Municipals seen firmer; Virginia College Building Authority sells $415.7 million revenue bonds

By Sheri Kasprzak

New York, Dec. 2 - Municipals firmed by about 1 to 2 basis points across the yield curve, one trader reported Wednesday.

"We're better by probably 1, maybe 2 basis points all over," said the trader. "Out on the long end, we have seen yields down by 3 or 4 basis points earlier today. It's spotty, but yields are down pretty much across the board."

Meanwhile, the Virginia College Building Authority priced Wednesday $415.7 million in upsized series 2009F educational facilities revenue bonds, said a term sheet.

The bonds were sold on a competitive basis with J.P. Morgan Securities Inc. as the winning bidder. The true interest cost came in at 5.08%.

The sale included $53.88 million in series 2009F1 bonds and $361.82 million in series 2009F2 bonds.

The 2009F1 bonds are due 2011 to 2014 with coupons from 4% to 5%. The 2009F2 bonds are due 2015 to 2030 with coupons from 3% to 5.75%.

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

Tennessee sells $290 million in G.O.s

In other primary action Wednesday, the State of Tennessee priced Wednesday $290 million in series 2009 general obligation bonds, said a term sheet.

The deal included $235.89 million in series 2009C tax-exempt bonds and $54.11 million in series 2009D taxable G.O. bonds.

The 2009C bonds are due 2011 to 2030 with coupons from 2.5% to 5%. The 2009D bonds are due 2013 to 2024 with a term bond due 2029. The serials have coupons from 1.865% to 4.941%, all priced at par. The 2029 bonds have a 5.589% coupon, also priced at par.

Barclays Capital Inc. was the lead manager.

Proceeds will be used to fund capital expenditures.

D.C. to bring $646 million

Looking out on the horizon, the District of Columbia plans to price $646.845 million in series 2009 income tax secured revenue bonds, said a preliminary official statement.

The deal includes $46.845 million in series 2009D tax-exempt bonds and $600 million in series 2009E Build America Bonds.

The bonds (Aa2/AAA/AA) will be sold on a negotiated basis with JPMorgan and Loop Capital Markets LLC as the senior managers.

The maturities have not been set.

Proceeds will be used to fund capital projects.

Also in the D.C. area, the Maryland Transportation Authority is expected to price $551.145 million in series 2009 transportation facilities projects revenue bonds (Aa3/AA-/AA-), said a preliminary official statement.

The deal includes $69.335 million in series 2009A tax-exempt bonds and $481.81 million in series 2009B Build America Bonds.

Goldman, Sachs & Co. and Merrill Lynch & Co. are the lead managers.

The 2009A bonds are due 2017 to 2022 and the 2009B bonds are due 2033 and 2043.

Proceeds will be used to fund a variety of transportation improvements.

Illinois sales planned

A few offerings coming up will come from the State of Illinois. The state is set to bring $375 million in series 2009B sales tax revenue bonds through Cabrera Capital Markets LLC.

Those bonds are due 2011 to 2034.

Proceeds will be used to fund capital projects.

The state is also scheduled to bring to market $154.92 million in series 2009A sales tax revenue bonds. Those bonds will be sold competitively with Acacia Financial Group Inc. as the financial adviser.

The bonds are due 2011 to 2034.

Proceeds from that sale will also fund capital projects.

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