Municipals end the week unchanged; Georgia readies $700 million sale of G.O. bonds for Tuesday

By Sheri Kasprzak

New York, Oct. 30 - Municipals rounded out the week mostly unmoved Friday with a healthy supply of new issues expected for the coming week.

"The tone is a little better today," reported one trader reached in the afternoon.

"Yields are flat pretty much across the curve, and it feels a little stronger in general. Volume is about what you'd expect for a Friday afternoon. Everyone is out early because of Halloween. I'm leaving early myself, so it's really quiet. It has a holiday feeling to it."

Coming up on Tuesday, the State of Georgia plans to bring $700 million in series 2009 general obligation bonds through Goldman, Sachs & Co.

"I think it's going to go very well," said one sellsider asked about the offering Friday afternoon.

"It's a strong issuer, good rating. I think they'll get good reception."

The state plans to sell the bonds in four tranches: an $85.48 million tranche of series 2009F bonds, a $114.52 million tranche of series 2009G bonds, a $400 million tranche of series 2009H Build America Bonds and a $100 million tranche of series 2009I G.O. refunding bonds.

Proceeds will retire debt and fund capital projects.

Amid the secondary action, California's economic recovery bonds priced Thursday were moving. The 5% 2017 bonds were seen at 4.17%. The 5% 2022s were seen at 4.85%, and the 4% 2016s were trading at 3.93%.

Suffolk University sale planned

Also coming up, the Massachusetts Health and Educational Facilities Authority plans to price $309.455 million in series 2009 revenue refunding bonds for Suffolk University on Wednesday, said a sales calendar.

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

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

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

Honolulu says 'aloha' to bonds

Coming up on Tuesday, the City of Honolulu plans to sell $234.645 million in series 2009 G.O. bonds, said a calendar of upcoming deals.

The sale includes $140.285 million in series 2009D G.O. bonds, $50.46 million in series 2009E Build America Bonds and $43.9 million in series 2009F G.O. bonds.

The bonds (//AA) will be sold through lead managers Merrill Lynch & Co. and Piper Jaffray & Co.

The 2009D bonds and 2009E bonds are due 2014 to 2034. The 2009F bonds are due 2014 to 2020.

Proceeds will be used to refund the city's series 1993 and 1997 bonds as well as fund the expansion of the city's waste-to-energy facility.

Central DuPage bonds ahead

Moving inland, the Illinois Finance Authority plans to price $240 million in series 2009B revenue bonds on Tuesday, according to a calendar of upcoming sales. The sale is being conducted for Central DuPage Health of Winfield, Ill.

The bonds will be sold through lead managers Morgan Stanley and Wells Fargo Securities Inc.

Proceeds will be used to reimburse the health system for the construction, improvement, equipment and acquisition of its facilities as well as refund the system's series 2000B, 2000C, 2004A, 2004B and 2004C bonds.

Minneapolis plans Allina Health sale

In other upcoming health bonds, the City of Minneapolis and the Housing and Redevelopment Authority of the City of St. Paul plan to price $229.78 million in series 2009A health care system revenue bonds for Allina Health System on Tuesday, according to a calendar of sales.

The bonds (A1/A+/A+) will be sold on a negotiated basis with Goldman Sachs as the lead manager.

The sale includes $114.08 million in series 2009A-1 bonds and $115.695 million in series 2009A-2 bonds.

Proceeds will be used to construct, equip, acquire and renovate facilities operated by Minneapolis-based Allina Health as well as to refund existing debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.