Yields edge up amid light action, ahead of election results; Boston College sells $195 million

By Sheri Kasprzak

New York, Nov. 2 - Primary action took a day off as the market awaited election results and prepared for a massive deluge of new offerings on Wednesday.

"Long bonds are probably up 2 basis points or so," said one trader reached during the day.

"It almost feels like the calm before the storm. I have a feeling it's going to turn ugly later this week. We've had a huge problem with this push of supply, and it looks like mid to late week, we're going to get smacked again."

Another trader said election results could impact tax-exempts, although the implications might be more long-range.

"If Republicans take over, chances are BABs will be history," he said.

"If that happens, issuers will head to the tax-exempt market. It could mean a huge influx of new issues on the long end of the curve. It would just put a great deal of supply pressure on the long end."

Meanwhile, primary action remained staid as issuers awaited word on local, state and Congressional elections. Heading up the light supply was the Massachusetts Development Finance Authority, which sold $194.97 million of series 2010R revenue bonds for Boston College Tuesday, said a pricing sheet.

The deal included $166.695 million of series 2010R-1 bonds and $28.275 million of series 2010R-2 bonds.

The bonds (Aa3/AA-/) were sold through Barclays Capital Inc.

The 2010R-1 bonds are due 2011 to 2031 with a term bond due in 2040. The coupons range from 4% to 5%. The 2040 bonds have a 5% coupon and were not reoffered.

The 2010R-2 bonds are due 2011 to 2031 with 4% to 5% coupons.

Proceeds will be used to finance or refinance capital improvements to the Boston College campus, including the construction and equipment of a new academic building, as well as to refund existing debt.

Florida BOE sells $173.91 million

Also during the session, the Florida Board of Education priced $173.91 million of series 2010F lottery revenue refunding bonds, said a pricing sheet.

The bonds (A1/AAA/A+) were sold competitively, and Bank of America Merrill Lynch won the bid.

The bonds are due 2013 to 2022 with 4% to 5% coupons.

The board intends to use the proceeds to refund existing debt for $15 million of net present value savings.

Ohio Turnpike bonds price

Elsewhere, the Ohio Turnpike Commission sold $131.3 million of series 2010A revenue refunding bonds, said a pricing sheet.

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

The bonds are due 2021 to 2027 with a 2031 term bond. Coupons range from 4% to 5.25%.

Proceeds will be used to refund the commission's higher-coupon series 1998B and 2001A bonds.

L.A. MTA deal ahead

Heading up a huge influx of new offerings on Wednesday is a $740 million offering of series 2010 Measure R senior sales tax revenue bonds (Aa2/AAA/) from the Los Angeles County Metropolitan Transportation Authority.

The authority is set to price the bonds through Barclays Capital, Citigroup Global Markets Inc. and Goldman, Sachs & Co.

Proceeds will fund capital transportation projects under the authority's long-range plan.

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