Munis finish week unchanged; Illinois State Toll Highway to bring $500 million revenue bonds

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, May 8 - Friday finished relatively unmoved, traders reported, despite a stronger municipals market late in the week.

"It's been a very quiet day," said one trader reached in the afternoon.

"Not a lot is moving, but what is is moving pretty flat."

Another trader agreed that the market was "very, very slow, [although] the market was firmer."

The few issues that priced over the week were fairly well received, and the pattern is likely to continue.

"It's a pretty manageable calendar," he said. "And that couple with the reinvestment money isn't producing a lot of sellers."

The Build America Bonds that priced during the week added a new flavor to the secondary, but "they still have a pretty wide audience," he said.

In the coming week, nothing on the radar screen looks as though it will cause any major ripples, he said.

"Steady as she goes, as Captain Kirk would say," he added.

Illinois toll highway bonds

Among those upcoming deals is a $500 million offering of series 2009 toll highway senior priority revenue bonds (Aa3/AA-/AA-) from the Illinois State Toll Highway Authority Monday, said a calendar of upcoming sales.

The bonds will be sold through lead managers Goldman, Sachs & Co. and Morgan Stanley & Co. Inc.

The sale includes 2009A bonds and 2009B bonds. The 2009A bonds are due 2034, and the 2009B bonds are due 2034 with serial bonds.

Proceeds will be used to make capital improvements.

Santa Clara sale

Also coming during the week, the County of Santa Clara in California will sell $350 million in series 2009A general obligation bonds on Wednesday, said a preliminary official statement.

The bonds (Aa2/AA+/) will be sold on a competitive basis with KNN Public Finance as the financial adviser.

The bonds are due 2010 to 2039.

Proceeds will be used to rebuild and install seismic improvements to the Santa Clara Valley Medical Center.

The county seat is San Jose, Calif.

On Tuesday, the Harris County Cultural Education Facilities Financing Authority in Houston plans to price $150 million in series 2009 revenue refunding bonds, said a calendar of upcoming deals.

The sale includes $100 million in series 2009A bonds and $50 million in series 2009B bonds.

The bonds (/AA/) will be sold through lead manager J.P. Morgan Securities Inc.

Proceeds will be used to refund the series 2006C and 2008C bonds.

Clearwater offers $111.54 million

Clearwater, Fla., announced plans to issue $111.535 million in revenue and refunding bonds on Wednesday (Aa2/AAA/AA, insured; A2/AA-/A, underlying), according to a forward-looking calendar.

The $68.675 million series 2009A water and sewer revenue bonds will include serial maturities from 2019 to 2028 as well as term bonds.

The $42.860 million series 2009B water and sewer revenue refunding bonds will carry serial maturities from 2009 to 2018.

Wachovia Bank NA will act as lead underwriter for the issue.

Proceeds from the sale will be used for capital improvements and the retiring of outstanding debt.

Boston College bonds

The Massachusetts Development Finance Agency is expected to sell $95.740 million in series 2009 revenue bonds for Boston College on Tuesday, said a calendar of upcoming sales.

The bonds (Aa3/AA-/) will be sold on a negotiated basis with Barclays Capital Inc. as the senior manager. The financial adviser is Public Financial Management Inc.

The sale includes $71.125 million in series 2009Q-1 bonds, which are due 2016 to 2029, and $24.615 million in series 2009Q-2 bonds, which are due 2010 to 2016.

Proceeds will be used to refinance existing debt.

The agency is based in Boston, and the college is based in Chestnut Hill, Mass.

Pennsylvania sale

In offerings a little farther out, the Commonwealth of Pennsylvania is scheduled on May 19 to price $616.860 million in series 2009 G.O. bonds, said a preliminary official statement.

The sale includes $464 million in second series bonds and $152.860 million in first refunding series bonds.

The bonds will be sold competitively with Public Financial Management as the financial adviser.

The second series bonds are due 2010 to 2029, and the first refunding bonds are due 2009 to 2014.

Proceeds will be used to fund capital improvements as well as protect open space, farmlands and watershed areas.

Secondary flat but firm

Moving to the secondary market, one trader said not a lot was moving.

Among the bonds that were in action Friday was Atlanta's recently priced series 2009 G.O. refunding bonds. The 4% 2014 bonds were seen at 2.73% after pricing at 2.93%. The 5.25% 2015s were seen at 3.14%. The bonds priced at 3.18%. The 5.25% 2023s were seen at 4.13% after pricing at 4.52%.

Elsewhere, the State of Georgia's series 2009 G.O. bonds were moving as well. The 5% 2029 bonds were trading at 4.25%. The bonds priced at 4.25%.

Mesa, Ariz.'s series 2009 utility system revenue bonds, which priced Thursday, were seen reoffered Friday. The 6.375% 2033 bonds were seen at 6%. The bonds priced at 6.3%.

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