Municipals little changed to firmer; University of Alabama prices $285.95 million revenue bonds

By Sheri Kasprzak

New York, Oct. 2 - Municipals were unchanged to firmer in spots as the week's new deals starting coming to market, said traders.

Secondary action picked up somewhat, said a trader reached in the afternoon. Tuesday marked the 12th consecutive session since Sept. 17 that the MMA 5% AAA benchmark in 10 years has improved, said a trader.

The week's largest deal got off to a good start, seeing some serious interest during the first retail period Monday, said Alan Schankel, managing director with Janney Montgomery Scott LLC. The Pennsylvania Economic Development Finance Authority conducted a second retail order period on Tuesday. It will offer up its $2,896,870,000 of unemployment compensation revenue bonds (Aaa/AA+/AA+) to institutional investors Wednesday.

The bonds will be sold in three tranches through Citigroup Global Markets Inc. and Bank of America Merrill Lynch, including variable-rate bonds.

The authority intends to use the proceeds to repay federal loans related to the commonwealth's unemployment compensation system.

University of Alabama prices

Heading up Tuesday's pricing action, the University of Alabama priced $285,945,000 of series 2012 general revenue bonds, said a pricing sheet.

The deal included $265,655,000 of series 2012A bonds and $20.29 million of series 2012B taxable bonds.

The 2012A bonds are due 2014 to 2034 with term bonds due in 2036, 2037 and 2042. The serial coupons range from 3% to 5%. The 2036 bonds have a 3.25% coupon and were not reoffered. The 2037 bonds have a 3.375% coupon and priced at 97.94. The 2042 bonds have a 3.5% coupon and priced at 98.992.

The 2012B bonds are due 2013 to 2019 with coupons from 1.4% to 3%.

The bonds (Aa2/AA-/) were sold competitively.

Proceeds will be used to finance capital improvements to the university and to refund its series 2001 and 2004A bonds.

Dallas offers G.O. bonds

In other primary action, the City of Dallas priced $214.74 million of series 2012 general obligation refunding bonds, said a pricing sheet.

The bonds (Aa1/AA+/) were sold through senior managers M.R. Beal & Co. Inc. and Bank of America Merrill Lynch.

The bonds are due 2013 to 2026 with 2% to 5% coupons.

Proceeds will be used to refund the city's series 2004, 2005 and 2006 G.O. bonds.

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