Munis seen unchanged to weaker; East Bay MUD brings $400 million in water system revenue bonds

By Sheri Kasprzak

New York, Feb. 11 - Municipal yields were mostly unchanged to slightly weaker on Thursday in a light session of trading, market insiders reported.

"Not a lot to report," said one trader in the afternoon.

"Mostly unchanged, maybe a little weaker in spots. It's been a pretty quiet day."

The State of Hawaii's recently priced series DY refunding bonds were among Thursday's light trading action. The 3% 2016 bonds were trading at 2.08%. The state's series DX Build America Bonds were also moving. The 5.43% 2027s were trading at 5.197%

On the primary side of the market, the East Bay Municipal Utility District of California brought $400 million in series 2010 water system revenue bonds on Thursday, said a term sheet.

The bonds are due 2040 with a 5.874% coupon, priced at par.

Morgan Stanley & Co. Inc. was the senior manager.

Proceeds will be used to fund improvements to the district's water system.

The utility district is based in Oakland, Calif.

American Baptist prices

In other primary activity, the California Statewide Communities Development Authority priced Thursday $106.58 million in series 2010 revenue bonds for American Baptist Homes of the West, according to a term sheet.

The bonds (/BBB-/BBB+) were priced through senior manager Ziegler Capital Markets Inc.

The bonds are due 2015, 2020, 2025, 2029 and 2039 with 4.25% to 6.25% coupons.

Proceeds will be used to fund the construction, expansion, renovation, acquisition and equipment of facilities operated by American Baptist Homes of the West, which is based in Pleasanton, Calif.

Mission Health bonds price

Elsewhere, the North Carolina Medical Commission sold $65 million in series 2010 health system revenue bonds, said a term sheet. The bonds were sold for Mission Health Inc.

The bonds (Aa3/AA/AA) were sold through senior manager Bank of America Merrill Lynch.

The bonds are due 2010 to 2025 with term bonds due 2030 and 2035.

Proceeds will be used to fund the construction of an outpatient cancer center as well as the renovation of other Mission Health buildings.

Mission Health is based in Asheville, N.C.

Westminster Manor sells $64.62 million

The Travis County Health Facilities Development Corp. of Texas sold $64.62 million in series 2010 revenue bonds for Westminster Manor, said a term sheet.

The bonds (//BB+) were sold through Cain Brothers.

The bonds are due 2016, 2030 and 2040. The 2016 bonds have a 6.25% coupon, priced at par, the 2030 bonds have a 7% coupon, priced at par, and the 2040 bonds have a 7.125% coupon, also priced at par.

Proceeds will be used to fund the construction, acquisition, expansion and equipment of Westminster Manor, an assisted-living facility in Austin, Texas.

Connecticut housing bonds ahead

Out on the horizon, the Connecticut Housing Finance Authority is expected to sell $275 million in series 2010 housing mortgage finance program bonds, said a preliminary official statement.

The deal includes $273.535 million in series 2010A bonds and $1.465 million in series 2010B bonds.

The 2010A bonds include $15.42 million in series 2010A-1 bonds, $49.975 million in series 2010A-2 bonds, $71.81 million in series 2010A-3 bonds, $3 million in series 2010A-4 federally taxable bonds, $33.33 million in series 2010A-5 variable-rate AMT bonds and $100 million in series 2010A-6 variable-rate taxable bonds.

The bonds will be sold on a negotiated basis with Bank of America Merrill Lynch as the bookrunner for the variable-rate bonds and the co-lead manager for the 2010A-1, 2010A-2, 2010A-3, 2010A-4 and 2010B bonds. The lead managers for the fixed-rate bonds are Citigroup Global Markets Inc. and Goldman, Sachs & Co.

The 2010A-1 bonds are due 2011 to 2017, and the 2010A-2 bonds are due 2010 to 2021 with term bonds due 2025, 2030, 2035 and 2039. The 2010A-3 bonds are due 2010 to 2021 with term bonds due 2025 and 2028. The 2010A-4 bonds are due 2011, and the 2010A-5 bonds are due 2031. The 2010A-6 bonds are due 2039. The 2010B bonds are due 2010 to 2017.

Proceeds will be used to fund mortgage loans.

Oregon to sell $113.66 million

Also ahead, the State of Oregon is preparing to bring to market $113.66 million in series 2010A revenue refunding bonds for the Oregon Facilities Authority, said a preliminary official statement.

The bonds (/A-/) will be sold through senior manager Piper Jaffray & Co.

Proceeds will be used to refinance or finance construction loans and refund the authority's series 1998 bonds.

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