Munis quiet on summer Friday, strong demand forecast for California's $10 billion RAN sale

By Cristal Cody

Tupelo, Miss., Aug. 10 - Municipals ended Friday quietly with little activity as the market highly anticipated a $10 billion offering of revenue anticipation notes from California in the week ahead, bond sources said.

California plans to price the 2012-2013 revenue anticipation notes on Thursday.

"They look forward to it every year," one source said. "If you're buying a CD, you're getting 0.1% or something. At least California, even though it's a crazy credit, is going to pay 0.4% or something like that, so it's good for our market."

California's deal will include series A1 notes due May 30, 2013 and series A2 notes due June 20, 2013.

The state intends to price the notes (MIG 1/SP-1+/F1) through a negotiated sale.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC and De La Rosa & Co. are the senior managers.

Proceeds will be used to assist in cash management for the state's fiscal 2012-2013 fiscal year.

San Francisco to sell G.O.s

Coming up on Tuesday, the City and County of San Francisco plan to bring $290,315,000 of general obligation bonds (Aa2/AA/AA-) through a competitive sale, according to a preliminary official statement.

The offering includes $251,925,000 of series 2012D bonds and $38,390,000 of series 2012E bonds.

Montague DeRose and Associates, LLC and Ross Financial are co-financial advisors.

Proceeds will be used to finance building and improve earthquake safety at the San Francisco General Hospital and Trauma Center and to improve fire, earthquake and emergency response.

Washington school offering

Also in the upcoming week, Renton School District No. 403 and King County, Washington intend to price $114.9 million of unlimited tax general obligation and refunding bonds, according to a preliminary official statement.

The series 2012 bonds (Aa2/AA-/) are due Dec. 1, 2012 through Dec. 2031.

The bonds will price through a competitive sale on Wednesday.

A. Dashen & Associates is the financial advisor.

Proceeds will be used to acquire, construct and install capital improvements to the district's education facilities and to refund outstanding bonds.

Inova plans $145 million sale

In other deals on the horizon, Industrial Development Authority of Fairfax County, Virginia plans to sell $145 million of health are revenue bonds for Inova Health System, according to a preliminary official statement.

The series 2012C bonds are due May 15, 2042.

Morgan Stanley will manage the negotiated sale.

Proceeds will be used to finance hospital projects and to redeem outstanding bonds.

Michigan to sell Detroit bonds

Michigan Finance Authority announced it expects to sell $122,995,000 of City of Detroit limited tax general obligation third lien local project bonds, according to a preliminary official statement.

The series 2012C local government loan program revenue bonds (A3/A+/) have serial maturities from 2014 through 2032.

Bank of America Merrill Lynch is the senior manager of the negotiated sale. Loop Capital Markets LLC is the co-manager.

Proceeds will be used to fund the city's risk management program and other municipal purposes.

New Castle County plans G.O.s

New Castle County, Delaware also plans to be in the market with an offering of $108,775,000 of series 2012 general obligation bonds, according to a preliminary official statement.

The offering includes $53,555,000 of series 2012A bonds, $47,470,000 of series 2012B bonds and $7,750,000 of series 2012C bonds.

The series 2012A bonds are due 2013 through 2042, the series 2012B bonds are due 2016 through 2026 and the series 2012C bonds are due 2013 through 2016.

Bank of America Merrill Lynch and Piper Jaffray & Co. will manage the negotiated sale.

Proceeds will be used to finance various capital projects and advance refund a portion of the county's series 2004 bonds and series 2006A bonds.

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