Munis seen weaker in light trading action; New York Liberty prices $2.59 billion revenue bonds

By Sheri Kasprzak

New York, Dec. 22 - Municipals felt weaker on Tuesday, market insiders said. Meanwhile, the New York Liberty Development Corp.'s $2.594 billion in liberty revenue bonds priced as the corporation pushed to meet a year-end deadline for the financing.

"We're probably off by 2, 3 basis points," reported one trader.

"It's a really quiet day. Not a lot is trading. Tomorrow is probably going to be even slower. We are not expecting very much."

Amid the light trading activity, the Iowa Student Loan Liquidity Corp.'s series 2009-2 bonds were seen moving. The 5.5% 2025 bonds were seen at 5.2%.

Elsewhere, New York Liberty Development sold its previously announced $2.594 billion in series 2009 multi-modal liberty revenue bonds on Tuesday. The final pricing details were not immediately available.

The deal included $2.581 billion in series 2009A bonds and $12.5 million in series 2009B bonds.

Goldman, Sachs & Co. is the lead manager.

The 40-year bonds will finance the construction of three office buildings at the World Trade Center site in downtown Manhattan.

South Jersey Port bonds price

In other primary market activity, the South Jersey Port Corp. sold $157.9 million in series 2009 revenue bonds (A1/A/) Tuesday, said a pricing sheet.

The sale included series 2009P-1, series 2009P-2 and series 2009P-3 Build America Bonds.

Raymond James & Associates Inc. was the lead manager.

The 2009P-1 bonds are due 2012 to 2013 with 2.995% to 3.145% coupons, priced at par.

The 2009P-2 bonds are due 2013 to 2017 with term bonds due 2022 and 2023. The serials have 3% to 4% coupons. The 2022 and 2023 bonds both have 5.75% coupons, priced at par.

The 2009P-3 bonds are due 2018 to 2021 with 5.912% to 6.252% coupons, all priced at par. The 2029 term bond has a 7.065% coupon, also priced at par, and the 2040 term bond has a 7.365% coupon, priced at par.

Proceeds will be used to fund general capital expenditures.

The company is based in Camden, N.J.

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