Municipals end mostly unchanged; Louisiana brings $324.78 million G.O., G.O. refunding bonds

By Sheri Kasprzak

New York, Oct. 27 - Municipal yields ended the day mostly unchanged yet again Tuesday ahead of a big day for new offerings.

"There's not a lot of movement," said one trader reached during the afternoon.

"If anything, we're a touch weaker, maybe a basis point off on the long end, if that. There's some stuff [trading]."

In Tuesday's secondary market, the North Carolina Medical Commission's series 2009A revenue bonds sold for Duke University Health System were moving. The 4.75% 2030 bonds were seen at 4.7%.

Also, the Alabama Public School and College Authority's recently priced capital improvement bonds were seen in action. The 5.125% 2015 bonds were trading at 4.597%.

In the primary market, the State of Louisiana priced Tuesday $324.78 million in series 2009 general obligation bonds and G.O. refunding bonds, said a sellside source connected to the deal.

The sale included $200 million in series 2009A G.O. bonds and $124.78 million in series 2009B G.O. refunding bonds.

The bonds (A1/AA-/AA) were sold on a competitive basis with Government Finance Associates Inc. as the financial adviser. Barclays Capital Inc. won the 2009A bonds with a 3.95% true interest cost, and J.P. Morgan Securities Inc. won the 2009B bonds with a 1.5% TIC.

Proceeds will be used to refund the state's series 1998A bonds and fund capital projects.

Harris County Cultural Education bonds price

In other pricing news, the Harris County Cultural Education Facilities Finance Corp. of Texas sold Tuesday $164.5 million in series 2009 revenue refunding bonds, said a sellside source familiar with the deal.

The bonds (/AA-/) were sold on a negotiated basis with JPMorgan as the lead manager.

The bonds are due 2010 to 2020 with a term bond due 2025. The coupons range from 3% to 5.5%, and yields range from 1.7% to 5%.

Proceeds from the sale will be used to fund improvements and construction projects at educational facilities throughout the county.

The corporation is based in Houston.

Washington University issues $93.29 million

Also, the Health and Educational Facilities Authority of the State of Missouri Tuesday sold $93.285 million in series 2009A educational facilities revenue bonds for Washington University of St. Louis, said a sellside source familiar with the deal.

The bonds are due 2039 and priced with a 5% coupon to yield 4.25%.

JPMorgan and Morgan Stanley & Co. Inc. were the senior managers.

Proceeds will be used to fund the construction of a new engineering building at the university's Danforth campus, the construction of additional student housing and a portion of the costs of the BJC Institute of Health at the School of Medicine.

Georgia plans $700 million sale

Looking to upcoming sales, the State of Georgia plans to price $700 million in series 2009 G.O. bonds, said a preliminary official statement.

The sale includes $85.48 million in series 2009F bonds, $114.52 million in series 2009G bonds, $400 million in series 2009H Build America Bonds and $100 million in series 2009I G.O. refunding bonds.

The bonds will be sold through senior manager Goldman, Sachs & Co.

The 2009F bonds are due 2010 to 2014, and the 2009G bonds are due 2010 to 2029. The 2009H bonds are due 2010 to 2029, and the 2009I bonds are due 2010 to 2023.

Proceeds will be used to retire existing debt and fund capital projects.

Suffolk University sale ahead

In other upcoming deals, the Massachusetts Health and Educational Facilities Authority is expected to price $309.455 million in series 2009 revenue refunding bonds for Suffolk University, said a preliminary official statement.

The sale includes $287.83 million in series 2009A and $21.625 million in series 2009B federally taxable bonds.

The bonds (Baa2/BBB/) will be sold on a negotiated basis with Morgan Stanley and George K. Baum & Co. as the lead managers.

The maturities for the offering have not yet been set.

Proceeds will be used to refund existing debt issued by Suffolk University, which is located in Boston.

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