Munis round out busy session on firmer note; Sacramento Municipal Utility sells $325.55 million

By Sheri Kasprzak

New York, Sept. 15 - After a very active day for the primary market, municipals were seen firmer, with yields improved by 1 basis point to 6 bps across the yields curve, market insiders reported.

Thirty-year bonds were down by 6 bps, and five-year bonds were lower by 5 bps. The rest of the curve was better by about 1 bp to 2 bps, said one trader.

"There's been some good reception out there," he said.

"It looks like retail is ready to get back into the market. There's been a lot of retail coming in this week."

The day provided plenty of supply for the investors out there. The offerings were led by the Sacramento Municipal Utility District of California, which sold $325.55 million of series 2011X electric revenue refunding bonds.

The bonds (A1/A+/A+) were sold through J.P. Morgan Securities LLC and Barclays Capital Inc.

The bonds are due 2012 to 2028 with 1.5% to 5% coupons.

Proceeds will be used to refund the district's series 2001N, 2001O, 2001P, 2001Q, 2001R and 2001T revenue bonds.

Hawaii brings airport bonds

In other offerings, the State of Hawaii priced $301.17 million of series 2011 AMT airport system revenue refunding bonds, said a term sheet.

The bonds were sold through senior managers Bank of America Merrill Lynch and Piper Jaffray & Co.

The bonds are due 2012 to 2024 with 2% to 5% coupons.

Proceeds will be used to refund the state's series 2001 airport system revenue refunding bonds.

Prince George's bonds price

Elsewhere, Prince George's County of Maryland sold $280.965 million of series 2011 general obligation consolidated public improvement bonds, said a pricing sheet.

The bonds (Aaa/AAA/AAA) were sold competitively. The issuer did not return calls requesting the winning bidder by press time Thursday.

The sale included $98.59 million of series 2011A consolidated public improvement bonds and $182.375 million of series 2011B refunding bonds.

The 2011A bonds are due 2012 to 2031 with 3% to 5% coupons. The 2011B bonds are due 2012 to 2024 with 3% to 5% coupons.

Proceeds will be used to construct, reconstruct, establish, renovate, demolish, acquire and repair certain capital projects, including schools, roads, bridges, public buildings and communications systems. The rest will be used to refund the county's series 1999, 2000, 2001, 2002, 2003A and 2004 consolidated public improvement bonds.

Richland school sells debt

Also during the session, the Richland County School District No. 1 of South Carolina came to market with $191.435 million of series 2011 G.O. bonds, said a pricing sheet.

The offering included $186.435 million of series 2011A G.O. refunding bonds and $5 million of series 2011B G.O. bonds.

The 2011A bonds are due 2014 to 2029 with 4% to 5% coupons. The 2011B bonds are due March 1, 2012, have a 4% coupon and priced at 101.592.

The bonds (Aa1/Aa2/AA/AA-/) were sold competitively. Calls to the issuer for the winning bidder were not immediately returned.

Proceeds will be used to fund capital improvements and to refund the district's series 2003 G.O. bonds.

Orange sanitation deal wraps

In other competitive offerings, the Orange County Sanitation District of California priced Thursday $148.425 million of series 2011A wastewater refunding revenue obligations, said a pricing sheet.

The bonds (//AAA) were sold competitively with Bank of America Merrill Lynch winning the bid. The true interest cost came in at 2.61%, said Lorenzo Tyner, director of finance and administrative services for the district.

The bonds are due 2012 to 2017 and 2023 to 2026 with 3% to 5% coupons.

"Although most of our sales are competitive, we do consider market conditions and negotiated sales," Tyner said in an interview of the district's decision to sell its debt competitively.

Proceeds will be used to refund the district's outstanding series 2000 and 2003 certificates of obligation.

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