Municipals end the day flat; California brings $1.3 billion; Yale sells $1 billion 2.9% notes

By Sheri Kasprzak

New York, Nov. 4 - Municipals ended yet another session with very little movement Wednesday, market insiders reported, as two billion-dollar sales were announced.

"There's not a lot of movement out there," said one trader when asked about secondary market activity.

"Everyone is still very focused on primary stuff right now. It's a busy week for new issues, so that's not surprising. I don't think anyone on the desk is surprised that the whole week has been this way. We were sort of anticipating it."

Amid the light trading action, the State of California's recently priced economic development bonds were seen moving. The 4.25% 2017 bonds were trading at 4.002% Wednesday afternoon.

Elsewhere, the New York Municipal Water Finance Authority's series 2009AA-2 revenue bonds were moving as well. The 6.25% 2041s were seen at 5.773%.

California sells $1.3 billion

Meanwhile, California priced Wednesday $1.304 billion in series 2009 general obligation bonds, said Tom Dresslar, spokesman for the state treasurer's office.

The sale included $1.106 billion in new money bonds and $198.825 million in refunding bonds.

The bonds are due 2034, 2034, 2035, 2039 and 2039. The refunding bonds are all due in 2034.

The first 2034 bonds have a 5.5% coupon to yield 5.55%, the second 2034 bonds have a 6.25% coupon to yield 5.5%, and the 2035 bonds have a 6% coupon to yield 5.58%. The first 2039 bonds have a 5.5% coupon to yield 5.73%, and the second 2039 bonds have a 6% coupon to yield 5.63%.

E.J. De La Rosa & Co. was the senior manager for the sale.

Proceeds from the deal will be used to fund a variety of infrastructure projects throughout the state, including roads, schools, housing, flood protection, public libraries, neighborhood parks, clean water, clean air and coastal protection.

Yale University brings $1 billion

In other billion-dollar deals, Yale University of New Haven, Conn., priced $1 billion in 2.9% notes on Tuesday, said an official statement released Wednesday.

The notes (Aaa/AAA/) were sold on a negotiated basis with Barclays Capital Inc.; Goldman, Sachs & Co.; and J.P. Morgan Securities Inc. as the joint bookrunners.

The notes are due Oct. 15, 2014 and priced at 99.796.

Proceeds from the deal will be used to repay commercial paper and to fund capital expenditures.

Dasny's Hospital for Special Surgery bonds price

Elsewhere in primary market action, the Dormitory Authority of the State of New York priced Wednesday $85 million in series 2009 FHA-insured mortgage hospital revenue bonds for the Hospital for Special Surgery in New York City, said a pricing sheet.

The bonds are due 2012 to 2029 with term bonds due 2034 and 2038. The serials have coupons from 3.25% to 6%. The 2034 bonds have a 6.25% coupon, and the 2038 bonds have a 6% coupon. Neither of the term bonds will be reoffered.

Merrill Lynch & Co. was the senior manager.

Proceeds will be used to expand and renovate the hospital's East Wing and to fund a parking garage and a new mechanical rooftop.

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