New York City brings $1.83 billion G.O. bonds; San Diego County prices; munis end day firmer

By Sheri Kasprzak

New York, Sept. 30 - The City of New York dominated municipal bond action Wednesday, selling $1.83 billion in general obligation bonds. Meanwhile, the market remained mostly unchanged with some improvement on the long end of the yield curve.

The city sold series 2010A-C G.O. bonds, including $800 million in Build America Bonds.

"I think it went very, very well," said one sellside source connected to the offering.

"They were able to get very good pricing. Their rating certainly made a big difference. They did a similar offering last year, I think, but it didn't go nearly as well. I'm sure market conditions did play a factor [in this offering] compared to that deal."

The bonds (Aa3//AA-) were sold through senior manager Morgan Stanley & Co. Inc.

The 2010A-1 bonds are due 2011 to 2017 with coupons from 1.472% to 4.053%, all priced at par. The 2010A-2 bonds are due 2022 to 2024 with term bonds due 2031 and 2034. The serial coupons range from 4.589% to 4.869%. The 2031 bonds have a 5.206% coupon, priced at par, and the 2034 bonds have a 5.676% coupon, also priced at par.

The 2010B bonds are due 2010 to 2027 with coupons from 2% to 5%.

The 2010C bonds are due 2011 to 2026 with coupons from 3% to 5%.

Proceeds will be used to fund capital expenditures.

In the broader market Wednesday, a trader said municipals were definitely firmer, but shorter-term bonds were mostly unchanged.

"If you go out far enough, say 25, 30 years, you'll find yields down by about 1 to 2 basis points," she said.

Even though secondary activity was light, the trader said, there was still plenty of demand to go around.

"It's not booming, but there is some interest," she added.

The Louisiana Local Government Facilities Corp. saw its series 2009B bonds moving. The 4.25% 2028 bonds were trading at 4.191%.

Elsewhere, the Cascade Water Alliance of Washington State's 5.668% 2029 bonds were seen at par.

San Diego County bonds price

In other pricing news from Wednesday, San Diego County of California priced $73.805 million in series 2009 certificates of participation, said a term sheet.

The COPs (A1/AA+/AA) were sold through RBC Capital Markets Corp. with Merrill Lynch & Co. Inc. and Loop Capital Markets LLC as the co-managers.

The COPs are due 2010 to 2025 with 2% to 5% coupons.

Proceeds will be used to refund the county's series 1997 jail facilities refunding bonds.

Nemours Foundation prices bonds

Elsewhere during the session, the Orange County Health Facilities Authority of Florida priced $137.265 million in series 2009 revenue bonds for the Nemours Foundation, according to a pricing sheet.

The bonds (//AA+) are due 2013 to 2019 with term bonds due 2029 and 2039. The coupons on the serials range from 4% to 5%. The 2029 bonds have a 5% coupon, as do the 2039 bonds. Neither term bond was reoffered.

Morgan Stanley was the senior manager.

Proceeds will be used to fund the construction of a children's hospital and refund the foundation's series 2007 variable-rate bonds.

Los Angeles USD bonds ahead

Coming up for Thursday, primary action looks to be light, but it will be highlighted by a $1.581 billion sale of G.O. bonds from the Los Angeles Unified School District through lead manager Citigroup Global Markets Inc. and Goldman, Sachs & Co.

Citi is the senior manager for the $1.4 billion offering of series 2009G federally taxable Build America Bonds, and Goldman is the joint bookrunner with Citi on the $181 million series 2009KRY tax-exempt bonds.

Proceeds will fund the improvement and expansion of classrooms as well as improvements to the district's libraries, restrooms, laboratories, fire system, security system, lighting system and earthquake retrofitting.

Out on the horizon, another deal is planned out of L.A.

The Los Angeles Metropolitan Transportation Authority plans to sell $320.935 million in series 2009A sales tax revenue refunding bonds, said a preliminary official statement.

The bonds (Aa3/AAA/) will be sold on a negotiated basis with Merrill Lynch as the senior manager.

The bonds are due 2010 to 2026.

Proceeds will be used to refund existing debt and repay commercial paper notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.