Market quiets ahead of short week; Massachusetts Finance, Anaheim Public Financing plan deals

By Cristal Cody

Prospect News, April 20 - In the municipal bond market, two new deals were announced on Wednesday, ahead of the end of the short trading week.

The Massachusetts Development Finance Agency intends to sell variable-rate demand bonds, while Anaheim Public Financing Authority plans to offer revenue bonds, according to preliminary official statement.

Bond trading on Wednesday was quieter as stocks rallied, according to sources. The markets will close early Thursday for the Good Friday holiday and will be closed Friday.

"The tax-free municipal bond market remained firm as the new issue calendar continued to be much lighter than normal, leaving market participants with fewer opportunities to trade bonds," a municipal bond source said of the week so far.

Massachusetts Development to sell variable-rate bonds

The Massachusetts Development Finance Agency intends to sell $50 million in variable-rate demand revenue bonds for the Jewish Rehabilitation Centers for Living, according to a preliminary official statement.

The series 2011A and series 2011B bonds are due April 2, 2041. The bonds will bear a weekly interest rate.

Lancaster Pollard will manage the negotiated sale.

Proceeds will be used to construct a replacement skilled nursing facility in Peabody, Mass., and to refund bonds.

Anaheim Public Financing to sell revenue bonds

Anaheim Public Financing Authority announced plans to sell $91.935 million in series 2011A revenue bonds, according to a preliminary official statement

The bonds (A1/AA-/AA-) have serial maturities from 2016 through 2031 and a term due 2036.

J.P. Morgan Securities is the lead manager of the negotiated sale. The co-managers are Bank of America Merrill Lynch and De La Rosa & Co.

Proceeds will be used to finance the acquisition and construction of additional capital assets of the city's electric distribution system and to fund a debt service reserve fund.

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