Municipals end largely unmoved in heavy primary action; Illinois sells $700 million G.O. bonds

By Sheri Kasprzak

New York, April 20 - Municipal yields were mostly unchanged on Tuesday amid a busy day for primary activity, a trader reported.

"Yields are basically flat," he said.

"We're seeing a decent amount of interest [in secondary], but a lot of folks are looking at primary."

Meanwhile, the State of Illinois came to market with $700 million in series 2010-3 general obligation Build America Bonds (A2/A+/A+), but the bonds went cheaply, said one sellsider.

"If you ask me, they really had to go cheap because the interest just wasn't there [from investors]," he said.

"They managed to get what they wanted, but I think it came a little cheap."

William Blair & Co. Inc. was the senior manager.

The bonds are due 2011 to 2022 with a term bond due 2035. The serial coupons range from 1.578% to 5.947%, all priced at par. The 2035 bonds have a 6.725% coupon, priced at par.

Proceeds will be used to fund provide grants to public schools within the state, fund transportation projects and finance other capital projects.

Connecticut prices

Another large offering Tuesday came out of the State of Connecticut, which sold $642.335 million in series 2010 G.O. bonds and G.O. bond anticipation notes, according to a pricing sheet.

The offering included $105 million in series 2010A G.O. tax-exempt bonds, $184.25 million in series 2010A G.O. Build America Bonds and $353.085 million in series 2010A G.O. bond anticipation notes.

The 2010A tax-exempt bonds are due 2015 to 2018 with 2.5% to 5% coupons. The 2010A Build America Bonds are due 2019 to 2026 with coupons from 4.407% to 5.257%, all priced at par. The BANs are due May 19, 2011, with a 2% coupon, priced at 101.634.

In reoffering news, the Build America Bonds were seen moving. The 5.257% 2026 bonds were seen in the afternoon at 5.243%.

M.R. Beal & Co. was the senior manager.

Proceeds will fund a variety of capital projects throughout the state.

Texas sells

Meanwhile, the State of Texas priced $185.44 million in series 2010 G.O. bonds, said a pricing sheet.

The bonds (Aa1/AA+/AAA) were sold through Barclays Capital Inc.

The offering included $143.745 million in series 2010B bonds and $41.695 million in series 2010C bonds.

The 2010B bonds are due 2011 to 2030 with 4% to 5% coupons. The 2010C bonds are due 2010 to 2030 with coupons from 2% to 5%.

Proceeds will be used to fund water development projects as well as refund existing debt.

DeKalb Medical bonds price

In other news, the DeKalb County Hospital Authority sold $183.105 million in series 2010 revenue anticipation certificates for DeKalb Medical Center, said a term sheet.

The certificates were sold through Raymond James & Associates Inc.

The certificates are due 2011 to 2015 with term certificates due 2020, 2030 and 2040. The serials have 3.5% to 4% coupons. The 2020 certificates have a 5.25% coupon, priced at 99.284. The 2030 certificates have a 6% coupon, priced at 98.948, and the 2040 certificates have a 6.125% coupon, priced at 98.298.

Proceeds will fund renovations to DeKalb Medical Center in Decatur, Ga.

The authority, based in Decatur, Ga., provides funding for hospitals in DeKalb County and the Atlanta metropolitan area.

Palos Community Hospital deal ahead

Looking to upcoming sales, the Illinois Finance Authority plans to bring to market $151.02 million in series 2010C revenue bonds for Palos Community Hospital, said a preliminary official statement.

The bonds (//AA-) will be sold through Goldman, Sachs & Co. and Cabrera Capital Markets LLC.

Proceeds will be used to construct, acquire and equip a new patient tower at Palos Community Hospital in Palos Heights, Ill., as well as renovate and expand existing facilities at the hospital.

The authority, based in Chicago, provides funding for a variety of organizations within the state.

Children's Hospital LA sale planned

Also on the horizon, the California Health Facilities Financing Authority plans to bring $135.04 million in series 2010A revenue bonds for Children's Hospital Los Angeles, said a preliminary official statement.

The bonds (Aa3/AAA/) will be sold through senior managers Citigroup Global Markets Inc. and Bank of America Merrill Lynch.

Proceeds will be used to refund the hospital's series 1999 certificates and its 2004 and 2008 bonds.

The authority, based in Sacramento, provides financing to construct, renovate and maintain hospitals and health-care facilities.

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