Municipals end mostly unchanged; primary action remains heavy; Massachusetts water bonds price

By Sheri Kasprzak

New York, May 8 - Municipals held steady on Wednesday as secondary action picked up somewhat, market sources said.

"I'd call it flat," a trader said in the late afternoon.

"There might be some weakness in spots, but mostly unchanged. We are seeing a pickup in activity [in secondary]."

Massachusetts water bonds sold

One of the week's larger offerings hit the competitive market Wednesday. The Massachusetts Water Pollution Abatement Trust sold $206,325,000 of series 17 state revolving fund bonds.

The offering included $189.62 million of series 17A bonds and $16,705,000 of series 17B taxable bonds.

The series 17A bonds are due 2014 to 2036 with term bonds due in 2039 and 2043. All of the bonds have 5% coupons. The 2039 bonds priced at 116.799, and the 2043 bonds priced at 116.342.

The series 17B bonds are due 2014 to 2016 with 0.25% to 0.45% coupons. They all priced at par.

The bonds (Aaa/AAA/AAA) were sold competitively. The issuer did not immediately return calls for the winning bidder Wednesday.

Proceeds will be used to finance or refinance water abatement and drinking water projects.

Seattle prices G.O. bonds

Elsewhere during the session, the City of Seattle, Wash., came to market with $147.39 million of series 2013 general obligation bonds in a multi-tranche deal, said a pricing sheet.

The deal included $42,315,000 of series 2013A limited tax G.O. improvement bonds (Aa1/AAA/AA+), $55,075,000 of series 2013B taxable limited tax G.O. improvement and refunding bonds (Aa1/AAA/AA+) and $50 million of series 2013 unlimited tax G.O. improvement bonds (Aaa/AAA/AAA).

The 2013A bonds are due 2014 to 2033 with 1% to 4% coupons.

The 2013B bonds are due 2014 to 2025 with 0.25% to 2.5% coupons all priced at par.

The 2013 bonds are due 2014 to 2042 with 2.5% to 5% coupons.

The bonds were sold competitively, but the issuer did not immediately return calls for the winning bidder.

Proceeds will be used to construct, renovate, design, improve or replace the city's Alaskan Way Seawall, Rainier Beach Community Center, golf facilities, fire facilities, the North Precinct, financial IT upgrades, data center and police video mobile data terminals and to refund existing debt.

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