Yields end unchanged to slightly weaker; Dasny prices two issues; Arizona brings $449 million

By Sheri Kasprzak

New York, May 26 - Municipal yields were seen a touch off on Wednesday amid another busy day for primary deals, said market insiders.

One trader said yields were largely unchanged, but some weakness did creep into the market following a Treasury selloff.

"We're not seeing a huge difference, maybe 1 or 2 basis points, but the tone is definitely weaker than it has been the past few days," said the trader.

"I'm assuming it's the Treasury selloff today."

Dasny brings two

Meanwhile, billions in new offerings came to market Wednesday, led by a couple of large sales from the Dormitory Authority of the State New York.

Dasny sold $800 million in series 2010D state personal income tax revenue Build America Bonds competitively with Bank of America Merrill Lynch winning the bid.

The bonds (/AAA/AA) are due 2022 to 2024 with term bonds due 2030 and 2040. The serial coupons range from 4.75% to 5%. The 2030 bonds have a 5.5% coupon, priced at par. The 2040 bonds have a 5.6% coupon, priced at par.

Proceeds will be used to finance capital projects at the State University of New York.

The authority also brought $336.75 million in series 2010A revenue bonds for Mount Sinai Hospital Obligated Group, said a pricing sheet.

The bonds were sold through Goldman, Sachs & Co.

The bonds are due 2012 to 2023 with a term bond due 2026. The serial coupons range from 4% to 5%. The 2026 bonds have a 5% coupon. The yields were not available Wednesday afternoon.

Proceeds will be used to refund the obligated group's series 2000A and 2000C bonds.

The Albany-based authority provides financing to qualified nonprofit entities in the state. The university and hospital group are both based in New York.

N.Y. prices housing bonds

Meanwhile, the New York State Urban Development Corp. brought to market $503.41 million in series 2010A service contract revenue refunding bonds, according to a pricing sheet.

The sale included $223.615 million in series 2010A-1 bonds and $279.795 million in series 2010A-2 bonds.

The lead managers were Wells Fargo Securities LLC and Siebert Brandford Shank & Co. LLC.

The 2010A-1 bonds are due 2011 to 2022 with coupons from 3% to 5%. The 2010A-2 bonds are due 2011 to 2022 with 4% to 5% coupons.

Proceeds will be used to refund the corporation's series 2008 bonds.

The corporation, based in New York, provides affordable housing for low- to moderate-income families and individuals.

Arizona brings $449 million

Also on Wednesday, the State of Arizona priced $449 million in series 2010A lottery revenue bonds, said a term sheet.

The full details of the sale were not immediately available.

The bonds (A1/AA-/) were sold through J.P. Morgan Securities Inc.

The bonds are due 2013 to 2029 with coupons from 3% to 5%. The yields were not available by press time Wednesday afternoon.

Proceeds will be deposited into the state's general fund to pay appropriated expenditures.

California power bonds price

Elsewhere, the Southern California Public Power Authority priced $301.44 million in series 2010 Canyon Power Project revenue bonds, said a pricing sheet.

The sale included $110.46 million in series 2010A tax-exempt bonds and $190.98 million in series 2010B Build America Bonds.

The 2010A bonds are due 2016 to 2028 with 4% to 5.25% coupons. The 2010B bonds are due 2030 and 2040. The 2030 bonds have a 5.843% coupon, priced at par. The 2040 bonds have a 5.943% coupon, also priced at par.

The lead manager was Citigroup Global Markets Inc.

The authority plans to use the proceeds to finance the construction, development and acquisition of the Canyon Power Project and retire the authority's series 2009 notes.

Based in Pasadena, the authority is comprised of joint power agencies and finances the construction of new power plants and transmission lines.

St. Luke's Health prices

Also during the day, the Health and Educational Facilities Authority of the State of Missouri sold $100 million in series 2010A health facilities revenue bonds for Saint Luke's Health System, said a pricing sheet.

The bonds (A1/A+/) were sold through Morgan Stanley & Co. Inc.

The bonds are due 2010 to 2020 with term bonds due 2025, 2030 and 2040. The serial coupons range from 2% to 5%. The 2025 bonds have a split maturity and have a 4.75% coupon and a 5.25% coupon. The 2030 bonds have a 5% coupon, priced at 99.364. The 2040 bonds have a 5% coupon, priced at 97.254.

Proceeds from the sale will be used to construct, acquire, equip, renovate, rehabilitate and remodel Saint Luke's hospital facilities and refund existing debt.

The authority, based in Chesterfield, provides financing for health and educational capital projects throughout the state. The health system is based in Kansas City, Mo.

Scott & White bonds ahead

Looking to upcoming sales, the Tarrant County Cultural Education Facilities Finance Corp. of Texas is set to sell $350 million in series 2010 hospital revenue bonds for Scott & White Health Care, said a preliminary official statement.

The bonds (A1/A/AA-) will be sold on a negotiated basis with JPMorgan as the lead manager.

The bonds are due 2011 to 2025 with term bonds due 2030, 2035, 2040 and 2045.

Proceeds will be used to pay costs associated with constructing, acquiring and equipping Scott & White facilities, including an acute-care hospital in College Station, Texas, a children's hospital in Temple, Texas, and a hospital in Round Rock, Texas. The remainder will be used to refund existing debt.

The corporation, based in Fort Worth, provides funding for health-care and education projects within the county. Scott & White is based in Temple.

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