Municipal yields feel firmer; Ohio Water prices $451.36 million water pollution control bonds

By Sheri Kasprzak

New York, Aug. 12 - Municipal yields were largely unchanged but retained a firmer tone, said a trader.

"Yields are basically flat, but there's still a firm tone out there," said the trader reached in the afternoon.

"[Secondary] trading has been pretty quiet overall."

Meanwhile, a few offerings came to market on Thursday, led by a $451.355 million sale of series 2010B water pollution control loan fund revenue bond from the Ohio Water Development Authority.

The bonds (Aaa/AAA/) were sold through Morgan Stanley & Co. Inc., said a pricing sheet.

"From what I've seen, it went really well for them," said one sellsider who saw the deal.

"Triple-A rated issuers are getting the best pricing. Investors are really looking for the highly rated bonds."

The 2010B-1 bonds are due 2014 to 2018 with coupons from 2% to 5%. The 2010B-2 bonds are due 2019 to 2024 with a term bond due 2034. The serial coupons range from 3.492% to 4.192%, all priced at par. The 2034 bonds have a 4.879% coupon priced at par.

In reoffering news, the 2018 series 2010B-1 bonds were moving. The 4% bonds were seen trading at 2.31%, the same as pricing. The 2024 series 2010B-2 bonds also received interest from investors. The 4.192% bonds were seen at 4.001% after pricing at par.

Proceeds will be used for the authority's water pollution control loan fund and to fund the debt service reserve fund for the series 2010B water quality bonds.

The Columbus, Ohio-based authority constructs and manages the state's water infrastructure and resources.

Pittsburgh arena bonds price

Elsewhere, the Sports and Exhibition Authority of Pittsburgh and Allegheny County in Pennsylvania sold Thursday $173.765 million in series 2010 regional asset district sales tax revenue bonds, said a pricing sheet. The deal was downsized from $180 million.

The bonds (Baa1) were sold through PNC Capital Markets LLC.

The bonds are due 2011 to 2025 with a term bond due 2031. The serial coupons range from 2% to 5%. The 2031 bonds have a 5% coupon priced at 106.623.

Proceeds will be used to construct a hockey arena in Pittsburgh.

Sonoma to sell bonds

Looking to upcoming sales, the County of Sonoma in California plans to sell $289.335 million in series 2010A taxable pension obligation bonds, said a preliminary official statement.

The bonds (/AA-/AA) will be sold on a negotiated basis with J.P. Morgan Securities Inc. and Bank of America Merrill Lynch as the senior managers.

The bonds are due 2010 to 2024 with a term bond due 2029.

Proceeds will be deposited to the county's pension fund.

The county seat is Santa Rosa, Calif.

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