Yields seen unchanged to slightly firmer; Johns Hopkins Health System sells $152.07 million

By Sheri Kasprzak

New York, June 2 - Municipal yields were mostly unchanged to slightly firmer on Wednesday as primary saw a solid amount of pricing action, market insiders reported.

"Yields are holding steady," said one trader.

"You might find some spotty gains, but flat overall. It's still incredibly quiet [in secondary]. It could possibly be due to the short week, but there are also some fears in the market right now. There's just a lot of volatility, pretty much all over. It's not just limited to the stock market, so I think we're seeing some of the negative impact of that."

Meanwhile, primary featured a $152.07 million sale of series 2010 revenue bonds from the Maryland Health and Higher Educational Facilities Authority for Johns Hopkins Health System Obligated Group.

The bonds were sold through Goldman, Sachs & Co.

The bonds are due 2031 to 2035 with a 2040 term bond. The serial coupons range from 4.375% to 4.625%. The 2040 bonds have a 5% coupon, said a pricing sheet.

Proceeds will be used to construct, acquire, renovate and equip two 18-story medical towers to house a cardiovascular and critical care hospital and a children's hospital at the health system's Baltimore campus.

Ventura brings $131 million

Elsewhere, Ventura County of California sold $131 million in series 2010-11 tax and revenue anticipation notes, said a pricing sheet.

The notes (MIG 1/SP-1+/) were sold competitively with Goldman Sachs winning the bid. The true interest cost came in at 0.39%. Fieldman, Rolapp & Associates was the financial adviser.

The 2% notes are due July 1, 2011. The full pricing details were not immediately available.

Proceeds will fund the county's seasonal cash flow requirements for the fiscal year ending June 30, 2011.

The county seat is Ventura, Calif.

Fulton sells notes

Down South, Fulton County in Georgia priced $120 million in series 2010 general fund tax anticipation notes, said a pricing sheet.

The notes (MIG 1//F1+) were sold competitively with Wells Fargo Securities LLC winning the bid.

The 2% notes are due Dec. 31, 2010 and priced at 100.938.

Proceeds from the offering will be used to fund county cash flow requirements.

The county seat is Atlanta.

N.H. hospital bonds price

In other pricing action, the New Hampshire Health and Educational Facilities Authority priced Wednesday $75 million in series 2010 revenue bonds for Dartmouth-Hitchcock Obligated Group, said a term sheet.

"We think pricing came in line with our expectations," said one sellsider connected to the deal.

"For an A-rated name, pricing was very good, in fact. We think we did well by them."

The bonds (/A+/A+) were sold through J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc.

The bonds are due 2035 and 2040. The 2035 bonds have a 5% coupon to yield 5.04%, and the 2040 bonds have a 5% coupon to yield 5.15%.

Proceeds will be used to construct an ambulatory care facility at the health system's Nashua, N.H., campus, as well as construct, equip and rehabilitate facilities in Lebanon, N.H.

Based in Concord, N.H., the authority provides financing for health and educational capital projects. The obligated group is based in Lebanon, N.H., and operates hospitals and other health facilities.

Nashville sale ahead

Coming up on Thursday, the Metropolitan Government of Nashville and Davidson County in Tennessee will lead primary activity with a $575 million offering of series 2010 general obligation bonds through Goldman Sachs.

The deal includes $275 million in series 2010A G.O. improvement and refunding bonds, $250 million in series 2010B Build America Bonds and $50 million in series 2010C taxable G.O. refunding bonds.

Proceeds will be used to construct, acquire, equip and renovate capital projects as well as refund several series of outstanding bonds.

Connecticut sets deal

Looking to the week ahead, the State of Connecticut announced plans to come to market Tuesday with $600 million in series 2010 G.O. bonds through JPMorgan.

The offering includes $200 million in series 2010B G.O. bonds and $400 million in series 2010C G.O. refunding bonds.

The 2010B bonds are due 2011 and 2014 to 2018. The 2010C bonds are due 2011 to 2023.

Proceeds will be used to finance capital expenditures and refund existing debt.

Cook County to price

Also ahead, Cook County in Illinois is expected to bring to market $1.054 billion in series 2010 G.O. bonds, said a preliminary official statement.

The offering includes $400.28 million in series 2010A G.O. refunding bonds, $242.3 million in series 2010B taxable G.O. refunding bonds, $80 million in series 2010C taxable G.O. bonds and $331.895 million in series 2010D-F bonds. The exact breakdown of the 2010D-F tranches was not immediately available.

The 2010A-C bonds will be sold through senior manager Morgan Stanley & Co. Inc.

The 2010D-F bonds will be sold through Loop Capital Markets LLC.

Proceeds will be used to refund existing debt and fund a portion of the county's pension plan. The proceeds will also be used to finance capital projects, including the renovation of the John H. Stoger Jr. Hospital and other hospitals and clinics; the construction and equipment of the county's public safety facility; the improvement and renovation of the county building and administrative offices; and the purchase of county equipment.

The county seat is Chicago.

Harris County sale ahead

Out on the horizon, Harris County in Texas is set to price $260 million in series 2010 refunding bonds, said a preliminary official statement.

The sale includes $100 million in series 2010A unlimited tax road refunding bonds and $160 million in series 2010B permanent improvement refunding bonds.

The bonds will be sold on a negotiated basis with Jefferies & Co. and Mesirow Financial Inc. as the senior managers.

The 2010A bonds are due 2011 to 2028 with a term bond, the maturity of which has not been set. The 2010B bonds are due 2011 to 2028 with a term bond.

Proceeds will be used to refund existing debt.

The county seat is Houston.

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