Municipals end the day firmer; Clark County Airport System sells $468.5 million revenue bonds

By Sheri Kasprzak

New York, Sept. 17 - The municipals market continued to benefit from some record-low yields on Thursday, ending the session firmer, market insiders reported.

"We're better by about 2, 3 basis points out on the long end," said one trader reached in the afternoon.

"I think we're still coasting on [Wednesday's] climb. There's definitely a buzz about munis now, and a lot of investors are looking to get in. Who knows how long it'll last, but I'll take it for now."

Secondary remained fairly quiet, said the trader.

"It's tougher in secondary," he said. "Primary is still really huge."

Among the light trading action, the Port Authority of New York and New Jersey's recently priced 160th series consolidated bonds were trading. The 4.25% 2034 bonds were seen at 4.128%.

The State of Utah's series 2009D Build America Bonds were seen trading actively on Thursday. The 4.554% 2024 bonds were seen at 4.368%. The bonds priced Wednesday at par.

Also trading Thursday were the Build America Bonds sold Wednesday by Central Puget Sound Regional Transit Authority. The 5.491% 2039s were seen at 5.386%. The bonds priced at par.

Elsewhere, Troy University of Alabama's series 2009 facilities revenue bonds were moving. The 4.5% 2028 bonds were seen at 4.317% after pricing Thursday at 4.55%.

Clark County flies airport bonds

Moving to another active day for new issues, the Clark County Airport System of Nevada sold $468.495 million in series 2009 airport system revenue bonds Thursday, said a pricing sheet.

The bonds were sold on a negotiated basis with Citigroup Global Markets Inc. as the lead manager.

The deal included $300 million in series 2009B taxable Build America Bonds and $168.495 million in series 2009C subordinate-lien revenue bonds.

The series 2009B bonds are due 2042 and have a 6.881% coupon, priced at par. In reoffering action, the 2042s were seen at 6.774%. The 2009C bonds are due 2022 to 2026 with 5% coupons for all maturities.

Proceeds will be used to fund airport improvements.

North Carolina agency powers deal

In other pricing news, the North Carolina Eastern Municipal Power Agency priced Thursday $401.615 million in series 2009 power system revenue and revenue refunding bonds, according to a term sheet.

The deal included $377.17 million in series 2009B refunding bonds and $24.445 million in series 2009C taxable revenue bonds.

The 2009B bonds are due 2011 to 2022 with a term bond due 2026. The serials have coupons from 3% to 5%. The 2009C bonds are due 2010 to 2015 and a term bond due 2023 with coupons from 3% to 4.68% for the serials. The 2023 bonds have a 6% coupon, priced at par.

Citigroup was the senior manager.

Proceeds will be used to refund existing debt and fund the termination of a swap agreement.

Miami-Dade prices $329.99 million

Also on Thursday, Miami-Dade County in Florida priced $329.985 million in series 2009 transit system sales surtax revenue bonds (A1/AA/A+), said a term sheet.

The offering included $77.855 million in series 2009A tax-exempt bonds and $252.13 million in series 2009B Build America Bonds.

The 2009A bonds are due 2012 to 2021 with 4% to 5% coupons. The 2009B bonds are due 2029 and 2039. The 2029 bonds have a 6.71% coupon, priced at par. The 2039 bonds have a 6.91% coupon, also priced at par.

Wells Fargo Securities Inc. was the senior manager.

Proceeds will be used to fund transportation improvements and public works projects.

Marta bonds travel

In other pricing action, the Metropolitan Atlanta Rapid Transit Authority in Georgia priced Thursday $250 million in series 2009A sales tax revenue bonds, said a term sheet.

The bonds (Aa3/AAA/) are due 2034, 2036 and 2039. The 2034 bonds have a 4.25% coupon, priced at 98.487, and the 2036 bonds have a 5.25% coupon, priced at 108.754. The 2039 bonds have a 5% coupon, priced at 105.775.

Merrill Lynch & Co. Inc. was the senior manager.

Proceeds will be used to fund transit system improvements.

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