Muni yields seen firmer; Municipal Electric Authority of Georgia brings $1.14 billion in bonds

By Sheri Kasprzak

New York, March 3 - Municipal yields were seen firmer by 1 to 2 basis points, market insiders reported, as primary market activity heated up.

"We're not seeing a lot of [secondary] activity, but there are things out there," said one trader.

"It's been quiet. I'd say yields are down by maybe 1 or 2 basis points."

Meanwhile, leading the primary activity was a $1.141 billion sale of series 2010 Plant Vogtle project J bonds (A2/A+/A+) from the Municipal Electric Authority of Georgia.

The deal included $1.115 billion in series 2010A project J Build America Bonds and $26.57 million in series 2010B project J tax-exempt bonds.

The 2010A bonds are due 2057 and have a 6.637% coupon, priced at par. The 2010B bonds are due 2017 to 2019 with split term bonds due 2040. All of the 2010B bonds have 5% coupons, but the yields were not immediately available.

MEAG will also sell $953.24 million in series 2010A project M Build America Bonds, $19.68 million in series 2010B project M tax-exempt bonds, $410.88 million in series 2010A project P Build America Bonds and $8.245 million in series 2010B project P tax-exempt bonds. The pricing dates for these bonds have not yet been set.

Goldman, Sachs & Co. is the senior manager for all of the bonds.

Proceeds will be used to construct new Plant Vogtle electric generation facilities.

Dasny bonds price

Meanwhile, the Dormitory Authority of the State of New York priced $634.43 million in series 2010 state personal income tax revenue bonds (/AAA/AA-) through RBC Capital Markets Corp. and Loop Capital Markets LLC on Wednesday.

The pricing details were not immediately available.

The sale included $373.955 million in series 2010A tax-exempt bonds, $46.7 million in series 2010B federally taxable bonds and $213.775 million in series 2010C Build America Bonds.

Proceeds from the offering will be used to finance capital grants under the Heal NY Grant Program and various environmental and infrastructure projects throughout the state.

Pennsylvania Housing Finance prices

Elsewhere, the Pennsylvania Housing Finance Agency priced $140 million in series 2010-108 single family mortgage revenue bonds on Wednesday, said a pricing sheet.

The bonds were sold through senior manager Bank of America Merrill Lynch.

The 2010-108A bonds are due 2014 to 2015 with 1.875% to 2.35% coupons, all priced at par. The 2010-108B bonds are due 2010 to 2021 with term bonds due 2024, 2025 and 2028. Coupons range from 0.375% to 4.75%, all priced at par.

Proceeds will be used to fund mortgage loans.

California bonds to price

Looking out on the horizon, the State of California is set to price $2 billion in series 2010 various purpose general obligation bonds, said a preliminary official statement.

The bonds (Baa1/A-/BBB) will be sold through senior managers J.P. Morgan Securities Inc. and Morgan Stanley & Co. Inc.

Proceeds will be used to refund existing commercial paper and fund a variety of capital projects.

Ascension Health bonds ahead

Also coming up, the Ascension Health Group of Michigan is expected to bring to market $1.346 billion in series 2010 revenue bonds, said preliminary official statements.

The offering includes $670.53 million in series 2010 fixed-rate bonds and $675.39 million in series 2010 variable-rate bonds.

Both bonds will be sold through Morgan Stanley and Citigroup Global Markets Inc.

Proceeds will be used to reimburse the health group for a variety of improvements and repairs to Ascension facilities.

Detroit plans $250 million

In other upcoming deals, the City of Detroit plans to bring to market $250 million in series 2010 distributable state aid G.O. bonds, said a preliminary official statement.

The bonds (A1/AA-/) will be sold through lead manager Goldman Sachs.

Proceeds will be used to fund a portion of the city's accumulated and projected operating deficit.

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