Munis seen unchanged to slightly improved; Lower Colorado River Authority brings $426 million

By Sheri Kasprzak

New York, Jan. 12 - Municipal yields were mostly unchanged to slightly firmer on Tuesday amid decent trading activity, noted one trading source reached during the session. Primary activity also heated up, with a few larger sales pricing during the day.

"[There's some] spotty gains across the curve," reported one trader reached in the afternoon.

"We've had decent trading activity throughout the day. It's picked up since last week. I think the market is starting to get back to normal after the holidays."

During the trading day, the series 2009B bonds sold by St. Louis Park, Minn., for Park Nicollet Health Services were moving. The 5.25% 2030 bonds were trading at 1.898%.

Lower Colorado River Authority prices

In primary activity, the Lower Colorado River Authority of Austin, Texas, priced Tuesday $426 million in series 2010 refunding revenue bonds, said a sellside source familiar with the offering.

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

The bonds are due 2010 to 2020 with 3% to 5% coupons and yields from 1.17% to 4.01%.

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

"It's probably a little cheap, if you ask me," the sellsider told Prospect News. "But given its rating, I think it's not that bad."

Ohio Water brings $321.71 million

Also in primary action, the Ohio Water Development Authority sold Tuesday $321.705 million in series 2010A tax-exempt bonds, said a pricing sheet.

The bonds (Aaa/AAA/) were sold through lead manager Morgan Stanley & Co. Inc.

The bonds are due 2010 to 2030 with coupons from 1.25% to 5%.

Proceeds will be used to fund loans for pollution control projects throughout the state.

The authority is based in Columbus, Ohio.

Miami-Dade County to sell $600 million

In primary action set for Wednesday, Miami-Dade County in Florida is set to price $600 million in series 2010A aviation revenue bonds through Citigroup Global Markets Inc.

Proceeds from the offering will be used to reimburse the county for port improvements as well as to retire commercial paper and make a deposit to a debt reserve fund.

Harvard's $480 million sale planned

Coming up on Wednesday, Harvard University of Cambridge, Mass., is scheduled to bring to market $480 million in series 2010A revenue bonds (Aaa).

The bonds will be sold through Barclays.

Proceeds will be used to refinance previously issued debt and commercial paper.

Louisiana hospital sale ahead

Looking out on the horizon, the Louisiana Local Government Environmental Facilities and Community Development Authority plans to price $344.15 million in series 2010 hospital revenue bonds for the Woman's Hospital Foundation, said a preliminary official statement.

The sale includes $244.15 million in series 2010A bonds and $100 million in series 2010B gulf opportunity zone project revenue bonds.

The bonds (A3/BBB+/) will be sold on a negotiated basis with Bank of America Merrill Lynch as the senior manager.

The 2010A bonds are due 2018 to 2020 with term bonds due 2025, 2030, 2040 and 2044. The 2010B bonds are due 2018 to 2020 with term bonds due 2025, 2030, 2040 and 2044.

Proceeds will be used to fund the construction of a five-story replacement hospital for Woman's Hospital in Baton Rouge.

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