Investors continued to respond well to new tax-exempt offerings yesterday with an issue of $641.6 million Washington general obligation bonds reported oversubscribed.
The bonds, marketed through a syndicate headed by Smith Barney, Harris Upham & Co., will carry yields ranging out to 6.80% in 2012.
An officer at Smith Barney said late yesterday that the deal was "oversubscribed top to bottom" and attracted buyers in "all investment categories." The offering was oversubscribed at the preliminary pricing and required no repricing.
In the meantime, prices in the municipal secondary market were flat, but firm in light dealer trading. Underwriters and investors just got finished polishing off another $3 billion calendar last week and have $4 billion staring them in the face this week.
Yields on the Washington serial bonds ran from 4.70% in 1992 to 6.25% in 2001, 6.70% in 2006, and 6.80% in 2009-2012.
The bonds are rated double-A by Moody's Investors Service and Fitch Investors Service and are expected to be rated double-A by Standard & Poor's Corp.
In another negotiated financing, an account led by PaineWebber Inc. marketed $111.9 million Central Arizona Water Conservation District contract revenue bonds, including $42 million backed by MBIA Corp.
The final pricing was comprised of uninsured bonds scaled from 5.40% in 1994 to 6.10% in 1998 and $45.5 million term bonds of 2011 offered at 95 7/8 as 6 1/2s to yield 6.88% and insured bonds yielding from 6.10% in 1999 to 6.50% in 2003 and insured capital appreciation bonds yielding from 6.65% in 2004 to 6.80% in 2006.
The uninsured bonds are rated AA-minus by Standard & Poor's and A1 by Moody's. The MBIA-backed bonds are rated triple-A by Moody's and Standard & Poor's.
In the light competitive sector, a Rauscher Pierce Refsnes Inc. account won $15.5 million Lubbock Independent School District, Tex., unlimited tax permanent school fund bonds and a smaller issue of $3 million unenhanced limited tax contractual obligations.
The larger loan was scaled from 5.20% in 1993 to 6.75% in 2009 and sold down to a $5.6 million balance. The PSF backing merited the bonds triple-A ratings from Moody's and Standard & Poor's.
The smaller loan will yield from 4.70% in 1992 to 6.10% in 1998. These onds are rated AA by Standard & Poor's and A1 by Moody's and were reported all sold.
Today's calendar features the competitive sale of $1.2 billion California GO bonds. Rated triple-A by Moody's and Standard & Poor's, underwriters estimated yesterday that returns for the issue will come in under 6 3/4% on the long maturities.
In secondary dollar bond trading, New Jersey Turnpike Authority 7.20s of 2018 closed yesterday at 103-103 1/4 to yield 6.63% to the 1999 par call and 6.79% to the premium call in 1993.
Colorado River Authority insured 6 5/8, due 2021, were locked late in the session at 96 3/8 where they returned 6.91%. And Triborough Bridge and Tunnel Authority 6s of 2019 were at 83 3/4-7/8 to yield 6.82%.
In prerefunded bond trading, issue with a 1995 call were quoted at 5.59% bid, 5.55% offered.
Essex County, N.J., $61.8 million fiscal year adjustment bonds, series 1991.
Ratings: Moody's Aaa; Standard & Poor's AAA. FSA insured.
The serial bonds were priced to yield from 4.70% in 1992 to 6.50% in 2004. The $30.9 million term bonds were offered at 98.329 as 6 1/2 to yield 6.65%.
The bonds were marketed through an account headed by A.G. Edwards & Sons. The formal award is expected today.
Reno, Nev., $31.9 million hospital revenue bonds (St. Mary's Regional Medical Center) series 1991 A.
Ratings: Moody's Aaa; Standard & Poor's AAA. MBIA insured.
The serial bonds have been tentatively priced to yield from 6.05% in 1996 to 6.60% in 2001. The $6.8 million term bonds of 2006 are being offered as 6 3/4 to yield 7%. And the $19.4 million term bonds, due 2021, are being offered at 95 3/4 as 6 3/4 to yield 7.093%.
Merrill Lynch & Co. and Cain Brothers Shattuck & Co. are co-managers for the underwriters. The official award is expected today.
Miami Health Facilities Authority, Fla., $28.6 million health facilities revenue bonds (Mercy Hospital project) series 1991.
Ratings: Moody's Aaa; Standard & Poor's AAA. AMBAC insured.
The offering is expected to include $14 million term bonds of 2021 priced at 98.433 as 6 7/8s to yield 7%, $4.9 million term bonds of 2011 priced at 97.852 as 6 3/4s to yield 6.95%, and serial bonds offered at par and scaled from 5% in 1992 to 6.90% in 2005.
Smith Barney, Harris Upham & Co. is senior manager for the underwriters.