Los Angeles MTA plans $320.94 million sale for Thursday; municipals round out the week firmer

By Sheri Kasprzak

New York, Oct. 2 - The municipal market remained mostly unchanged to end the week, but the tone of the market was firmer. The trend of the week seemed to be dropping yields on the long end, and Friday was no different, one trader said.

"The long end is some better. Yields are down by a couple of basis points," the trader said.

"The rest is unchanged."

Amid the trading action Friday, American Municipal Power Inc.'s recently priced series 2009C taxable revenue bonds were in motion. The bonds received a great deal of secondary market interest, the trader noted.

The 6.453% 2034 bonds were seen at 6.252%. The 6.553% 2039s were seen at 6.318%.

Meanwhile, the Port Authority of New York and New Jersey's 160th series consolidated bonds also saw some investor interest in secondary. The 4.25% 2034 bonds were seen trading Friday afternoon at 4.021%.

Cedars-Sinai bond sale planned

Moving to sales for the upcoming week, the California Health Facilities Financing Authority is set to sell $535 million in series 2009 revenue bonds for Los Angeles' Cedars-Sinai Medical Center on Tuesday, according to a sales calendar.

The bonds (A2//A+) will be sold through senior managers Merrill Lynch & Co. Inc. and Goldman, Sachs & Co.

The bonds are due 2010 to 2024 with term bonds due 2029, 2034 and 2039.

Proceeds will be used to construct, equip and renovate health facilities operated by Cedars-Sinai.

In other health-care offerings, the Wisconsin Health and Educational Facilities Authority plans to sell $186.955 million in series 2009C revenue bonds for the Froedtert & Community Health Inc. Obligated Group on Thursday, according to a sales calendar.

The bonds will be sold through senior managers Morgan Stanley & Co. Inc. and Ziegler Capital Markets Inc.

Proceeds will be used to refund the authority's series 2005D bonds as well as finance, refinance or reimburse costs related to capital projects.

Los Angeles MTA to drive bonds

Also coming up, the Los Angeles Metropolitan Transportation Authority plans to price its previously announced $320.94 million sale of series 2009A sales tax revenue refunding bonds on Thursday, said a sales calendar.

The bonds (Aa3/AAA/) will be sold through lead manager Merrill Lynch.

The bonds are due 2010 to 2026.

Proceeds will be used to refund debt and repay commercial notes.

Another transportation offering is also planned for Thursday, this one from the North Texas Tollway Authority. The authority plans to price $163.715 million in series 2009C system first-tier current interest revenue refunding bonds.

The bonds (A2/A-/) will be sold through lead manager Siebert Brandford Shank & Co. LLC. Proceeds will be used to refund the authority's series 2008E-1 and 2008G bonds.

Dasny plans $349.81 million sale

Looking out on the horizon, the Dormitory Authority of the State of New York plans to sell $349.805 million in series 2009 state personal income tax revenue bonds, said a preliminary official statement.

The sale includes $99.805 million in series 2009G bonds and $250 million in series 2009H Build America Bonds.

The bonds will be sold on a negotiated basis. Goldman Sachs is the senior manager for both tranches.

The 2009G bonds are due 2010 to 2022. The 2009H bonds are due 2039.

Proceeds will be used to fund capital projects and improvements for the City University of New York's community and senior college campuses.

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