Munis seen firmer but mostly unchanged; Massachusetts brings upsized $956.45 million issue

By Sheri Kasprzak

New York, Dec. 1 - Municipals were seen unchanged again on Tuesday, but the tone of the market was firmer, one trader reported.

"There's a sense of firmness out there, especially out on the long end," the trader said.

"It's really been unchanged, I'd call it. Out at around 30 years, you might see it better by 1 or 2 basis points, but we're mostly flat."

Amid the light trading action, JEA of Florida's recently priced electric system revenue bonds were seen trading very actively. The 6.406% 2034 bonds were seen at 6.102%.

In other trades, American Municipal Power Inc. of Ohio's series 2009C revenue bonds were moving. The 6.453% 2034 bonds were seen at 5.916%.

Massachusetts sells $956.45 million

In primary action Tuesday, the Commonwealth of Massachusetts priced $956.45 million in series 2009E taxable Build America Bonds (Aa2/AA/AA), said a term sheet.

The sale included $200 million in 21-year bonds and $756.45 million in 30-year bonds.

The 21-year bonds have a 5.306% coupon, priced at par, and the 30-year bonds have a 5.456% coupon, also priced at par.

Goldman, Sachs & Co. was the lead manager.

Proceeds will be used to reimburse the commonwealth for a variety of capital expenditures.

Virginia College Building sale ahead

Looking to Wednesday's primary action, the Virginia College Building Authority is set to sell $398.025 million in series 2009 educational facilities revenue bonds.

The bonds will be sold competitively with First Southwest Co. as the financial adviser.

The deal includes $47.33 million in series 2009F1 bonds and $350.695 million in series 2009F2 bonds. The 2009F1 bonds are due 2011 to 2014, and the 2009F2 bonds are due 2015 to 2030.

Proceeds will be used to finance capital projects at higher education facilities.

Pennsylvania Housing bonds to price

Also on Wednesday, the Pennsylvania Housing Finance Agency plans to bring $250 million in series 2009-106 single family mortgage revenue bonds through RBC Capital Markets Inc. and Barclays Capital Inc.

The deal includes $14.645 million in series 2009-106A bonds, $85.355 million in series 2009-106B bonds and $150 million in series 2009-106C bonds.

Proceeds will fund the purchase of new mortgage loans.

Down South, the State of Tennessee is expected to price $290 million in series 2009 general obligation bonds through Barclays Capital.

The offering includes $235.955 million in series 2009C tax-exempt bonds and $54.045 million in series 2009D taxable G.O. bonds.

A retail order period was conducted on Tuesday for the tax-exempt bonds.

Proceeds will be used to fund capital expenditures.

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