Municipals seen mostly flat as primary action heats up; Citizens Property prices $2 billion

By Sheri Kasprzak

New York, March 23 - Municipal yields were once again largely unchanged with short-term yields seen slightly higher, traders reported.

"It's relatively flat," said one trader.

"The short end of the curve is probably up 1 or 2 basis points. The longer end, out past 10 years or so, is mostly flat."

Another trader said he felt the tone was more unchanged.

"If there's any movement out there, it's very slight and probably very short-term, like from one- to five-year bonds," the trader said.

In secondary action Tuesday, the Orlando-Orange County Expressway Authority of Florida's series 2010A revenue bonds were moving. The 4.5% 2029 bonds were trading at 4.45%.

Elsewhere, the City of New York's series 2010G-1 Build America Bonds were seen trading. The 6.268% 2031s were seen at 5.963% Tuesday afternoon.

Citizens Property bonds price

Looking to the primary market, Citizens Property Insurance Corp. of Florida priced $2 billion in series 2010 high-risk account senior secured bonds (A2/A+/), said a pricing sheet.

The bonds were sold on a negotiated basis with J.P. Morgan Securities Inc. as the senior manager.

The sale included series 2010A-1 and 2010A-2 bonds.

The 2010A-1 bonds are due 2013 to 2017 with coupons from 3% to 5.25%. The 2010A-2 bonds are due 2011 with a 2% coupon.

Proceeds will be used to reimburse the corporation's proceeds accounts for amounts disbursed to pay claims.

Based in Jacksonville, Fla., Citizens is a homeowners' insurance provider.

New York MTA sells RANs

Also on Tuesday, the Metropolitan Transportation Authority of New York City priced $475 million in series 2010 revenue anticipation notes, said a pricing sheet.

The notes (//F1+) were sold through Citigroup Global Markets Inc. and M.R. Beal & Co.

The notes are due Dec. 31, 2010. They have a 2% coupon and were priced to yield 0.38%.

The authority is expected to use the proceeds to fund operating and maintenance expenses.

South Carolina brings $170 million

Elsewhere in the day's active primary market, the State of South Carolina priced $170 million in series 2010A state economic development general obligation bonds Tuesday, said a pricing sheet.

The bonds (//AAA) were sold competitively. Bank of America Merrill Lynch won the bid with a 3.27% true interest cost.

The bonds are due 2011 to 2025 with 2% to 5% coupons.

Proceeds will be used by Boeing Co. to develop a site in Charleston, S.C., for a new manufacturing facility.

St. Louis bonds price

In other competitive offerings, the City of St. Louis sold Tuesday $121.26 million in series 2010 special obligation bonds, said pricing sheets.

The sale included $63.125 million in series 2010A tax-exempt bonds and $58.135 million in series 2010B Build America Bonds. The 2010A bonds are due 2012 to 2026, and the 2010B bonds are due 2026 and 2035.

The bonds (Aa1/AA+/) were sold competitively. Jefferies & Co. won the tax-exempt bonds with a 3.242199% TIC, and Morgan Keegan & Co. Inc. won the Build America Bonds with a 5.587091% TIC. Excluding the subsidy, the TIC for the Build America Bonds is 3.660102%.

The state will use the proceeds to fund improvements to the city's emergency communications system.

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