Municipals end mostly firmer; Iowa Student Loan prices $231.86 million revenue bonds

By Sheri Kasprzak

New York, Nov. 17 - Municipals were firmer on Tuesday, with the short end of the yield curve making gains of 2 to 3 basis points. Even so, the long end was seen weaker by about a basis point, a trader reported.

"It's a little bit all over the place," she said.

"Looking like gains up until maybe the middle of the yield curve, and then it really starts to taper and drop."

In trading activity, the New York State Mortgage Agency's revenue bonds sold for New York Higher Education Finance were seen trading. The 4.125% 2017 bonds were changing hands at 3.879%.

In primary action Tuesday, the Iowa Student Loan Liquidity Corp. sold $231.86 million in series 2009 student loan revenue bonds, said a pricing sheet. The bonds were sold in three tranches.

The bonds (A1/A/) were sold through senior manager Merrill Lynch & Co.

The 2009-1 bonds are due 2010 to 2027 with a term bond due 2031 with coupons from 2.5% to 5.75%. The 2009-2 bonds are due 2023 to 2025 with coupons from 5.4% to 5.5%. The 2009-3 bonds are due from 2018 to 2019 with a term bond due 2024 and have coupons from 4.875% to 5.5%. The yields were not immediately available.

Proceeds will be used to fund student loans.

Boston University bonds price

In other primary activity, the Massachusetts Development Finance Agency sold Tuesday $117.4 million in series V revenue bonds (A2/A/) for Boston University, said a term sheet.

The sale was completed in three tranches. The agency sold $44 million in series V-1 bonds, $63.2 million in series V-2 bonds and $10.2 million in series V-3 bonds.

The V-1 bonds are due 2029 and have a 5% coupon, priced at par. The series V-2 bonds are due 2014 and have a 2.875% coupon, also priced at par. The series V-3 bonds are due 2014 and have a 2.875% coupon, priced at par.

J.P. Morgan Securities Inc. was the senior manager.

Proceeds will be used to refund existing debt issued by Boston University.

Texas sells $125 million

Also on Tuesday, the State of Texas priced Tuesday $125 million in series 2009 general obligation bonds (Aa1/AA-/AA-), said a sellside source connected to the deal.

The deal included $101 million in series 2009E bonds, which are due 2010 to 2029, and $24 million in series 2009F bonds, which are due 2010 to 2026.

The 2009E bonds have yields from 0.85% to 4.18%. The 2009F bonds have 0.85% to 4.15% yields.

Morgan Keegan & Co. Inc. was the lead manager. The co-managers were Citigroup Global Markets Inc., Fidelity Capital Markets Inc., Loop Capital Markets LLC, Southwest Securities Inc. and Ramirez & Co. Inc.

Proceeds will be used to fund water infrastructure improvements to local governments.

In other pricing news Tuesday, the Empire State Development Corp. had been scheduled to bring $1,501,245,000 in series 2009 New York State urban development state personal income tax revenue bonds, but the pricing terms were not immediately available. Goldman, Sachs & Co. was the senior manager.

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