Munis finish out week unchanged; Chicago Board of Education plans $547.34 million G.O. sale

By Sheri Kasprzak

New York, Aug. 28 - Friday proved to be an uneventful day for the municipals market, said a market insider reached in the afternoon.

"It's a typical Friday," the trader said.

"We only really work three days a week here lately. Fridays are typically slow, but it's quiet even for Friday here. I'd say we're flat."

Among the light secondary market activity were the Commonwealth of Pennsylvania's second series refunding bonds priced earlier in the week. The 5% 2018 bonds were seen at 2.988% after pricing at 3%. The bonds held steady for most of the day, the trader noted, but finally gave up a couple of basis points late in the session.

Also out of the Keystone State, the Upper St. Clair Township School District's series 2009B Build America Bonds, which priced earlier in the week, were moving in the secondary. The 6.086% 2039 bonds were seen at 5.78% after pricing at par.

Elsewhere, the Dallas County Hospital Authority's series 2009B Build America Bonds were moving as well. The 6.171% 2034s were seen at 6.013% Friday afternoon. The bonds priced at par.

Primary market thins

Looking out to the week ahead, the flood of primary market issues seems to be waning. The largest offering of the week is a $375 million sale from the San Francisco Public Utilities Commission. The offering is fairly small compared to the billion-dollar offerings from recent weeks.

The week will also bring a $313.19 million offering of series 2009 taxable general obligation bonds from the City of Waterbury in Connecticut, said a sales calendar.

The bonds will be sold through lead manager William Blair & Co.

The bonds are due 2010 to 2019.

Proceeds will be used to make a deposit to the city's pension plan.

Chicago BOE bonds ahead

Out on the horizon, the Board of Education of the City of Chicago plans to sell $547.335 million in series 2009 G.O. bonds, said a preliminary official statement.

The deal includes $501.915 million in series 2009E unlimited tax G.O. Build America Bonds and $45.42 million in series 2009F tax-exempt unlimited tax G.O. bonds.

Merrill Lynch & Co. Inc. is the senior manager for the negotiated deal.

The maturities have not been set.

Proceeds will be used to fund capital improvements throughout the city's schools.

New Mexico foundation plans sale

Also coming up, the New Mexico Educational Assistance Foundation is planning to bring to market $299.335 million in new money education loan bonds, said a preliminary official statement.

The sale includes $42.5 million in series 2009A weekly rate senior bonds, $197.76 million in series 2009B fixed-rate senior bonds and $59.075 million in series 2009C fixed-rate senior bonds.

The bonds (Aaa/VMIG 1//AAA/F1+) will be sold on a negotiated basis with RBC Capital Markets Inc. and Merrill Lynch.

The 2009A bonds are due Nov. 1, 2028. The 2009B bonds are due 2010 to 2020, and the 2009C bonds are due 2010 and 2014 to 2015.

Proceeds will be used to refund the foundation's outstanding series 1995, 1996, 1998, 2001, 2003, 2005, 2006 and 2008 bonds.

Nassau bonds coming up

In other upcoming deals, the County of Nassau in New York plans to price $110 million in series 2009 G.O. bonds, said a preliminary official statement. The sale is scheduled for Sept. 9.

The deal includes $89.6 million in series 2009F G.O. bonds and $20.4 million in series 2009G Build America Bonds. The 2009F bonds are due 2011 to 2023, and the 2009G bonds are due 2023 to 2025.

The bonds (A2/A+/A+) will be sold competitively with Public Financial Management, Inc. as the financial adviser.

Proceeds will be used to pay for general capital expenditures.

Charleston Medical Center prices

Moving to recent pricings, the West Virginia Hospital Finance Authority sold $179.07 million in series 2009A hospital revenue refunding and improvement bonds for the Charleston Medical Center on Thursday, said a pricing sheet released Friday.

The bonds (A2) were sold through lead managers Merrill Lynch and BB&T Capital Markets Inc.

The bonds are due 2010 to 2021 with term bonds due 2023, 2025, 2028 and 2032.

Proceeds will be used to refund Charleston Medical Center's outstanding series 2002 bonds as well as pay fees associated with a swap termination agreement.

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