Municipal yields improve by 2 to 3 bps; Missouri brings $105.66 million G.O. refunding bonds

By Sheri Kasprzak

New York, July 7 - Municipal yields were down, said one trader, with a firmer tone on Wednesday amid light trading and relatively light primary activity.

"It's still pretty light [in secondary]," the trader said.

"The tone is a little firmer, yields might be down 2 or 3 basis points, maybe slightly more on the longer end, but it's been a pretty good day."

Meanwhile, primary action remained fairly light, led by a downsized $105.66 million sale of series 2010 general obligation refunding bonds from the State of Missouri. The state had intended to bring $124.635 million.

The bonds (Aaa/AAA/AAA) were sold competitively with J.P. Morgan Securities Inc. winning the bid. The true interest cost came out to 2.29877%, said a pricing sheet.

The offering included $81.45 million in water pollution control refunding bonds, $15.15 million in storm water control refunding bonds and $9.06 million in building refunding bonds.

The bonds are due 2012 to 2022 with coupons from 4% to 5%.

Proceeds will be used to refund outstanding bonds.

Monroe bonds price

In another competitive sale, Monroe County in New York sold Wednesday $81.74 million in series 2010 public improvement G.O. bonds, said a pricing sheet.

The bonds (A3/BBB+/A-) were sold competitively with Citigroup Global Markets Inc. winning the bid.

The bonds are due 2011 to 2030 with coupons from 3% to 4.375%. The yields range from 0.75% to 4.4%.

The county intends to use the proceeds to replace and upgrade some bridges and highways; replace and enhance public safety communications equipment; reconstruct the county's civic center; improve parks, recreational facilities and structures; construct, furnish and equip a public safety laboratory; increase and improve water and sewer services; renovate the children's detention center; and improve automation systems at the county's public library system.

The county seat is Rochester.

Hawaii Pacific sells bonds

Elsewhere Wednesday, the Department of Budget and Finance of the State of Hawaii priced $61.86 million in series 2010B special purpose revenue bonds for the Hawaii Pacific Health Obligated Group, said a pricing sheet.

The bonds (A3/BBB+/) were sold on a negotiated basis with Morgan Stanley & Co. Inc. and JPMorgan as the underwriters.

The bonds are due 2014 to 2020 with term bonds due 2030 and 2040. Coupons range from 5% to 5.75%.

Proceeds will be used to finance the costs of constructing, improving and equipping Hawaii Pacific facilities.

Hawaii Pacific is based in Honolulu.

Maryland road sale set

Looking to upcoming sales, the Maryland Transportation Authority plans to price $299.175 million in series 2010 transportation facilities revenue bonds (Aa3/AA-/AA-), said a preliminary official statement.

The offering includes $12.015 million in series 2010A tax-exempt bonds and $287.16 million in series 2010B Build America Bonds.

The lead managers are Citigroup and Goldman, Sachs & Co.

The 2010A bonds are due 2015 to 2017, and the 2010B bonds are due 2017 to 2020 with term bonds due 2030 and 2041.

Proceeds will be used to construct, acquire, repair and expand a variety of projects, including the Potomac River Bridge, the Chesapeake Bay Bridge, the Baltimore Harbor Tunnel, the John F. Kennedy Memorial Highway, the Baltimore Harbor Outer Bridge, the Fort McHenry Tunnel and the Intercounty Connector.

Imperial water deal ahead

Also coming up, the Imperial Irrigation District of California is set to price $250 million in series 2010B Build America Bonds electric system revenue certificates of participation, said a preliminary official statement.

The COPs (A1/AA-/) will be sold on a negotiated basis with Citigroup and Goldman Sachs as the senior managers.

The COPs are due 2018 to 2040.

The district will use the proceeds to finance the El Centro Unit 3 Repower Project, which will provide an additional 100 megawatts of generation capacity to the El Centro Generating Station.

The district, based in Imperial, Calif., is a community-owned utility that provides electric power and irrigation services to the Imperial Valley.

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