Municipal yields hold steady in light trading; Alabama prices $190.24 million in G.O. bonds

By Sheri Kasprzak

New York, May 11 - Municipal yields were largely unchanged Tuesday with some spots of the market slightly improved, said one trader.

"It has been very quiet this week," said the trader.

"A lot of people are scared about international issues right now. It's really a situation where investors aren't really sure what's going to happen next, so they're just taking a wait-and-see approach. Overall, it was basically unchanged, maybe slightly better in spots because Treasuries were a little better this morning."

In primary action, the State of Alabama sold $190.235 million in series 2010 general obligation bonds in two tranches Tuesday, said term sheets.

The sale included $80.235 million in series 2010C G.O. refunding bonds and $110 million in series 2010D capital improvement bonds.

The bonds were sold on a competitive basis with Citigroup Global Markets Inc. winning the bid. The financial adviser was Public FA, Inc.

The 2010C bonds are due 2012 to 2021 with coupons from 3.25% to 5%. The 2010D bonds are due 2013 to 2032 with coupons from 3% to 5%. A number of the 2010D bonds were not reoffered.

Proceeds from the deal will be used to fund capital expenditures and refund debt.

Orange sanitation bonds price

Elsewhere, the Orange County Sanitation District of California priced $80.27 million in series 2010A wastewater revenue obligation Build America Bonds, said a pricing sheet.

The bonds (/AAA/AAA) were sold competitively with Citigroup winning the bid. The true interest cost came in at 3.68%. Public Resources Advisory Group was the financial adviser.

The bonds are due 2036 and 2040. The 2036 bonds have a 5.56% coupon, priced at par, and the 2040 bonds have a 5.58% coupon, also priced at par.

Proceeds will be used to fund the construction, acquisition and installation of improvements to the district's wastewater collection, treatment and disposal facilities.

Georgia gas bonds sold

In other news, the Municipal Gas Authority of Georgia sold Tuesday $75 million in series I gas revenue refunding bonds, according to a pricing sheet.

The bonds (MIG 1/SP-1/F1+) were sold through Wells Fargo Securities LLC. The co-manager was J.P. Morgan Securities Inc.

The 2% bonds priced at 101.343.

Proceeds will refinance existing debt.

The authority, based in Kennesaw, is a natural gas utility.

Virginia Beach sells bonds

The City of Virginia Beach priced $60 million in series 2010A G.O. public improvement bonds, according to a pricing sheet.

The bonds (Aaa/AAA/AAA) were sold competitively with Wells Fargo winning the bid.

The offering included $27 million in series 2010A-1 bonds and $33 million in series 2010A-2 Build America Bonds.

The 2010A-1 bonds are due 2011 to 2019 with coupons from 3% to 5%. The 2010A-2 bonds are due 2020 to 2025 with a term bond due 2030. The serial coupons range from 4.15% to 4.65%, all priced at par. The 2030 bonds have a 5.2% coupon, priced at par.

Government Finance Associates Inc. was the financial adviser.

Proceeds will be used to fund a variety of capital improvements.

Cleveland school deal ahead

Looking to upcoming deals, the City School District of the City of Cleveland is set to price $113.44 million in series 2010 school improvement refunding bonds, said a preliminary official statement.

The bonds (Aa2/AA-/) will be sold on a negotiated basis with RBC Capital Markets Corp. as the lead manager.

The bonds are due 2013 to 2030.

Proceeds will be used to refund outstanding bond anticipation notes as well as refund the district's series 2002 bonds.

Louisiana plans sale

Also ahead, the State of Louisiana is expected to price $103.125 million in series 2010A gasoline and fuels tax second-lien revenue refunding bonds, said a preliminary official statement.

The bonds (/AA/) are due May 1, 2043 and will be sold through senior manager Morgan Keegan & Co. Inc.

Proceeds will be used to refund existing bonds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.