Municipal yields make slight gains; New York State brings $448.64 million G.O. bonds to market

By Sheri Kasprzak

New York, Feb. 25 - Municipal yields were seen slightly better on Thursday as Treasuries saw gains. Meanwhile, the State of New York brought to market $448.635 million in series 2010 general obligation bonds.

"We're following Treasuries today," said one trader.

"The whole curve is probably better by a basis point or so."

Amid the trading action Thursday, the Indianapolis Local Public Improvement Bond Bank's recently priced Build America Bonds were seen moving. The 5.966% 2030 bonds were trading at 5.731%. The bonds priced Wednesday at par. The 6.116% 2040s were trading at 5.9% after pricing at par.

Elsewhere, the Miami-Dade County series 2010 water and sewer bonds priced earlier in the week were also in action. The 5% 2039s were trading at 4.66%.

New York prices

In primary action, New York's $448.635 million in series 2010 G.O. bonds included $180.465 million in series 2010A tax-exempt bonds, $51.31 million in series 2010B taxable bonds and $216.86 million in series 2010C Build America Bonds, said pricing sheets.

The bonds were sold competitively. Citigroup Global Markets Inc. took the series 2010A bonds, and TD Securities Inc. took the series 2010B bonds. Morgan Stanley & Co. Inc. won the bid for the Build America Bonds.

The series 2010A bonds are due 2011 to 2030 with term bonds due 2032, 2035 and 2040. The serial coupons range from 2% to 4.125%. The 2032 bonds have a 4.125% coupon, priced at 97.527, the 2035 bonds have a 4.375% coupon, priced at 98.135, and the 2040 bonds have a 4.5% coupon, priced at 98.701.

The 2010B bonds are due 2011 to 2020 with 1% to 4.25% coupons.

The 2010C bonds are due 2018 to 2030 with term bonds due 2035 and 2040. The serial coupons range from 4.09% to 5.54%, all priced at par. The 2035 bonds have a 5.59% coupon, priced at par, and the 2040 bonds have a 5.62% coupon, also priced at par.

Proceeds will be used to fund capital expenditures.

Vermont sells $58.83 million

In other pricing news, the State of Vermont priced $58.83 million in series 2010 G.O. bonds, said a term sheet.

The bonds were sold through lead manager Citigroup.

The deal included $20 million in series 2010B G.O. bonds, $29.155 million in series 2010C-1 G.O. refunding bonds and $9.675 million in series 2010C-2 G.O. refunding bonds.

The 2010B bonds are due 2010 to 2019 with 2% to 2.8% coupons. The 2010C-1 bonds are due 2014 to 2021 with coupons from 2% to 5%, and the 2010C-2 bonds are due 2011 to 2021 with coupons from 2% to 5%.

Proceeds will be used to refund the state's series 2002 and 2005 bonds.

Dasny sale ahead

Looking to upcoming sales, the Dormitory Authority of the State of New York is expected to sell $634.43 million in series 2010 state personal income tax revenue bonds, said a preliminary official statement.

The sale includes $373.955 million in series 2010A tax-exempt bonds, $46.7 million in series 2010B federally taxable bonds and $213.775 million in series 2010C Build America Bonds.

The bonds (/AAA/AA-) will be sold on a negotiated basis with RBC Capital Markets Corp. and Loop Capital Markets LLC as the senior managers.

Proceeds will be used to finance capital grants under the Heal NY Grant Program and various environmental and infrastructure projects throughout the state.

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