Municipals improve along with solid Treasuries; Miami-Dade County brings $382.65 million bonds

By Sheri Kasprzak

New York, Sept. 11 - Municipals were better on Wednesday, particularly around 10 years, in sympathy with rallying Treasuries, market sources reported.

Bids-wanted were seen strong in the 10-year portion of the curve, market sources said. Treasuries were improved, which helped reduce some of the selling pressure seen in the market thanks in part to a continued sell-off of Puerto Rico paper.

Treasuries posted gains on Wednesday, with the five-year note seen down 6.5 basis points and the 10-year note down 6 bps. The 30-year bond was down 5 bps.

Miami-Dade sells bonds

Heading up the day's primary activity, Miami-Dade County, Fla., hit the market with a four-tranche offering. The county sold $382.65 million of series 2013 seaport revenue bonds.

The deal included $244.14 million of series 2013A bonds, $109.22 million of series 2013B AMT bonds, $11,825,000 of series 2013C refunding bonds and $17,465,000 of series 2013D AMT refunding bonds.

The 2013A bonds are due 2017 to 2033 with term bonds due in 2038 and 2042. The serial coupons range from 4% to 5.75%, and the yields range from 1.74% to 5.44%. The 2038 bonds have a 6% coupon and priced at 104.519 to yield 5.41%, and the 2042 bonds have a 5.5% coupon and priced at 98.854 to yield 5.58%.

The 2013B bonds are due 2017 to 2033 with term bonds due in 2038 and 2042. The serial coupons range from 5% to 6% with 2.09% to 5.81% yields. The 2038 bonds have a 6.25% coupon and priced at 103.153 to yield 5.83%, and the 2042 bonds have a 6% coupon and priced at 100.371 to yield 5.95%.

The 2013C bonds are due 2014 to 2015 with 2% to 3% coupons and 0.42% to 0.77% yields.

The 2013D bonds are due 2014 to 2026 with 2% to 6% coupons and 0.55% to 5.11% yields.

The bonds (//A) were sold through Raymond James/Morgan Keegan.

Proceeds will be used to refund the county's series 1995 and 1996 revenue bonds.

Palm Beach school bonds price

Elsewhere during the session, the Palm Beach County School District of Florida priced $115 million of series 2013 tax anticipation notes, said a pricing sheet.

The notes (MIG 1) were sold competitively. BofA Merrill Lynch submitted the winning bid at a 0.122997% true interest cost, said Leanne Evans, treasurer for the school district Wednesday.

The notes are due Jan. 1, 2014, have a 4.5% coupon and priced at 101.507.

"The par of notes is $115 million, just as last year," Evans said in an interview.

"The life of the notes is 0.344 years, which is nearly identical to the note issued last year."

Proceeds will be used to provide interim funds for the district during the 2013-2014 fiscal year ahead of the collection of ad valorem taxes.

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