Muni yields hold steady; Virgin Islands Public Finance sells $387.51 million in revenue bonds

By Sheri Kasprzak

New York, July 8 - Muni yields were largely unmoved on Thursday as investors seemed to turn their attention to the trickle of new deals priced during the session, said a trader.

"It's one of two things," he said. "Either everyone's heading to the beach, or everyone's busy with the new stuff pricing today. It's a shortened week, so it makes sense that investors are distracted during the one day when we're actually getting some new money."

Amid those new deals, the Virgin Islands Public Finance Authority brought $387.505 million in series 2010 revenue bonds to the table. The offering was downsized from $396.265 million.

The deal included $291.605 million in series 2010A senior-lien revenue bonds (Baa2/BBB/BBB+) and $95.9 million in series 2010B subordinate-lien revenue bonds (Baa2/BBB-/BBB), said a pricing sheet.

The 2010A bonds are due 2012 to 2017 with term bonds due 2020, 2025 and 2029. The coupons range from 4% to 5%. The 2020 bonds have a 5% coupon and priced at 106.410. The 2025 bonds have a 5% coupon and priced at 100.628, and the 2029 bonds have a 5% coupon and priced at 98.776.

The 2010B bonds are due 2020, 2025 and 2029. The 2020 bonds have a 4.25% coupon and priced at 98.206. The 2025 bonds have a 5% coupon and priced at 98.734. The 2029 bonds have a 5.25% coupon and priced at 99.393.

Jefferies & Co. and Citigroup Global Markets Inc. were the lead managers.

The authority intends to use the proceeds for working capital and to refinance a portion of a working capital credit facility.

Montgomery brings bonds

Elsewhere, Montgomery County in Maryland priced $325 million in series 2010 consolidated public improvement bonds, said a pricing sheet.

The bonds were sold competitively with Bank of America Merrill Lynch winning the bid.

The deal included $178.75 million in series 2010A tax-exempt bonds, $122.55 million in series 2010B Build America Bonds and $23.7 million in series 2010C taxable bonds.

The 2010A bonds are due 2011 to 2022 with coupons from 2% to 5%.

The 2010B bonds are due 2023 to 2030 with 4.75% to 5.4% coupons.

The 2010C bonds are due 2023 to 2030 with 4.75% to 5.4% coupons.

Proceeds will be used to refinance all or a portion of the county's commercial paper notes, which were used to construct, acquire and equip county facilities, as well as finance current capital projects.

The county seat is Rockville, Md.

Miami school bonds price

In other primary action, the School District of Miami-Dade County in Florida priced $250 million in series 2010 tax anticipation notes, said a term sheet.

The notes are due Jan. 17, 2011, have a 1.5% coupon and priced at par.

The notes were sold on a competitive basis with Piper Jaffray & Co. as the winning bidder. The true interest cost came in at 0.31%.

De Lara Associates and Public Resources Advisory Group Inc. were the financial advisers.

Proceeds will be used to fund operating expenses for the district ahead of the collection of ad valorem taxes.

Mississippi settles deal

Also during the session, the Mississippi Development Bank sold $165.165 million in series 2010 general obligation bonds (/AA-/AA), said a term sheet.

The sale included $95.275 million in series 2010C Walnut Grove Youth Correctional Facility project refunding bonds and $69.89 million in series 2010D East Mississippi Correctional Facility project refunding bonds.

The 2010C bonds are due 2016 to 2023 with a term bond due 2027. The serial bonds all have 5% coupons. The 2027 bonds have a 5.25% coupon and priced at 106.082.

The 2010D bonds are due 2016 to 2023 with a 2027 term bond. The serials have 5% coupons, and the 2027 bonds have a 5.25% coupon and priced at 106.082.

Morgan Stanley & Co. Inc. was the senior manager.

Proceeds will be used to refund the development bank's series 2008A and 2008B bonds, which were used to finance a loan to the correctional facilities for improvements.

The bank, based in Jackson, Miss., provides funding for local governments.

Oklahoma sells bonds

The State of Oklahoma priced Thursday $106.965 million in series 2010 G.O. Oklahoma building bonds, said a term sheet.

The bonds (Aa2/AA+/AA+) were sold through J.P. Morgan Securities Inc.

The offering included $102.67 million in series 2010A refunding bonds and $4.295 million in series 2010B taxable refunding bonds.

The 2010A bonds are due 2013 to 2018 with coupons from 2% to 5%. The 2010B bonds are due 2013 with a 1.59% coupon and priced at par.

The state will use the proceeds to refund existing bonds, which were used to finance improvements and repairs to state buildings and facilities.

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