Munis end mostly unchanged ahead of comparatively quiet week; Maryland preps $803 million sale

By Sheri Kasprzak

New York, Oct. 19 - Municipals rounded out Monday mostly unchanged but with a slightly weaker tone, a trader reported. Meanwhile, the coming week will provide a modest number of offerings.

"We're not moving by much, but the tone is a little off," said one trader reached in the afternoon.

"Some stuff is trading, but it's pretty much a typical Monday. Not much movement."

Amid the light trading action, the State of Washington's series 2010B motor vehicle tax general obligation bonds were seen moving. The 5% 2025 bonds were seen at 3.924%. The 5% 2030s were trading at 4.508%.

Looking to the coming week, billions in sales are expected for Wednesday, but the remainder of the week remains quiet compared to recent, active weeks.

Maryland's $803 million deal ahead

Coming up on Wednesday, the State of Maryland is expected to bring to market $803.37 million in series 2009 state and local facilities loan G.O. bonds (Aaa/AAA/AAA) on a competitive basis.

The sale includes $141.8 million in series 2009A bonds, $58.2 million in series 2009B bonds and $603.37 million in series 2009C refunding bonds. The 2009B bonds may be sold as either tax-exempt bonds or Build America Bonds.

Proceeds will be used to fund state and local facilities, to make capital grants for local governments for public schools, community colleges and jails and to refund existing debt.

Another major deal expected for Wednesday comes from the State Public Works Board of California, which will come to market with $820 million in series 2009 lease revenue bonds through Morgan Stanley & Co. and RBC Capital Markets Inc.

Proceeds from that sale will fund capital projects and improvements to the state's prisons and rehabilitation facilities.

Alabama Public School bonds to price

Also coming up on Wednesday, the Alabama Public School and College Authority is gearing up to offer $775.79 million in series 2009 capital improvement bonds through Morgan Stanley.

The sale includes 2009A, 2009B and 2009C bonds, and proceeds from the sale will refund the authority's series 2001A and 2002A bonds as well as fund capital improvements to colleges and public schools.

Elsewhere, the County of Cook in Illinois is set to sell $400 million in series 2009 G.O. and G.O. refunding bonds through Loop Capital Markets LLC and Ramirez & Co. Inc.

Those bonds will be sold in three tranches: $300 million in series 2009C G.O. refunding bonds, $95 million in series 2009D G.O. capital equipment bonds and $5 million in series 2009E taxable G.O. bonds.

Chicago is the Cook County seat.

Henry Ford Health plans offering

In other upcoming sales for Wednesday, the Michigan State Hospital Finance Authority is planning to sell $320 million in series 2009 hospital revenue and refunding bonds for the Henry Ford Health System. The senior manager is Citigroup Global Markets Inc.

The bonds are due 2010 to 2020 with term bonds.

Proceeds will be used to construct and equip a hospital facility in West Bloomfield, Mich., as well as construct, expand and renovate the health system's main campus in Detroit.

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