Municipals close mostly unchanged; Los Angeles Community College District preps G.O. offering

By Sheri Kasprzak

New York, May 24 - Municipals were mostly unmoved to close out a tough week, market sources said.

"There's nothing going on, not enough to give us any particular direction," said a trader reached in the afternoon.

"I'd call it flat. There's some weakness in spots but only a touch. We're flat overall."

The week ahead will provide a slender calendar, with just $3 billion expected to come to market following the Memorial Day holiday.

Demand continues to be strong, according to Alan Schankel, managing director with Janney Montgomery Scott LLC.

"ICI reported $602 million of inflows to municipal mutual funds, the strongest week since mid-February," Schankel wrote Friday.

"Nevertheless, at $8.6 billion so far this year, inflows are well behind the $23.6 billion pace of the same period last year."

L.A. college deal set

The Los Angeles Community College District is set to price $307 million of series 2013 general obligation bonds (/AA/) competitively on Tuesday.

That deal includes $250 million of election of 2008 series F bonds and $57 million of series 2013 G.O. refunding bonds.

The district intends to use the proceeds to finance classroom, laboratory and equipment improvements and to refund existing bonds.

Maricopa college deal ahead

Another community college offering is set to hit the competitive market on Tuesday. The Maricopa County Community College District of Arizona will price $151.09 million of series 2013 G.O. bonds (Aaa/AAA/AAA).

RBC Capital Markets LLC is the financial adviser for the offering. The bonds are due 2014 to 2027, and proceeds from the deal will be used to make improvements to district facilities.

Massachusetts preps big sale

Out on the horizon, the Commonwealth of Massachusetts is gearing up to offer $1,115,260,000 of series 2013 G.O. bonds in three tranches.

The bonds (Aa1/AA+/AA+) will be sold through senior manager BofA Merrill Lynch.

Proceeds from the offering will be used to finance capital projects as part of the commonwealth's five-year plan and to refund existing G.O. debt.

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