New Jersey Transportation Trust Fund brings $1.5 billion bonds; municipal yields close flat

By Sheri Kasprzak

New York, Oct. 14 - Municipal yields closed out the day mostly unchanged, according to a trader who said that there was just enough primary activity to keep investors out of the secondary market.

"It's been pretty quiet," he said.

"I think a lot of people are still looking at primary. Yields are not moving by much, if at all."

Heading up the relatively busy primary day was a $1.5 billion sale of series 2010 transportation system bonds from the New Jersey Transportation Trust Fund.

The offering included $1 billion in series 2010C Build America Bonds, $485.785 million in series 2010D bonds and $14.1 million in series 2010E federally taxable bonds, said a pricing sheet.

The 2010C bonds are due 2028 and have a split maturity with a 5.754% coupon and a 6.104% coupon, both priced at par. The 2010D bonds are due 2016 to 2019 and 2022 to 2024 with coupons from 3% to 5.25%. The 2010E bonds are due 2017 and have a 3.6% coupon priced at par.

Barclays Capital Inc. was the senior manager for the bonds (//AA-).

Proceeds will be used to finance capital improvements and refund debt.

Chicago BOE bonds price

Elsewhere, the Chicago Board of Education sold $382.125 million in series 2010 unlimited tax general obligation bonds (Aa2/AA-/A+), said a pricing sheet.

The deal included $257.125 million in series 2010C qualified school construction bonds and $125 million in series 2010D Build America Bonds.

The 2010C bonds are due 2029 and have a 6.319% coupon priced at par. The 2010D bonds are due 2040 and have a 6.519% coupon, also priced at par.

Loop Capital Markets LLC was the senior manager for the 2010C bonds, and Siebert Brandford Shank & Co. LLC was the senior manager for the 2010D bonds. Siebert Brandford Shank was also a co-manager for the 2010C bonds, and Loop was a co-manager for the 2010D bonds.

The board intends to use the proceeds to construct new schools and renovate existing school facilities.

Michigan sells G.O. bonds

In other primary action, the State of Michigan brought $219.41 million in series 2010 G.O. refunding bonds on Thursday, said a pricing sheet.

The sale included $83.825 million in series 2010B G.O. school loan and refunding taxable bonds, $46.585 million in series 2010A G.O. environmental program refunding tax-exempt bonds and $89 million in series 2010B environmental program federally taxable refunding bonds.

The bonds (Aa2/AA-/) were sold through Bank of America Merrill Lynch.

The 2010B school loan bonds are due 2016 to 2020 with 3.029% to 4.14% coupons, all priced at par. The 2010A environmental program bonds are due 2012 to 2020 with coupons from 2% to 5%. The 2010B environmental program bonds are due 2013 to 2015 with 1.772% to 2.552% coupons, all priced at par.

Proceeds will be used to fund capital improvements and refund debt.

Ohio Housing bonds price

Also on Thursday, the Ohio Housing Finance Agency priced $130 million in series 2010-1 single-family mortgage revenue bonds (A1), said a pricing sheet.

The bonds were sold through Citigroup Global Markets Inc.

The bonds are due 2011 to 2020 with term bonds due 2025 and 2028. The serial coupons range from 0.45% to 3.25%, all priced at par. The 2025 bonds have a 4% coupon priced at par. The 2028 bonds have a split maturity with a 4.125% coupon, priced at par, and a 5% coupon, also priced at par.

Proceeds will be used to fund mortgage loans.

Rancho California sells bonds

The Rancho California Water District Financing Authority priced $100.785 million in series 2010A revenue Build America Bonds on Thursday, said a term sheet.

The bonds (Aa2/AA+/AA+) were sold through Bank of America Merrill Lynch with Citigroup as the co-manager.

The bonds are due 2040 and have a 6.337% coupon priced at par.

Proceeds will be used to fund a variety of capital improvement projects outlined in the authority's capital plan as well as reimburse the district for funds already spent on capital improvements.

Triborough Bridge deal ahead

Looking to upcoming sales, the Triborough Bridge and Tunnel Authority of New York is expected to come to market with $346.96 million in series 2010A general revenue bonds on Wednesday, said a preliminary official statement.

The offering is comprised of $66.56 million in series 2010A-1 revenue bonds and $280.4 million in series 2010A-2 Build America Bonds.

The bonds (Aa2//AA) will be sold competitively with Lamont Financial Services Corp. as the financial adviser.

The 2010A-1 bonds are due 2011 to 2020, and the 2010A-2 bonds are due 2021 to 2040.

Proceeds will be used to finance capital transportation projects as well as refinance the Metropolitan Transportation Authority Bridge and Tunnels' general revenue bond anticipation notes.

Mississippi sale set

Out on the horizon, the State of Mississippi is set to price $650.67 million in series 2010 G.O. bonds, said preliminary official statements.

The sale includes $233.975 million in series 2010D taxable G.O. bonds, $45 million in series 2010E recovery zone economic development bonds and $371.695 million in series 2010F Build America Bonds.

The 2010D bonds are due 2011 to 2023. The 2010E bonds are due 2034 to 2035, and the 2010F bonds are due 2023 to 2034.

Bank of America Merrill Lynch and Morgan Stanley & Co. Inc. are the senior managers.

The series 2010D proceeds will be used to refinance the state's series 2009B G.O. notes and series 2010A-C G.O. notes as well as fund loans. The proceeds from the series 2010E and 2010F bonds will be used to finance highway capital improvements, economic development projects and other capital projects.

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