Primary market still in control; TBTA deal gets 7.23% top yield.

The primary sector was still the controlling influence in the tax-exempt market yesterday as it logged another $1 billion plus day.

Yesterday's calendar featured a $399.6 million Triborough Bridge and Tunnel Authority revenue bond offering, which was priced into a tough market, but was well enough received to have yields shaved five to 10 basis points on some of the earlier serial maturities.

The heavy new-issue calendar continued to keep the pressure on bonds in the secondary market, where prices closed unchanged to 1/8 point lower in extremely light trading.

The big TBTA deal was marketed through an underwriting account led by Goldman, Sachs & Co., and carried a maximum yield of 7.229% for $127.8 million term bonds of 2020 priced at an original issue discount of 97 1/2 as 7s.

The offering also included $40.4 million term bonds, due 2022, offered at an original issue discount of 85 1/2 as 6s to yield 7.18%, $36.1 million term bonds of 2011 priced at an original issue discount of 98 1/2 as 7s to yield 7.144%, and serials scaled from 4.65% in 1992 out to 7.05% in 2007.

TBTA's general revenue bonds are rated Aa by Moody's Investors Service and A-plus by Standard & Poor's Corp.

Richard E. Kolman, vice president and manager of Goldman, Sachs' municipal underwriting and syndication department, said that there was a "fair amount of retail and trust department interest" in the issue. He noted that a number of the big institutions "stayed on the sidelines," but he expects them to participate in the secondary market.

Mr. Kolman pointed out that the account was able to "bump" the prices on many of the serial maturities and "hold the line" on the term maturities.

Proceeds from the $101.7 million series U and series V parts of yesterday's offering will be used to refund in advance outstanding bonds carrying interest rates ranging from 7 1/2% to 9.10%.

A $100 million Ohio highway bond full faith and credit issue topped the competitive slate and was awarded in close bidding to a Merrill Lynch & Co. group at a net interest cost of 5.8701%. A Kidder, Peabody & Co. account was only a little more than a basis point away with an NIC of 5.888%.

Reoffering yields ranged from 5.20% in 1993 to 5.95% in 1998 and an unsold balance of $30 million was reported. There was no formal reoffering for the $14.2 serial bonds maturing in 1992.

The Ohio issue is rated triple-A by Standard & Poor's and double-A by Moody's.

Returning to the negotiated arena, an account headed by PaineWebber Inc. marketed $239.6 million Pittsburgh Water and Sewer Authority, Pa., water and sewer system revenue refunding bonds.

Serial yields on the current interest serial bonds were scaled from 5.25% in 1993 to 6.70% in 2002. There were no formal reofferings of the $25.7 million 6 3/4% term bonds of 2010, the $63 million 6 1/2% term bonds of 2014, or the $38.5 million 6% term bonds of 2016.

Returns on the capital appreciation bonds ranged from 6.90% in 2003 to 7.20% in 2008.

The Pittsburgh issue will be backed by Financial Guaranty Insurance Co. and rated triple-A by Moody's and Standard & Poor's.

A $216.5 million offering of California Housing Finance Agency home mortgage revenue bonds reached the market through an underwriting account and selling group led by Merrill Lynch & Co. The offering was comprised of $155 million alternative minimum tax bonds and $61.5 million non-AMT bonds.

All of the current interest bonds were priced at par and both series are rated Aa by Moody's and A-plus by Standard & Poor's.

Serial yields on the AMT bonds were scaled from 5.95% in 1995 to 7.20% in 2006. The $10.7 million term bonds of 2011 will yield 7.35%, while the $92.4 million term bonds of 2031 will return 7.45%. There was no formal reoffering of the $31.7 million tender option bonds of 2025. The capital appreciation bonds will return 7.70% in 2023.

The non-AMT serials were scaled from 5.75% in 1995 to 7% in 2006 with the $7.5 million term bonds of 2011 yielding 7.10% and the $19.4 million term bonds of 2017 returning 7.25%. The $15.7 million super sinkers of 2017 were not formally reoffered.

In secondary dollar bond trading, New York LGAC 7s of 2016 were quoted near the close at 94 1/8-1/4 to yield 7.51%. Hawaii airport AMT 7s of 2020 were at 97 1/4-1/2 to yield 7.24%. And Metropolitan Seattle 6 7/8s of 2031 were at 94 7/8-95 1/8 to yield 7.25%.

On the older names, New Jersey Turnpike Authority 7.20s of 2018 closed at 101 1/2-102, where they returned 6.85% to the 1999 par call.

Prerefunded bonds came back late in the day and were quoted at 5.94% bid, 5.90% offered.

In the note market, the market for the recent New York State 5.40% tax and revenue anticipation notes was quoted at 5.12% bid, 5.10% offered in late trading, with Los Angeles County 5% TRANs at 4.57% bid, 4.55% offered.

Negotiated Pricings

Virginia Public School Authority, $90.9 million school financing bonds (1991 resolution).

Ratings: Moody's Aa; Standard & Poor's AAl Fitch AA.

The 21.4 million term bonds, due 2012, were offered at 94.875 as 6 1/2s to yield 6.968%. The serial bonds were priced to yield from 4.75% in 1992 to 6.925% in 2008.

Morgan Stanley & Co. is senior manager for the underwriters. The verbal award was received yesterday.

San Mateo County, Calif., $64.8 million certificates of participation (capital projects program) series 1991, for correctional and parking facilities.

Ratings: Moody's Aaa; S&P's AAA. MBIA insured.

The current interest portion of the offering was comprised of three term maturities: $6.5 million of 2008 priced at par to yield 75; $29.5 million of 2017 priced at 93.82 as 6 1/2s to yield 7.02%; and $19.4 million of 2021 offered at 87 7/8 as 6s to yield 6.969%.

Returns on the capital appreciation bonds ran from 6.25% in 1998 to 6.95% in 2005.

The bonds were marketed through an account led by PaineWebber Inc. The verbal award was received yesterday.

Delaware Economic Development Authority, $59 million various revenue bonds (Delmarva Power & Light Co. The offering is comprised of $39 million not subject to the alternative minimum tax and $20 million subject to the AMT.

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

All bonds were priced at par.

The non A?MT bonds will yield 7.15% in 2018 and 2021. The AMT bonds will yield 7.30% in 2021.

The issue is being negotiated by an account co-managed by Merrill Lynch & Co. and Morgan Stanley & Co. The formal award was received yesterday.

Alabama Housing Finance Authority, $55 million single-family mortgage revenue bonds (GNMA collateralized home mortgage revenue bond program) 1991 series B.

Ratings: Standard & Poor's AAA.

All bonds were priced at par.

The $32.8 million AMT issue will yield from 5.25% in 1993 to 6.60% in 2002, 7.30% in 2011, and 7.40% in 2022.

The non-AMT issue is comprised of super sinkers yielding 6.60% in 2016 and 7.15% in 2017.

The bonds were marketed through a Goldman, Sachs & Co. account. The verbal award was received yesterday; the formal award is expected tomorrow.

Connecticut Development Authority, $40.5 million life care facility revenue bonds (Seabury project - 1991 series).

Ratings: Moody's NR; Standard & Poor's NR.

All bonds have tentatively priced at par.

Yields run from 8.25% in 1995 to 9.40% in 2004 for the serials, 9.625% for the term bonds of 2011, and 9.75% for the term bonds of 2021.

Advest Inc. and M.R. Beal & Co. are joint managers.

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