Municipal yields weaken as billions hit primary market; Clark County, Nev., sells $578 million

By Sheri Kasprzak

New York, Feb. 9 - Municipals were seen slightly weaker on Tuesday with billions in new money sold in the primary market, insiders said.

"We're probably 2, 3 basis points weaker," said one trader reached Tuesday.

"Closer in, maybe 1 basis point off."

Meanwhile, Clark County in Nevada brought to market $578 million in series 2010 airport system revenue bonds, said term sheets.

The bonds (Aa2/AA-/) were sold through Citigroup Global Markets Inc. and Siebert Brandford Shank & Co. LLC.

The sale included $453 million in series 2010C Build America Bonds, which were priced through Citi, and $125 million in series 2010D tax-exempt bonds, which were priced through Siebert.

The tax-exempt bonds are due 2015 to 2024 with 3% to 5% coupons and yields from 2.5% to 4.37%.

The pricing details for the Build America Bonds, which are due 2045, were not immediately available.

Proceeds will be used to fund capital improvements to the county's airport system.

The county seat is Las Vegas.

Yale sells $530.3 million

In other primary news, the Connecticut Health and Educational Facilities Authority sold $530.3 million in series 2010A revenue bonds for Yale University Tuesday, said a sellside source close to the deal.

"We feel it went well," said the sellsider.

"It's right in line with our expectations."

The bonds (Aaa/AAA/) were sold through lead managers Barclays Capital Inc. and J.P. Morgan Securities Inc.

The sale included $80.3 million in series 2010A-1 bonds, $150 million in series 2010A-2 bonds, $150 million in series 2010A-3 bonds and $150 million in series 2010A-4 bonds.

The 2010A-1 bonds are due 2025 with a 5% coupon to yield 3.39%, and the 2010A-2 bonds are due 2040 with a 5% coupon to yield 4.24%. The 2010A-3 bonds are due 2049 with a split maturity and coupons of 2% and 4% to yield 1.1%. The 2010A-4 bonds also have a split maturity in 2049 with 2.5% and 5% coupons to yield 1.79%.

Proceeds will be used to fund the construction, renovation, equipment and repair of Yale buildings.

The university is located in New Haven, Conn.

University of Michigan prices

Elsewhere, the Regents of the University of Michigan priced Tuesday $184.225 million in series 2010C general revenue bonds, said a term sheet.

The bonds (Aaa/AAA/) were sold competitively with Bank of America Merrill Lynch as the winning bidder.

The bonds are due 2011 to 2027 with coupons from 2% to 5%.

Proceeds will be used to fund general expenses and refund existing debt.

The University of Michigan is based in Ann Arbor, Mich.

Anchorage prices $120 million

In other competitive offerings, the City of Anchorage in Alaska priced $120 million in series 2010 general obligation tax anticipation notes Tuesday, said a term sheet.

The bonds (/SP-1+/) were sold competitively with Morgan Stanley & Co. Inc. winning the bid.

The 1% bonds are due Dec. 29, 2010 and were priced to yield 0.24%.

Proceeds will be used to fund capital expenditures ahead of the collection of certain taxes.

Texas to bring $125 million

Out on the horizon, the State of Texas is expected to price $125 million in series 2010 G.O. college student loan bonds, said a preliminary official statement.

The bonds (Aa1/AA+/) will be sold on a negotiated basis with Wells Fargo Securities Inc. as the senior manager.

Proceeds will be used to fund student loan programs throughout the state.

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