Municipal long bonds trade better; Florida Department of Management prices; light flows

By Cristal Cody and Aaron Hochman-Zimmerman

New York, Feb. 25 - Municipals held steady on Wednesday as Treasuries sold off in the face of a new supply dump from the government.

Investors continued to hold their attention on and support for the longer-term paper, a trader said.

"Munis, finally, on the long end held in there," she said.

Still, in recent days supply has been short and relatively well supported, she said.

Trading was typically slow, but on the primary side New York was able to price its $520 million issue of series 2009H general obligation bonds.

Marion County School District prices $192 million

The Marion County School District No. 24J in Salem, Ore., priced $192 million series 2009 G.O. bonds (A1/AA-), according to Tim Viles, the district's financial services director.

The deal went "very smooth," Viles said.

Seattle Northwest Securities Corp. acted as underwriter for the negotiated deal.

Proceeds will be used for capital construction projects throughout the district.

Florida prices with 5.01% TIC

On Wednesday, the Florida Department of Management Services priced $125.855 million in certificates of participation with a 5.01% true interest cost, the Florida division of Bond Finance told Prospect News.

The series 2009A COPs (Aa2/AA+/AA) priced with 4% to 5.25% coupons to yield 2% to 5.5%, said Carol Bagley, bond development supervisor for the state.

The COPs priced with a premium of 109.146 on the front end and were discounted to 97.036 on the back end of the maturities, she said.

The COPs have serial maturities from 2010 through 2028.

Barclays Capital Inc. was the winning bidder out of four bids in the competitive sale.

The proceeds will be used to acquire property and build and equip a 2,000-bed adult male medium-security private correctional facility in Santa Rosa County, Fla.

Two more from sunny Florida

Also in the Sunshine State, Miami-Dade County in Florida plans to sell $203.8 million in G.O. bonds, according to a preliminary official statement.

The series 2008B1 bonds (Aa3/AA-/) will price through a negotiated sale led by senior manager Goldman, Sachs & Co.

The proceeds will be used for the Building Better Communities Program to pay for capital projects, including for water, sewer, park and housing improvements.

Also, the School Board of Broward County in Fort Lauderdale, Fla., plans to price $131.56 million in COPs.

The series 2009A COPs (Aa2/AAA/AAA) have serial maturities from 2010 through 2024 and terms due in 2029 and 2034.

The COPs are insured by Assured Guaranty Corp.

Banc of America Securities LLC is the senior manager of the negotiated sale.

The proceeds will be used for lease purchase financing to acquire, construct and equip new school facilities, including a new elementary school and classroom additions.

Golden Eagles plan $450 million

In other upcoming sales, the trustees of the California State University in Long Beach plan to price $450 million in revenue bonds on March 5, according to the state treasurer's office.

The series 2009A bonds also will be sold through a retail order period on March 4.

Barclays Capital Inc. is the senior manager of the negotiated sale.

The proceeds will be used to finance and refinance the acquisition, construction, improvement and renovation of university facilities.

In other new collegiate announcements, the Board of Trustees of the University of Illinois in Urbana intends to price $84.01 million in auxiliary facilities system revenue bonds, according to a preliminary official statement.

The series 2009A bonds (Aa3/AA-/) have serial maturities from 2010 through 2019 and terms due in 2021, 2029 and 2038.

Citigroup Global Markets Inc. is the senior manager of the negotiated sale.

The co-managers are Loop Capital Markets, LLC, Morgan Stanley & Co., Banc of America Securities LLC and Podesta & Co.

The proceeds will be used to pay for improvements and additions to university facilities and to refund the $67.015 million outstanding principal from the series 2005B variable-rate revenue bonds.

Cuyahoga Community College to price

Meanwhile, the Cuyahoga Community College District in Cleveland expects to price the previously announced $125 million in general receipts bonds on March 4, a sellside source told Prospect News.

The series 2009C bonds (Aa3/AA-/) have serial maturities from Aug. 1, 2009 through Aug. 1, 2029, according to a preliminary official statement.

KeyBanc Capital Markets Inc. is the senior manager of the negotiated sale.

The proceeds will be used to construct, equip, renovate and furnish college facilities and to retire the series 2009B notes.

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