Municipal yields seen up a touch; Denver prices $172.26 million airport system revenue bonds

By Sheri Kasprzak

New York, March 2 - Municipal yields were seen higher by a basis point or two on Tuesday in line with Treasuries, which were also weaker by a touch, market insiders reported.

"We might be off by a basis point or two in places," said one trader.

"We're following Treasuries, but the yield curve overall is basically unchanged. There are patches of weakness here and there."

Amid the light trading action Tuesday, the State of Oregon's series 2010A revenue refunding bonds sold for the Oregon Facilities Authority were seen moving. The 5.25% 2035 bonds were trading at 5.07% after pricing Monday at 5.375%.

The authority sold $122.055 million of the bonds with 2014 to 2025 serial maturities and term bonds due 2030, 2035 and 2040. Coupons ranged from 4% to 5.25%, and yields ranged from 2.42% to 5.35%. Piper Jaffray & Co. was the lead manager.

Denver prices airport bonds

In Tuesday's primary action, the City and County of Denver, Colo., sold $172.255 million in series 2010A airport system revenue bonds, said a pricing sheet.

The bonds (A1/A+/A+) were sold through lead manager Barclays Capital Inc.

The bonds are due 2016 to 2032 with 4% to 5% coupons.

Proceeds will be used to finance airport capital improvements.

San Antonio brings $156 million

Elsewhere, the City of San Antonio, Texas, sold $156.255 million in series 2010 general improvement refunding bonds Tuesday, said a pricing sheet.

The bonds (Aa1/AAA/AA+) were sold on a negotiated basis with Siebert Brandford Shank & Co. LLC as the senior manager.

The bonds are due 2011 to 2023 with 2% to 5% coupons.

Proceeds from the sale will be used to refund existing debt.

Illinois to price $356 million

Looking to upcoming sales, the State of Illinois plans to price $356 million in series 2010 taxable general obligation bonds on March 11, said a notice of sale.

The deal includes $300 million in series 2010-2 Build America Bonds and $56 million in series 2010 taxable G.O. bonds.

The bonds will be sold on a competitive basis with First Southwest Co. as the financial adviser.

Proceeds will be used to make grants to local school districts within the state as well as to construct, acquire and equip school facilities throughout the state.

University of North Carolina to price

In other upcoming deals, the University of North Carolina is set to sell $151.44 million in series 2010 system pool revenue bonds, said a preliminary official statement.

The deal includes $24.56 million in series 2010A pool bonds (Aa3/AA-/) for East Carolina University, $41.11 million in series 2010B-1 pool bonds (A1) for Appalachian State and University of North Carolina at Charlotte, $29.72 million in series 2010B-2 bonds (A1) for the University of North Carolina at Greensboro, $33.18 million in series 2010C bonds (Aa3/A2/AAA/) for the University of North Carolina at Asheville and at Wilmington and $22.87 million in series 2010D Build America Bonds (A2) for the University of North Carolina at Wilmington.

The bonds will be sold on a negotiated basis with Wells Fargo Securities Inc. as the senior manager. The 2010A bonds are due 2010 to 2029. The 2010B-1 bonds are due 2010 to 2030 with a term bond due 2035, and the 2010B-2 bonds are due 2011 to 2027. The 2010C bonds are due 2010 to 2025. The 2010D bonds are due 2030 and 2039.

Proceeds will be used to fund loans to the appropriate campuses for improvements.

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