Municipals end week unchanged; New York's MTA plans $500 million bond sale for Wednesday

By Sheri Kasprzak

New York, March 12 - Municipals spent Friday mostly unmoved with light secondary action, traders reported. Meanwhile, primary activity stacked up on the calendars for the coming week.

"It's pretty much a typical Friday," one trader told Prospect News.

There's "light trading. We're flat for the most part. There might be some firming in spots, but I'd call it flat," the trader said.

Another trader concurred.

It's "very quiet," she said. "Tone, I'd call it unmoved. The major activity today is for those California bonds that priced yesterday."

Indeed, the State of California's various-purpose general obligation bonds were particularly popular. The 5% 2015 bonds were trading to yield 2.57% and the 2019s were seen at a 4.18% yield. The 4.5% 2021s were trading at a 4.54% yield, and the 2026 bonds were trading at a 5.05% yield. The 5.375% 2030 bonds were seen at a 5.4% yield.

Elsewhere, Ascension Health of Wisconsin's recently priced revenue bonds were seen in action. The 5% 2033 bonds were trading at a 4.546% yield.

In other trading news, JEA of Florida's electric system revenue bonds were also seen moving. The 4.5% 2030s were trading at a 4.387% yield.

MTA to price $500 million

Moving to the coming week's primary action, the Metropolitan Transportation Authority of New York City is set to price $500 million in series 2010 dedicated tax fund bonds on Wednesday, according to a sales calendar.

One sellsider offered that the MTA's bonds typically do very well, and this offering will likely provide few surprises.

"It's an interesting deal in terms of the size, but I don't expect it's going be very surprising in terms of pricing," the sellsider said. "They generally get decent pricing."

The bonds will be sold on a negotiated basis with J.P. Morgan Securities Inc. and Ramirez & Co. Inc. as the lead managers.

The MTA plans to use the proceeds to fund commuter projects.

New York water deal planned

Also out of New York City, the New York City Municipal Water Finance Authority plans to bring $360 million in series 2010FF water and sewer system second general resolution revenue bonds on Tuesday, according to a preliminary official statement and a forward bond offering calendar.

The bonds (Aa3/AA+/AA) will be sold on a negotiated basis. The lead manager is M.R. Beal & Co.

Proceeds will be used to redeem existing first or second resolution bonds.

Orlando Expressway on tap

The Orlando-Orange County Expressway Authority of Florida is also scheduled on Tuesday to sell $350 million in series 2010A revenue bonds, according to a sales calendar.

The bonds (A1/A/A) will be sold on a negotiated basis with JPMorgan as the lead manager.

Proceeds will fund construction projects in the authority's five-year plan.

Massachusetts HEFA deal ahead

Coming up on Thursday, the Massachusetts Health and Educational Facilities Authority is set to sell $325.435 million in series 2010 revenue bonds for Northeastern University on Thursday, according to a sales calendar.

The offering includes $251.425 million in series 2010A tax-exempt bonds and $74.01 million in series 2010B Build America Bonds.

The bonds (A2) will be sold through Barclays Capital Inc.

The 2010A bonds are due 2010 to 2030 with a term bond due 2035. The 2010B bonds are due 2015, 2020, 2030 and 2035.

Proceeds will be used to refund existing bonds and terminate a swap termination agreement connected to the refunded bonds.

Arlington IDA sale ahead

On the horizon, the Industrial Development Authority of Arlington County in Virginia is set to sell $145 million in series 2010 fixed-rate hospital revenue refunding bonds for the Virginia Hospital Center Arlington Health System, according to a preliminary official statement.

The bonds (A2/A+/) will be sold on a negotiated basis with Bank of America Merrill Lynch and Morgan Stanley & Co. Inc. as the senior managers.

The bonds are due 2010 to 2020 with term bonds due 2025 and 2031.

Proceeds will be used to fund a loan to the hospital for the purpose of refunding the hospital's series 2005 bonds.

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