Yields seen mostly unchanged; Municipal Electric Authority of Georgia preps $2.5 billion sale

By Sheri Kasprzak

New York, March 1 - Municipal yields were largely unmoved on Monday to kick off the week, market insiders said in a fairly quiet session of trading.

"There's been a little bit of activity out there," said one trader.

"I'd call it unchanged. Maybe a touch firmer out there on the long end, but it's been pretty quiet for the most part."

Amid the light trading activity, JEA of Florida's recently priced series 2010A water and sewer bonds were trading. The 3.75% 2012 bonds were trading at 1.683%.

Elsewhere, Energy Northwest of Washington State's series 2010B 4.125% 2023s were trading. The bonds were seen Monday afternoon at 3.8%.

Over in the primary market, activity will taper off slightly from the previous week, but volume will still total in the billions.

The week's new issues are led by a $2.533 billion sale from the Municipal Electric Authority of Georgia. MEAG plans to sell series 2010 Plant Vogtle project bonds in six tranches through Goldman, Sachs & Co.

The offering includes $953.24 million in series 2010A project M Build America Bonds, $19.68 million in series 2010B project M tax-exempt bonds, $1.115 billion in series 2010A project J Build America Bonds, $26.57 million in series 2010B project J tax-exempt bonds, $410.88 million in series 2010A project P Build America Bonds and $8.245 million in series 2010B project P tax-exempt bonds.

Proceeds will be used to construct new Plant Vogtle electric generation facilities.

Dasny to sell $634.43 million

Another large offering during the week comes from the Dormitory Authority of the State of New York. Dasny plans to bring $634.43 million in series 2010 state personal income tax revenue bonds on Wednesday through RBC Capital Markets Corp. and Loop Capital Markets LLC.

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 authority plans to use the proceeds to finance capital grants under the Heal NY Grant Program and various environmental and infrastructure projects throughout the state.

University of Texas sale ahead

Also coming up during the week, the University of Texas System is expected to price $330.51 million in series 2010A revenue finance system bonds on Wednesday, said a preliminary official statement and a sales calendar.

The bonds (Aaa/AAA/AAA) will be sold on a negotiated basis with Wells Fargo Securities Inc. and Citigroup Global Markets Inc. as the senior managers.

Proceeds will be used to refinance a portion of the university system's commercial paper notes as well as finance campus improvements.

The university system is based in Austin, Texas.

Pennsylvania Housing to price

Also on Wednesday, the Pennsylvania Housing Finance Agency plans to bring $140 million in series 2010-108 single family mortgage revenue bonds, said a sales calendar.

The offering includes $9.225 million in series 2010-108A bonds and $130.775 million in series 2010-108B bonds.

Bank of America Merrill Lynch is the senior manager.

The 2010-108A bonds are due 2014 to 2015, and the 2010-108B bonds are due 2010 to 2021 with term bonds due 2025 and 2028.

Proceeds will be used to fund mortgage bonds.

Michigan Muni Bond Authority to sell

In other upcoming sales, the Michigan Municipal Bond Authority is set to sell $241.305 million in series 2010 state revolving fund revenue bonds, said a preliminary official statement.

The sale includes $172.04 million in series 2010 clean water revolving fund pooled project bonds and $69.265 million in series 2010 clean water revolving fund subordinate refunding bonds.

The bonds (/AAA/AAA) will be sold on a negotiated basis with Bank of America Merrill Lynch and Citigroup as the managers.

The pooled project bonds are due 2011 to 2030, and the refunding bonds are due 2010 to 2020.

Proceeds will be used to fund clean water initiatives and refund the authority's series 1998 clean water bonds.

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