Municipal yields close flat; Louisiana set to price $405.3 million of gas and fuel tax bonds

By Sheri Kasprzak

New York, Aug. 16 - Municipal yields kicked off the week largely unmoved with light secondary activity, one trader reported.

"It's relatively quiet," he said.

"Yields aren't moving a whole lot. Not a lot is trading. It's been really uneventful."

Amid the light trading, the election of 2008 series 2010 bonds issued by Grossmont Union School District of California were seen in action. The 4.75% 2040 bonds were trading at 4.669%.

Meanwhile, issuers coming to market now can expect to get good pricing, said one sellsider reached during the afternoon.

"It's a great time to price," said the sellsider.

"I should say, it's a great time to price if you're a solid issuer with a good rating and a good plan. Those are going to be the issuers that get the best bargain right now, but it's really a good time for just about everyone."

Louisiana sale ahead

Tuesday's primary action will pick up a bit, led by a $405.3 million sale of series 2010B second-lien gasoline and fuel tax revenue bonds from the State of Louisiana.

The bonds (Aa2/AA/) will be sold through Goldman, Sachs & Co. and Citigroup Global Markets Inc.

The bonds are due 2013 to 2030 with term bonds due 2035, 2040 and 2045.

The state plans to use the proceeds to construct and maintain the New Florida Avenue Bridge and the Interstate 12 to Bush Highway project, also known as Louisiana Highway 3241.

Kentucky deal planned

Also coming up during the week, the Kentucky Asset/Liability Commission is set to bring $468.15 million in series 2010 general fund funding notes through J.P. Morgan Securities Inc.

The bonds are due 2011 to 2020.

Proceeds will be used to finance or refinance outstanding obligations and to fund state medical insurance fund obligations for the Teachers' Retirement System of the State of Kentucky.

Kansas DOT bonds to price

In other upcoming offerings during the week, the Kansas Department of Transportation is set to bring $325 million in series 2010 revenue Build America Bonds (Aa1/AAA/AA+) with Barclays Capital Inc. as the senior manager.

The bonds are due 2035, and proceeds will finance projects under the department's 10-year capital plan.

Another deal set for the week comes from Sonoma County, Calif. The county is expected to price $289.335 million in series 2010A taxable pension obligation bonds (/AA-/AA) through JPMorgan and Bank of America Merrill Lynch.

The bonds are due 2010 to 2024 with a term bond due 2029.

Proceeds will be deposited to the county's pension fund.

The county seat is Santa Rosa, Calif.

Miami-Dade sets offering

Out on the horizon, Miami-Dade County in Florida plans to bring to market $217.26 million in transit system sales surtax revenue bonds, said a preliminary official statement.

The offering includes $13.39 million in series 2010A bonds and $203.87 million in series 2010B Build America Bonds.

The maturities have not been set.

Loop Capital Markets LLC is the lead manager.

Proceeds will be used to finance bus service, rapid transit and major highway improvements.

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