Municipal yields end flat to slightly firmer; Washington preps $1.1 billion sale of G.O. bonds

By Sheri Kasprzak

New York, May 21 - Municipal yields closed out the week unchanged to slightly better as investors prepare to eat up another healthy supply of new offerings.

"I'd call it unchanged," said one trader.

"Maybe on the shorter end of the curve, yields are down 1 basis point, possibly 2."

Meanwhile, the calendar of upcoming sales stacked up on Friday, led by a $1.1 billion offering of series 2010F motor vehicle tax general obligation bonds from the State of Washington. The deal is slated to price during the week, although the exact pricing date has not yet been released.

J.P. Morgan Securities Inc. will lead the syndicate selling the bonds (Aa1/AA+/AA+).

Proceeds will be used to reimburse the state for highway and transportation improvements.

Dasny preps deals

The Dormitory Authority of the State of New York has at least two deals scheduled during the week.

On Thursday, the authority plans to bring $800 million in series 2010D state personal income tax revenue Build America Bonds competitively.

Proceeds will finance capital projects at the State University of New York.

Coming up on Wednesday, the authority will price $336.75 million in series 2010A revenue bonds for Mount Sinai Hospital Obligated Group through Goldman, Sachs & Co.

The bonds are due 2012 to 2020 with a term bond due 2026.

Proceeds will be used to refund the group's series 2000A and 2000C bonds.

The Albany-based authority provides financing to qualified organizations for capital projects.

Both the university and hospital group are based in New York.

N.Y. development sale ahead

Also coming up, the New York State Urban Development Corp. is expected to sell $503.18 million in series 2010A service contract revenue refunding bonds Wednesday, said a calendar of upcoming deals.

The offering includes $221.735 million in series 2010A-1 bonds and $281.445 million in series 2010A-2 bonds.

Wells Fargo Securities LLC and Siebert Brandford Shank & Co. LLC are the senior managers.

Both series of bonds are due 2011 to 2022.

Proceeds will refund the corporation's series 2008 bonds.

The corporation, based in New York, provides affordable housing for low- to moderate-income families and individuals.

Arizona plans lottery deal

Also on Wednesday, the State of Arizona plans to sell $449 million in series 2010A lottery revenue bonds, according to a sales calendar.

The bonds (A1/AA-/) will be sold through lead manager JPMorgan.

The bonds are due 2013 to 2029.

Proceeds from the sale will be deposited into the state's general fund to pay appropriated expenditures.

Farmington to price

Also in the Southwest, the City of Farmington, N.M., is set to price $343 million in series 2010 pollution control refunding revenue bonds on Tuesday, said a sales calendar.

The bonds will be sold on a negotiated basis with JPMorgan as the senior manager.

Proceeds from the offering will be used to refund existing pollution control revenue bonds.

Montgomery IDA deal set

In other upcoming deals, the Montgomery County Industrial Development Authority of Pennsylvania plans to price $313.84 million in series 2010 FHA-insured mortgage revenue bonds on Wednesday, said a calendar of upcoming sales.

The bonds will be sold through Goldman Sachs.

The bonds are due 2013 to 2020 with term bonds due 2025, 2030 and 2038.

Proceeds will be used to construct new hospitals in East Norriton, Pa.

Based in Norristown, the authority provides loans to small businesses and qualified organizations.

California powers sale

Out West, the Southern California Public Power Authority plans to price $276.93 million in series 2010 Canyon Power Project revenue bonds on Wednesday, said a sales calendar.

The offering includes $106.205 million in series 2010A bonds and $170.725 million in series 2010B Build America Bonds.

The lead manager is Citigroup Global Markets Inc.

The 2010A bonds are due 2016 to 2028, and the 2010B bonds are due 2030 and 2040.

Proceeds will be used to construct, develop and acquire the Canyon Power Project as well as retire the authority's series 2009 notes.

Based in Pasadena, the authority is comprised of joint power agencies and finances the construction of new power plants and transmission lines.

North Texas education deal

In primary action, the North Texas Higher Education Authority Inc. priced $207.2 million in series 2010-1 student loan revenue floating-rate bonds (/AAA/AAA) on Thursday, said a pricing sheet.

The sale included $113.96 million in class A-1 bonds and $93.24 million in class A-2 bonds.

The class A-1 bonds are due July 1, 2019 and priced at Libor plus 40 bps. The class A-2 bonds are due July 1, 2030 and priced at Libor plus 90 bps.

Bank of America Merrill Lynch was the senior manager.

Proceeds will fund student loans.

The Arlington-based authority grants student loans to eligible students.

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