Muni yields seen firmer; New York Metropolitan Transportation Authority brings $657.03 million

By Sheri Kasprzak

New York, Feb. 4 - Muni yields were seen better by 3 to 4 basis points across the curve on Thursday, a side effect of a sour stock market, traders reported. Meanwhile, just a day after it was postponed, the Metropolitan Transportation Authority of New York came to market with its $657.03 million sale of series 2010B revenue bonds.

The sale was postponed due to a downgrade of the authority's revenue bonds by Moody's Investors Service. Moody's downgraded the bonds Wednesday to A3 from A2.

The sale included $607.83 million in series 2010B-1 Build America Bonds and $49.2 million in series 2010B-2 tax-exempt bonds.

The 2010B-1 bonds are due 2018 to 2024 with term bonds due 2031 and 2039 with coupons from 5.204% to 6.648%, all priced at par. The 2010B-2 bonds are due 2011 to 2017 with 2.5% to 5% coupons. The full pricing data on the tax-exempt bonds was not immediately available.

Barclays Capital Inc. was the senior manager for the deal.

Proceeds will be used to fund transportation projects.

In the broader market Thursday, a trader said, "Munis are benefiting somewhat from weaker stocks. We're getting more interest than usual. I think a drop in stocks might be attracting more interest in munis than we normally see."

Illinois Finance prices Provena bonds

Also in primary action, the Illinois Finance Authority priced Thursday $126 million in series 2010 revenue bonds, said a pricing sheet. The bonds were sold for Provena Health.

The sale included $115.395 million in series 2010A bonds and $10.605 million in series 2010B bonds.

The 2010A bonds are due 2010 to 2022 with a term bond due 2028. The coupons range from 5% to 6.25%.

The 2010B bonds are due 2034 and have a 6% coupon.

Goldman, Sachs & Co. was the lead manager.

Proceeds will be used to reimburse Provena for costs associated with constructing, acquiring, equipping and renovating Provena facilities.

Provena is based in Mokena, Ill.

Los Angeles USD to sell $1.75 billion

In upcoming offerings, the Los Angeles Unified School District plans to bring to market $1.746 billion in series 2010 general obligation bonds, said a preliminary official statement.

The sale includes series 2010KRY tax-exempt bonds, series 2010RY Build America Bonds, series 2010A G.O. refunding bonds and series 2010I federally taxable G.O. bonds.

The bonds (Aa3/AA-/) will be sold on a negotiated basis. Citigroup Global Markets Inc., Barclays, Goldman Sachs and Morgan Stanley & Co. Inc. are the joint bookrunners for the RY bonds. The joint senior managers for the KRY bonds are Citigroup and Morgan Stanley. Citigroup is the sole manager for the series I bonds and the series A bonds.

Proceeds will be used to construct new neighborhood schools, repair and rehabilitate existing schools, improve technology systems and purchase new library books. The rest will be used to refund existing debt.

Wisconsin to price $202.98 million

Also ahead, the State of Wisconsin is expected to price $202.975 million in series 2010-1 G.O. refunding bonds, said a preliminary official statement.

Bank of America Merrill Lynch is the senior manager.

The bonds are due 2012 to 2029.

Proceeds will be used to refund existing bonds.

Anchorage sale ahead

Coming up on Tuesday, the Municipality of Anchorage in Alaska plans to sell $120 million in series 2010 G.O. tax anticipation notes, according to a notice of sale.

The notes (/SP-1+/) will be sold on a competitive basis with FirstSouthwest Co. as the financial adviser.

The notes are due Dec. 29, 2010.

Proceeds will be used to fund capital expenditures ahead of the collection of certain taxes.

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