County prices

Elsewhere in the primary market, Charles County in Maryland priced $59.265 million in series 2009 general obligation bonds, said Crystal Hill, spokeswoman for the county.

Citigroup Global Markets Inc. won the competitive bid with a 3.47% true interest cost.

There were eight bidders for the sale, said Hill, with TIC bids from 3.47% to 3.58%.

The full details of the offering were not immediately available Tuesday. The sale included $21.265 million in series 2009A tax-exempt refunding bonds and $36 million in series 2009B tax-exempt consolidated public improvement bonds.

The series 2009A bonds are due 2010 to 2017, and the 2009B bonds are due 2010 to 2029.

The county also sold $2 million in series 2009C taxable public improvement bonds. Morgan Keegan & Co. Inc. won the competitive bid for those bonds with a 4.85% TIC. Those bonds are due 2010 to 2024.

"During these incredibly challenging fiscal times, it is more important than ever to manage every expenditure," Deborah Hudson, head of the county's fiscal and administrative services, said in a statement.

"The sound fiscal management and policies of the county commissioners is reflected in the reaffirmation of our bond rating from all three rating agencies, the number of bids submitted and the interest rate received on our public bond issue."

Davenport & Co. LLC was the financial adviser.

Proceeds will be used to construct public buildings and facilities as well as refund debt.

The county seat is La Plata, Md.

MTA plans $650 million

Looking to upcoming sales, the Metropolitan Transportation Authority in New York is expected to sell $650 million in series 2009 dedicated tax fund bonds, said a preliminary official statement.

The sale includes $450 million in series 2009B bonds and $200 million in series 2009C federally taxable Build America Bonds.

J.P. Morgan Securities Inc. is the senior manager.

Proceeds will be used to finance commuter and transit projects as well as refinance debt.

SCPPA seeks more flow

The Southern California Public Power Authority plans to offer a two-tranche issue of $251.855 million in refunding revenue bonds, according to chief financial officer Craig Kohler.

The authority will price $140.320 million series 2009-1 refunding revenue bonds and $111.535 million series 2009-2 refunding revenue bonds on April 21.

The bonds will carry a weekly rate and mature on July 1, 2036.

Citigroup Global Markets will act as bookrunner and remarketing agent for the deal.

Proceeds from the sale will be used to repay outstanding debt and create a reserve account for debt service.

The authority is located in Pasadena, Calif.

Secondary market firms

In other news, the secondary market improved on Tuesday, buoyed by an improved Treasury market.

A trader noted that the long end of the yield curve was down by a couple of basis points on the day. Trading volume, said the trader, remained fairly light as the market prepares for the busiest day for primary action, Wednesday.

Looking to specific trades, Honolulu's recently priced series 2009A bonds were seen moving. The 5.25% 2030s were trading at 4.647% Tuesday. The 4% 2012s were trading at 1.75%, and the 5% 2034s were seen at 4.66%.

In other trades, the City of New York's recently priced and upsized series 2009I-1 G.O. bonds were trading. The 5.3% 2027s were trading at 4.994%. The 5.25% 2023s were seen at 4.692%.

Elsewhere, the California State Public Works Board's series 2009 Department of General Services bonds were moving. The 4% 2011s were seen at 2.662% after dropping by a basis point during the course of the day. The bonds priced Thursday to yield 2.66%.

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