Municipal yields flat to firmer in another primary-heavy day; SSM Health sells $281.23 million

By Sheri Kasprzak

New York, April 21 - Municipals were seen flat to slightly firmer on Wednesday as insiders continued to focus on a primary market saturated with new issues, said market insiders.

"Everyone is still really looking at primary stuff, so it is taking a little bit of interest away from secondary," said one trader.

"Today was pretty good. The short to intermediate bonds were really unchanged overall. Out long, yields probably fell by 2 or 3 basis points."

Meanwhile, Wednesday's loaded primary calendar was led by a $281.225 million sale of health facilities revenue bonds from the Wisconsin Health and Education Facilities Authority and the Health and Educational Facilities Authority of the State of Missouri for SSM Health Care, said a pricing sheet.

The bonds (/AA-/AA-) were sold through Citigroup Global Markets Inc. and Goldman, Sachs & Co.

The sale included $124.71 million in series 2010A bonds from Wisconsin HEFA and $156.515 million in series 2010B bonds from HEFA of Missouri.

The 2010A bonds are due 2011 to 2013 and from 2018 to 2022 with term bonds due 2030 and 2034. The 2030 bonds have a split maturity. The coupons on the serials range from 2% to 5%. The 2030 bonds have a 4.75% coupon and a 5% coupon. The 2034 bonds have a 5.25% coupon.

The 2010B bonds are due 2018 to 2022 with term bonds due 2025, 2030 and 2034, each with a split maturity. The serial coupons range from 4% to 5%. The 2025 bonds have a 4.25% coupon and a 4.5% coupon, the 2030 bonds have a 4.75% coupon and a 5% coupon, and the 2034 bonds have a 4.75% coupon and a 5% coupon.

The proceeds will be used to finance and refinance capital projects and restructure existing debt.

The Wisconsin authority, based in Brookfield, and the Missouri authority, based in Chesterfield, provide financing to health-care and educational facilities.

Based in St. Louis, SSM Health Care operates and maintains hospitals in Missouri, Oklahoma, Illinois and Wisconsin.

Puerto Rico Electric Power prices

Elsewhere, the Puerto Rico Electric Power Authority sold $275 million in series ZZ power revenue refunding bonds, said a pricing sheet. The offering is part of a larger sale that includes $350 million in series YY power revenue bonds, the pricing date of which has not been announced.

The bonds (A3/BBB+/BBB+) were sold through Morgan Stanley & Co. Inc. and Citigroup.

The bonds are due 2011 to 2028 with coupons from 2% to 5.25%.

Proceeds will refund existing power revenue bonds.

Located in San Juan, the authority develops and utilizes water and power resources in the commonwealth.

Michigan State University sells

Also on Wednesday, the Board of Trustees of Michigan State University priced $205 million in series 2010 general revenue Build America Bonds, said a pricing sheet.

The bonds (Aa2/AA/) were brought to market by Bank of America Merrill Lynch and J.P. Morgan Securities Inc.

The 6.173% bonds are due Feb. 15, 2050 and were priced at par.

Proceeds will be used to construct, furnish and equip a replacement for Morrill Hall; renovate, remodel and equip Brody, Bailey and Emmons halls; and upgrade the university's power plant.

The university is based in East Lansing, Mich.

New York mortgage revenue bonds sold

In other news, the State of New York Mortgage Agency sold $80 million in 39th and 40th series non-AMT revenue bonds, said pricing sheets.

The sale included $57.385 million in 39th series non-AMT bonds and $22.615 million in 40th series non-AMT bonds.

The 39th series bonds are due 2010 to 2011 and 2018 to 2021 with term bonds due 2026 and 2028. Serial coupons range from 0.3% to 3.8%, all priced at par. The 2026 bonds have a 4.25% coupon, priced at par, and the 2028 bonds have a 5% coupon, also priced at par.

The 40th series bonds are due 2011 to 2017 with coupons from 0.7% to 3.125%.

Bank of America Merrill Lynch was the lead manager.

Proceeds will be used to fund mortgage loans.

Based in New York, the agency provides loans for single-family housing as well as home improvements.

Portland brings $72.31 million

The City of Portland in Maine priced Wednesday $72.31 million in series 2010 general airport revenue bonds, said a pricing sheet.

The bonds (A3/BBB+/) were sold through JPMorgan and Morgan Keegan & Co. Inc.

The bonds are due 2014 to 2030 with term bonds due 2035 and 2040. The coupons range from 4% to 5%. The 2035 bonds have a 5.25% coupon, priced at 101.891. The 2040 bonds have a 5% coupon, priced at 98.022.

Proceeds from the sale will be used to construct, expand, renovate and improve the city's Jetport terminal.

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