Muni yields improve; Maryland brings $595.32 million in state and local facilities G.O. bonds

By Sheri Kasprzak

New York, Feb. 24 - Municipal yields were again seen firmer on Wednesday, said traders, as primary activity continued to dominate the market.

"It's been pretty quiet on this side," said one trader.

"Everyone's looking at primary right now. Yields are probably down by 2, maybe 3 basis points."

Meanwhile, primary activity was led by the State of Maryland's sale of $595.315 million in series 2010 state and local facilities general obligation bonds, according to a pricing sheet. The deal was slightly downsized from its planned $600 million.

The deal included $400 million in series 2010A taxable bonds sold to Citigroup Global Markets Inc. and $195.315 million in series 2010B tax-exempt bonds sold to Jefferies & Co.

The 2010A bonds are due 2019 to 2025 with 4% to 4.6% coupons. The 2010B bonds are due 2018 to 2023 with 3% to 5% coupons.

Proceeds will be used for state and local loans on an as-needed basis and to refund existing bonds.

Energy Northwest prices

Also on Wednesday, Energy Northwest of Washington priced $470.69 million in series 2010 revenue refunding bonds, said a pricing sheet.

The full details of the offering were not immediately available.

Goldman, Sachs & Co.; Citigroup and J.P. Morgan Securities Inc. were the senior managers.

The offering included $68.35 million in series A project 1 bonds, $279.67 million in series 2010A project 3 bonds, $1 million in series 2010B project 1 bonds, $15.615 million in series 2010B Columbia Generating Station bonds, $29.93 million in series 2010B project 3 bonds and $76.125 million in series 2010C Columbia Generating Station bonds.

The 2010A project 1 bonds are due 2011 to 2017 with 2% to 5% coupons. The 2010A project 3 bonds are due 2016 to 2018 with 5% coupons. The 2010B project 1 bonds are due 2011 with a 2% coupon. The 2010B project 3 bonds are due 2016 with a 5% coupon. The 2010B Columbia bonds are due 2020 to 2024 with 3.75% to 4.25% coupons. The 2010C Columbia bonds are due 2020 to 2024 with 4.524% to 5.124% coupons, all priced at par.

Proceeds will be used to refund existing debt issued to construct several power generation stations.

Energy Northwest is based in Richland, Wash.

Dasny sells $252.84 million

In other pricing news, the Dormitory Authority of the State of New York sold Wednesday $252.835 million in series 2010A mental health services revenue bonds, said a term sheet.

The bonds (/AA-/A+) were sold through Ramirez & Co. Inc.

The bonds are due 2011 to 2025 with 1.5% to 5% coupons.

Proceeds will be used to refund existing debt.

Indianapolis bond bank prices

Also priced were $466.66 million in series 2010B bonds from the Indianapolis Local Public Improvement Bond Bank, said a pricing sheet.

The deal included $91.035 million in series 2010B-1 bonds and $375.625 million in series 2010B-2 Build America Bonds.

The bonds (Aa2/AA+/AA) were sold on a negotiated basis with Citigroup as the senior manager. The co-lead for the 2010B-2 bonds was JPMorgan.

The 2010B-1 bonds are due 2013 to 2023 with 1.1% to 3.65% yields. The series 2010B-2 bonds are due 2030 and 2040. The 2030 bonds have a 5.966% coupon, priced at par, and the 2040 bonds have a 6.116% coupon, also priced at par.

Proceeds will be used to construct a replacement hospital for Wishard Hospital.

Indianapolis sells $59.98 million

Also out of Indianapolis, the city sold $59.975 million in series 2010A gas utility distribution system senior lien revenue refunding bonds, said a pricing sheet.

The bonds (Aa3/AAA/) were sold through Morgan Stanley & Co. Inc. and City Securities Corp.

The bonds are due 2019 to 2024 with 4% to 5% coupons.

Proceeds will be used to refund the city's series 1998A bonds.

Pennsylvania housing bonds planned

Looking out on the horizon, the Pennsylvania Housing Finance Agency plans to sell $140 million in series 2010-108 single family mortgage revenue bonds, said a preliminary official statement.

The sale includes $9.225 million in series 2010-108A bonds and $130.775 million in series 2010-108B bonds.

Bank of America Merrill Lynch is the senior manager.

The 2010-108A bonds are due 2014 and 2015, and the 2010-108B bonds are due 2010 to 2021 with term bonds due 2025 and 2028.

Proceeds will be used to fund mortgage loans.

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