Municipals firm up by 6 bps; L.A. County MTA brings $732.415 million of revenue bonds

By Sheri Kasprzak

New York, Nov. 4 - Municipal yields improved by up to 6 basis points on Thursday as the market reacted to Federal Reserve news from Wednesday that it would buy up about $600 million of long-term debt.

"Yields in the middle are down by about 6 bps. Everything else is down by 3 bps to 4 bps," a trader reported Thursday afternoon.

Meanwhile, the Los Angeles County Metropolitan Transportation Authority priced on Thursday $732.415 million of series 2010 Measure R senior sales tax revenue bonds, said a pricing sheet.

The sale included $574.005 million of series 2010A taxable Build America Bonds and $158.41 million of series 2010B tax-exempt bonds.

The 2010A bonds are due 2021 to 2025 with a term bond due 2039. The serial coupons range from 4.28% to 5.13%, all priced at par. The 2039 bonds have a 5.735% coupon priced at par.

The 2010B bonds are due 2012 to 2020 with coupons from 0.5% to 5%.

Barclays Capital Inc., Citigroup Global Markets Inc. and Goldman, Sachs & Co. were the lead managers for the bonds (Aa2/AAA/).

Proceeds will be used to finance capital transportation projects under the authority's long-range plan.

Atlanta airport bonds price

Elsewhere, the City of Atlanta brought $590.245 million of series 2010 airport revenue bonds on Thursday, said a pricing sheet.

The sale included $176.61 million of series 2010A general revenue bonds and $413.635 million of series 2010B airport passenger facility charge and subordinate-lien general revenue bonds.

The bonds (A2/A+/A+) were sold through senior managers J.P. Morgan Securities LLC and Jackson Securities Inc.

The 2010A bonds are due 2014 to 2030 with term bonds due 2035 and 2040. Coupons range from 2% to 5%. The 2035 bonds have a split maturity with a 4.625%, 4.75% and a 5% coupon. The 2040 bonds have a split maturity with 5% coupons.

The 2010B bonds are due 2013 to 2026 with coupons from 2% to 5%.

Proceeds will be used to construct, acquire and equip the Maynard H. Jackson Jr. International Terminal at the Hartsfield-Jackson Atlanta International Airport.

Atlanta rec bonds price

In other Atlanta deals, the Atlanta and Fulton County Recreation Authority of Georgia sold $124.515 million of series 2010 taxable revenue refunding and improvement bonds through Goldman, Sachs & Co., said a pricing sheet.

The bonds (Aa3/AAA/) are due 2011 to 2012 with a term bond due 2028. The 2011 bonds have a 1.005% coupon priced at par, and the 2012 bonds have a 1.147% coupon, also priced at par. The 2028 bonds have a 6.5% coupon priced at par.

Proceeds will be used to fund improvements to the city's Philips Arena and other recreational and cultural facilities, as well as refund debt.

Northeast Ohio sewer bonds

In other news, the Northeast Ohio Regional Sewer District on Thursday sold $338.29 million of series 2010 wastewater improvement revenue bonds (Aa1/AA/) through Barclays Capital Inc. and Siebert Brandford Shank & Co. LLC, said a pricing sheet.

The bonds are due Nov. 15, 2032 and Nov. 15, 2040. The 2032 bonds have a 5.438% coupon priced at par, and the 2040 bonds have a 6.038% coupon, also priced at par.

Proceeds will be used to construct, acquire and equip wastewater facilities or water management facilities.

Illinois Finance bonds price

Also during the session, the Illinois Finance Authority priced $204.1 million of series 2010 revenue bonds for the Admiral at the Lake project, said pricing sheets.

The offering included $125.6 million of series 2010A bonds, $5.35 million of series 2010B bonds, $5 million of series 2010C accelerated redemption reset option securities, $12.15 million of series 2010D-1 tax-exempt mandatory paydown securities, $18.15 million of series 2010D-2 tax-exempt mandatory paydown securities, $35.35 million of series 2010D-3 tax-exempt mandatory paydown securities and $2.5 million of series 2010E taxable mandatory paydown securities.

The bonds were sold through Ziegler Capital Markets Inc.

The 2010A bonds are due 2020, 2025, 2030, 2040 and 2046. The 2020 bonds have a 7.25% coupon, the 2025 bonds have a 7.625% coupon, the 2030 bonds have a 7.75% coupon, the 2040 bonds have an 8% coupon and the 2046 bonds also have an 8% coupon, all priced at par.

The 2010B bonds are due May 15, 2020, and have a 7.375% coupon priced at par.

The 2010C bonds are due May 15, 2046, and have a 7.5% coupon priced at par.

The 2010D-1 bonds are due May 15, 2018, and have a 7% coupon priced at par.

The 2010D-2 bonds are due May 15, 2017, and have a 6.375% coupon priced at par.

The 2010D-3 bonds are due May 15, 2017, and have a 6% coupon priced at par.

The 2010E bonds are due May 15, 2016, and have a 7.125% coupon priced at par.

Proceeds will be used to acquire, construct and equip a new independent and assisted living facility for senior citizens at the site of the current Admiral at the Lake facility in Chicago.

Harvard deal ahead

Looking out on the horizon, the Massachusetts Development Finance Authority is expected to bring to market $740.97 million of series 2010B revenue bonds for Harvard University, said a preliminary official statement.

The sale includes $498.9 million of series 2010B-1 bonds, $181.265 million of series 2010B-2 bonds and $60.805 million of series 2010B-3 bonds.

The bonds (Aaa/AAA/) will be sold on a negotiated basis with Morgan Stanley & Co. Inc. as the senior manager.

The 2010B-1 bonds are due 2028 to 2030 with a 2040 term bond. The 2010B-2 bonds are due 2034, and the 2010B-3 bonds are due 2020 to 2024.

Proceeds will be used to refund the university's series FF, series BB and series L bonds.

The Boston-based authority provides financing to a variety of nonprofit and educational organizations throughout the state.

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