Municipals seen slightly weaker; Northeast Georgia Health System to price $630 million bonds

By Sheri Kasprzak

New York, Jan. 19 - Municipal yields were up slightly on Tuesday as the muni market cranked back up after the Martin Luther King Jr. Day holiday. Meanwhile, the primary calendar is building up and includes a large offering from the Northeast Georgia Health System.

"Yields are a little higher today," reported one trader reached in the afternoon.

"We're probably following Treasuries. It's been a fairly quiet day, not a lot trading, but it's looking like a busy week."

Amid the light trading activity, the Birmingham Waterworks Board of Alabama saw its recently priced series 2009 subordinate revenue bonds moving. The 4.375% 2024 bonds were trading at 4.479%.

Elsewhere, the Wisconsin Health and Educational Facilities Authority's bonds sold for Aurora Health Care Inc. were trading Tuesday. The 5.625% 2033 bonds were seen at 5.65%.

Northeast Georgia sale planned

Coming up on Wednesday, the Northeast Georgia Health System is scheduled to bring $630 million in series 2010 revenue bonds through Merrill Lynch & Co.

Proceeds from the offering will be used to refund the system's series 2007G and 2008B-H bonds.

The health system is based in Gainesville, Ga.

Princeton to price

Also on Wednesday, the New Jersey Educational Facilities Authority is set to price $250 million in series 2010B revenue bonds for Princeton University.

One sellsider reached during the day said the offering could draw a lot of interest.

"It's a well-rated institution," he said.

"I wouldn't be surprised if they receive a lot of bids and get some very good pricing. I have no doubt that their great rating is part of the reason they decided to go competitive. It's really the eternal question though, to go negotiated or competitive. There are pros and cons to both. I'm sure it will do well, though."

The bonds (Aaa/AAA/), which are due 2012 to 2040, will be sold competitively with Public Financial Management Inc. as the financial adviser.

Proceeds will be used to fund the maintenance of university facilities and the renovation of the university's buildings.

Clark County airport bonds ahead

On Thursday, Clark County in Nevada will bring $800 million in airport bonds.

The sale includes $450 million in series 2010 Las Vegas-McCarran International Airport passenger facility charge revenue bonds and $350 million in series 2010 subordinate lien revenue bonds (Aa2//A).

The bonds will be sold through lead manager Citigroup Global Markets Inc.

Proceeds will be used to fund airport improvements.

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