The municipal market was largely unchanged with a firmer tone in light secondary market trading, as several of the week's largest new issues of Build America Bonds were priced in the primary market.In the new-issue market yesterday, Barclays Capital priced $1.3 billion of bonds, including just over $1 billion of direct-pay BABs, for the University of California. The bonds mature in 2031 and 2043, and yield 6.20%, or 4.03% after the 35% federal subsidy, and 5.70%, or 3.71% after the subsidy, both priced at par. The bonds were priced to yield 195 and 145 basis points over the comparable Treasury yield. The 2031 bonds are callable at par in 2019, with a make-whole call prior to 2019 at Treasuries plus 37.5 basis points. The 2043 bonds contain a make-whole call at Treasuries plus 25 basis points.

Barclays also priced $300 million of general revenue tax-exempt bonds for the university. The tax-exempt debt matures from 2012 through 2029, with term bonds in 2034 and 2040. Yields range from 1.22% with a 4% coupon in 2012 to 5.02% with a 5% coupon in 2040. The bonds, which are callable at 101 in 2017, declining to par in 2018, are rated Aa1 by Moody's Investors Service and AA by Standard & Poor's.

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