Municipals quiet ahead of deals; Illinois, Pennsylvania set to sell general obligation bonds

By Cristal Cody

Tupelo, Miss., April 1 - Municipal bonds kept a better tone in sleepy trading after the long holiday weekend, sources said, with much of the market's focus on deals set for later in the week.

Pricing action on Monday was light. Albuquerque sold about $75 million of series 2013 general obligation bonds (Aa1/AAA/AA+), a market source said. The final pricing terms were not immediately available.

"The market has a slightly positive tone to it today," a trader said. "Activity has been far and few in between in the secondary market. Everyone is waiting for tomorrow for the Illinois pricing. That will certainly give the market some direction."

Illinois plans to sell $800 million of series of April 2013 G.O. bonds, which include $450 million series of April 2013A bonds due 2014 to 2038 and $350 million series of April 2013B bonds due 2014 to 2038, in a competitive sale on Tuesday.

Public Resources Advisory Group is the financial adviser.

Proceeds will be used to finance capital projects within the state.

Also ahead for the week, the Commonwealth of Pennsylvania plans to bring $950 million of G.O. bonds.

Pennsylvania plans G.O. bonds

Pennsylvania originally planned to sell its $950 million offering of G.O. bonds (Aa2//AA+) in a competitive sale on Tuesday but opted to price the bonds instead on Wednesday, according to notices of sale.

The first series of 2013 bonds have serial maturities from 2014 through 2033.

Public Financial Management Inc. is the financial adviser.

The proceeds will be used to construct, acquire and rehabilitate capital facilities projects and to make loans for water supply, storm water control and sewage treatment system projects, maintenance and protection of the environment, open space and farmland preservation, watershed preservation, abandoned mine reclamation, acid mine drainage remediation and other environmental initiatives.

New Jersey Health to price

Later in the month, the New Jersey Health Care Facilities Financing Authority plans to sell $219.12 million in two tranches of bonds for the Greystone Park Psychiatric Hospital project, according to a preliminary official statement.

The sale includes $46.12 million of series 2013A Department of Human Services lease revenue bonds due 2029 through 2033 and $173 million of series 2013B lease revenue refunding bonds with serial maturities from Sept. 15, 2013 through Sept. 15, 2028.

The bonds will price through a competitive sale on April 9.

Acacia Financial Group, Inc. is the financial adviser.

Proceeds will be used to refund and defease all of the authority's outstanding series 2003 bonds and 2005 bonds and to finance the completion of the demolition and remediation of the psychiatric facilities formerly used by Greystone Park Psychiatric Hospital.

The authority also plans to price $70.34 million of Department of Human Services lease revenue bonds for Marlboro Psychiatric Hospital in a competitive sale on April 9, according to a preliminary official statement.

The series 2013 bonds have serial maturities from 2014 through 2033.

Acacia Financial Group is the financial adviser.

The proceeds will be used to finance the demolition and remediation of the existing facilities at the Marlboro Psychiatric Hospital and to construct group housing.

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