Municipal trading grinds through tough market; Pennsylvania to bring $300 million G.O.s

By Cristal Cody and Aaron Hochman-Zimmerman

New York, March 2 - The municipal market fell beyond normal levels of typical Monday quiet, a trader said.

"That's the understatement," he said when asked if trading had been largely squashed by falling equities.

"It's the culmination of AIG, the S&P below 700; there's a lot of things out there," he said that are keeping investors tightly in their moorings.

"People don't see a lot of visibility," he said. "There's no reason to jump in right now."

"There is the perception that the new administration's policies are not tailored for equities," which need the free market to grow, he said.

The trader guffawed when asked if there were any interesting new issues in the pipeline.

When asked specifically about the State of New York's $456.945 million general obligation bonds expected this week, he mustered his optimism to recall the old maxim: "There are no bad bonds, just bad prices."

Going forward, the focus on the primary side will likely shift to more taxable issuance, he said, even as federal dollars stream into municipalities.

The $38.755 million series 2009B portion of the New York bonds will be taxable.

Market expects $300 million Keystone G.O.s

Also in the primary market's near future, the Commonwealth of Pennsylvania intends to price $300 million in G.O. bonds through a competitive sale on March 10, according to a preliminary official statement.

The first series 2009 bonds have serial maturities from 2010 through 2029.

Buchanan Ingersoll & Rooney PC is the bond counsel for the sale.

The proceeds will be used for construction and rehabilitation of public buildings and to fund redevelopment assistance projects and bridge projects.

University of Dayton to price $75 million

Meanwhile, the State of Ohio plans to price $75 million in revenue bonds for the University of Dayton, according to a preliminary official statement.

The series 2009 higher education facility bonds have serial maturities from 2010 through 2028 and terms due 2032 and 2039.

Morgan Stanley & Co. Inc. is the senior manager of the negotiated sale.

The proceeds will be used to finance university improvements, partially refund the series 1997 and series 1998 revenue bonds and to repay a bank loan made by Wells Fargo Bank, NA and used to refund the series 2002A revenue bonds.

Michigan Municipal Bond Authority plans $67.47 million

Just north, the Michigan Municipal Bond Authority plans to sell $67.465 million in series 2009B local government loan program revenue bonds in four tranches.

The $37.385 million Charter County of Wayne local project bonds have serial maturities from Nov. 1, 2009 through Nov. 1, 2018 and terms due 2026 and 2028.

The $1.195 million revenue sharing bonds have serial maturities from Nov. 1, 2009 through Nov. 1, 2018 and terms due 2023 and 2028.

The $23.57 million state qualified school bonds have serial maturities from 2010 through 2016.

The $5.315 million school program bonds have serial maturities from 2010 through 2014.

Fifth Third Securities will manage the negotiated sale.

The proceeds will be used to purchase municipal obligations.

Gilbert's Public Facilities Municipal Property to price $78.77 million

Also, the Public Facilities Municipal Property Corp. in the Town of Gilbert, Ariz., intends to price $78.765 million revenue bonds, according to a preliminary official statement.

The series 2009 bonds (Aa3/AA/) have serial maturities from 2009 through 2028.

Wedbush Morgan Securities Inc. will manage the negotiated sale.

The proceeds will be used to finance the acquisition of property for public safety and parks and recreation facilities.

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