Muni rates lag Treasuries; San Francisco utilities commission to bring $453.62 million bonds

By Cristal Cody

Tupelo, Miss., July 16 - Secondary trading in the municipal market was limited on Friday with scarce bids and "the retail side that just did not follow along either," a trader told Prospect News.

"Rates are lagging behind Treasuries," the trader said. "For municipals, it looks like if you didn't get done by 11 o'clock, you might as well close the books."

Several issuers announced new offerings ahead of the weekend, including the Public Utilities Commission of the City and County of San Francisco.

The commission intends to price $453.62 million in revenue bonds (Aa2/AA-/), according to a preliminary official statement.

The sale includes $66.84 million in sub series 2010D bonds and $386.78 million in sub series 2010E bonds.

The bonds are expected to price through a competitive sale on Thursday.

Montague DeRose and Associates and Kitahata & Co. are the financial advisers on the sale.

Proceeds will be used to finance and refinance various capital projects.

Maryland to price

Also coming up in the primary market, the State of Maryland expects to sell $489.76 million in general obligation bonds (Aaa/AAA/AAA), according to a preliminary official statement.

The sale includes $200 million in second series A bonds, $165 million in second series B bonds, $75 million in second series C bonds and $49.76 million in second series D bonds.

The second series A bonds with serial maturities from 2013 through 2018 will price through a negotiated sale, while the remaining tranches will price via competitive sales on July 28.

The second series B bonds have serial maturities from 2013 through 2021.

The second series C bonds have serials from 2022 through 2025.

The second series D bonds are due in 2025.

Citigroup Global Markets Inc. and M&T Securities, Inc. are the senior managers of the negotiated sale.

Proceeds will be used for public purposes, including for state facilities, local governments and grants and loans.

JEA deal ahead

Another offering is expected from JEA of Florida, which plans to sell $189.42 million in revenue bonds, according to a preliminary official statement.

The two-tranche offering includes $182.405 million in series 2010D water and sewer revenue bonds with serial maturities from Oct. 1, 2010 through Oct. 1, 2030 and term bonds due 2036 and 2039.

The other tranche of $7.015 million in series 2010A water and sewer system subordinated revenue bonds have serial maturities from 2013 through 2020.

Wells Fargo Securities is the senior manager of the negotiated sale.

Proceeds will be used to refund outstanding bonds.

The electric utility is based in Jacksonville, Fla.

Ocean County to sell

Later in the month, Ocean County in New Jersey plans to sell $91.09 million in improvement bonds (Aaa//AAA), according to notices of sale released Friday.

The county intends to sell $31.09 million in series 2010 general improvement bonds, $43.83 million in series 2010 G.O. refunding bonds, $15 million in series 2010 general improvement bonds for Ocean County College and $1.17 million in series 2010 college capital improvement bonds.

The bonds will price via a competitive sale on July 27.

Public Financial Management is the financial adviser.

Proceeds will be used to pay for college building costs and to refund a portion of the series 2001, series 2002 and series 2003 general improvement bonds in advance.

The county seat is Toms River, N.J.

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