Municipals end mostly flat; Partners Health Care to sell $350 million in revenue bonds Tuesday

By Sheri Kasprzak

New York, Dec. 11 - Municipals ended out the week mostly unchanged, but a weaker tone was definitely felt, traders reported.

"I'll call it flat," said one trader reached during the afternoon.

"There is some weakness, especially on the short end. Yields might be up by a basis point or so at five years or so, but it's mostly unchanged."

Another trader agreed.

"That sounds about right," he noted.

"It's safe to say unchanged. If there is some weakness out there, it's slight."

This trader noted that trading volume was decent in secondary, with particular interest in the long end of the yield curve.

Amid the secondary activity, Anchorage saw interest in its recently priced series 2009B electric utility revenue bonds. The 6.558% 2039 Build America Bonds were seen at 6.203%.

Elsewhere, the Kentucky State Property and Buildings Authority's recently priced 6.573% 2029 bonds were seen trading at 5.9%.

Partners Health sale planned

Looking to the coming week, the Partners Health Care Systems Inc. of Massachusetts plans to sell $350 million in series 2009J health-care system revenue bonds on Tuesday, said a sales calendar.

The bonds (Aa2/AA/AA) will be sold through senior manager J.P. Morgan Securities Inc.

The bonds are due 2039.

Proceeds will be used to fund improvements to the health-care system, which is based in Boston.

Elsewhere, the Maryland Health and Higher Educational Facilities Authority plans to price $241.49 million in series 2010 University of Maryland Medical System revenue bonds Wednesday, said a preliminary official statement.

The bonds (A2/A/A) will be sold on a negotiated basis with JPMorgan and Merrill Lynch & Co. as the senior managers.

The bonds are due 2010 to 2019 with term bonds due 2024, 2029, 2034 and 2039.

Proceeds will be used fund additional facilities costs for the medical system.

St. Louis Park bonds to price

Also coming up, St. Louis Park, Minn., plans to price $191.66 million in series 2009 health-care facilities revenue refunding bonds on Tuesday, according to a sales calendar.

The bonds (/A/) will be sold on a negotiated basis with Morgan Stanley & Co. Inc. and Wells Fargo Securities Inc.

Proceeds will be used to refund the health system's series 2008A-B bonds as well as terminate a swap agreement connected to those bonds.

NY Muni Bond Bank sale ahead

During the coming week, the New York Municipal Bond Bank Agency plans to price its previously announced $182.29 million in series 2009 recovery act bonds, said a sales calendar.

The deal includes $50.4 million in series 2009A bonds, $33.169 million in series 2009B bonds and $105.721 million in series 2009C bonds.

The bonds will be sold through lead manager Jefferies & Co.

The 2009A-1 bonds are due 2010 to 2020, the 2009A-2 bonds are due 2013 to 2019 with a term bond due 2024, and the 2009A-3 bonds are due 2024 and 2029.

The 2009B-1 bonds are due 2010 to 2029 with a term bond due 2035, and the 2009B-2 bond are due 2029 and 2033. The 2009B-3 bonds are due 2035.

The 2009C-1 bonds are due 2011 to 2023, and the 2009C-2 bonds are due 2013 to 2019 with a term bond due 2028. The 2009C-3 bonds are due 2029.

Proceeds will be used to distribute funds to local municipalities for various uses.

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