A $330 million offering of Iowa tax and revenue anticipation notes drew a 5.10% yield in an already crowded note market yesterday, while tax-exempt bond prices finished the day unchanged to 1/8 point higher in quiet trading.

Notes have been flooding the market all through June and the big supply has kept upward pressure on rates, traders said. The Iowa offering was tentatively priced in the morning with a 5% return, but repriced in the afternoon to 100.262 as 5.40s to yield 5.10% to their June 30, 1992 maturity.

Goldman, Sachs & Co. was senior manager for the underwriting account. The notes are backed by an irrevocable direct pay letter of credit issued severally but not jointly by the Chicago branches of Fuji Bank Ltd., Industrial Bank of Japan Ltd., and Sumitomo Bank Ltd., and are rated MIG-1 by Moody's Investors Service and SP1-plus by Standard & Poor's Corp.

An official at Goldman, Sachs said that the 5.10% yield "got the deal done." The yield was sweetened to 5.10% from 5% because of "competing supply at cheaper levels," he added. Market participants said that there will be some notes still available from dealers this morning.

In the long-term market, underwriters led by Smith Barney, Harris Upham & Co. marketed $62.2 million New York State Medical Care Facilities Finance Agency hospital and nursing home insured mortgage revenue bonds. The offering drew enough demand to allow for a repricing to lower yields five to 7 1/2 basis points.

The final pricing included: $50.2 million term bonds, due 2031, yielding 7.45%; $8.3 million term bonds of 2011 at a 7.30% return; and $3.7 million term bonds of 2001 at a 6.70% return. All bonds were priced at par.

Underwriters expect ratings of Aa from Moody's and AA from Standard & Poor's.

Over in the competitive market, J.P. Morgan Securities Inc., bidding alone, won $51.3 million Georgia Power Company pollution control revenue bonds being issued by Bartow County Development Authority and Putnam County Development Authority.

The bonds were priced at par to yield 7.25% in 2021. They are rated BBB-plus by Standard & Poor's and Baal by Moody's.

A Bank of America account had the successful bid for $30.8 million Los Angeles County certificates of participation, rated A by Moody's and Standard & Poor's.

The certificates were priced to yield 5.7% in 1994, 6% in 1995, and 6.25% in 1996. The 1992 and 1993 maturities were not formally reoffered. There was a $15.7 million unsold balance.

An Alex Brown & Sons group reported a $5.8 million balance on a $16.5 million Laurel Md., unlimited tax public improvement and refunding bond issue.

The bonds were scaled from a 4.75% yield in 1992 to a 7% return for the 2009-11 maturities. The issue is backed by MBIA Corp. and rated triple-A by Moody's and Standard & Poor's.

Returning to the short-term market, Fleet/Norstar Securities Inc. and Chemical Securities Inc. marketed $20 million Oneida County, N.Y., revenue anticipation notes. The notes were pricted as 7s to yield 6.50% to the July 3, 1992 maturity.

In secondary dollar bond trading, New Jersey Turnpike Authority 7.20s, due 2018, were quoted late in the day at 101 5/8-7/8 to yield 6.88% to the 1999 par call. Florida State Board of Education 7 1/4S of 2023 closed at 101-101 1/4, where they returned 7.10% to their par call in 2004.

New York LGAC 7s of 2016 were quoted in late trading at 94 5/8-7/8 to yield 7.46%. Hawaii airport AMT 7s were at 97 3/8-3/4 to yield 7.19%. And South Carolina Public Service Authority 7.10s of 2021 were at 98 1/2-3/4 for a 7.20% return.

Prerefunded bonds were firm in light trading with yields down two to three basis points on the day. Issues prerefunded into 1995 were quoted near the close of trading at 5.95% bid, 5.92% offered.

Note prices were essentially unchanged in the secondary. The latest New York tax and revenue anticipation 5.40s were at 5.13% bid, 5.10% offered. The older December Trans were at 4.80% bid, 4.75% offered. And the market for Los Angeles County 5s was at 4.55% bid, 4.53% offered.

Negotiated Pricings

Glendale, Calif., $50 million insured hospital revenue refunding bonds (Adventist Health System/West) 1991 series. A.

Ratings: Moody's Aaa; Standard & Poor's AAA. MBIA insured.

Serial bonds were priced to yield from 4.50% in 1992 to 6.60% in 2002. There were no formal reoffering of the 6 1/2% term bonds of 2007, the 6 3/4% term bonds of 2013, or the 6% term bonds of 2014.

John Nuveen & Co. is senior manager for the underwriters. The official award is expected tomorrow.

Norfolk Industrial Development Authority, Va., $50 million hospital revenue bonds (Children's Hospital of the King's Daughters Obligated Group) series 1991.

Ratings: Moody's Aaa; Standard & Poor's AAA. AMBAC insured.

The $29.4 million term bonds, due 2021, were offered at 93 1/4 as 6 1/2S to yield 7.043%. The $8.6 million term bonds of 2011 were priced at 99 1/2 as 7s to yield 7.046%. And the serials were scaled from 5.75% in 1995 to 6.95% in 2006.

The bonds were marketed through an account co-managed by Smith Barney, Harris Upham & Co. and Sovran Investment Corp. The formal award is expected today.

Colorado Health Facilities Authority, $45.5 million hospital revenue bonds, series 1991 (Rosa Medical Center).

Ratings: Moody's Aaa; Standard & Poor's AAA. MBIA insured.

The preliminary pricing was comprised of $25.8 million term bonds of 2021 offered at 98.152 as 7s to yield 7.15%, $10 million term bonds of 2011 offered at 98.936 as 7s to yield 7.10%, and serials scaled from 4.75% in 1992 to 6.80% in 2004.

PaineWebber Inc. is senior manager. The formal award is expected today.

Charleston County, S.C., Charleston Public Facilities Corp., $36.4 million certificates of participation, series 1991.

Ratings: Moody's Aaa; Standard & Poor's AAA. MBIA insured.

The $21.6 million term certificates are being offered at a price of 98.92 as 7s to yield 7.10%. The serials have been tentatively priced at par to yield from 4.80% in 1992 to 6.60% in 2002.

The issue is being negotiated by a Merrill Lynch & Co. account. The written award is expected today

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.