Municipals close out week mostly firmer; Catholic Health Care West to bring $476.02 million

By Sheri Kasprzak

New York, Oct. 21 - Municipals closed out a week marked by improvements on a firmer note, although some weakness was seen on the long end of the curve, market insiders reported.

Yields were down 1 to 5 basis points across most of the curve, though 30-year yields were up about a basis point, said one trader.

"There might be just the slightest bit of weakness out long, but it was a pretty good day for the most part," said one trader.

"[It's] firmer just about everywhere else."

Twenty-year bonds got the biggest boost. Yields were seen down more than 5 bps.

Alan Schankel, managing director with Janney Montgomery Scott LLC, said Friday that the coming week's new-issue calendar will be comparatively light with $5.5 billion of new offerings expected.

Catholic Health bonds set

Heading up the coming week's pricing action, Catholic Health Care West is slated to bring $476.02 million of series 2011 revenue bonds in two tranches through J.P. Morgan Securities LLC.

The deal includes $349.89 million of series 2011A bonds offered through the California Health Facilities Financing Authority and $126.13 million of series 2011B bonds sold through the Arizona Health Facilities Authority.

Proceeds from the bonds (/A/A+) will be used to finance and refinance capital projects at Catholic Health Care West facilities in California and Arizona.

Chicago Transit to sell debt

In other upcoming offerings for the week ahead, the Chicago Transit Authority plans to sell $455.75 million of series 2011 sales tax receipts revenue bonds (Aa3/AA/) through Wells Fargo Securities LLC and Morgan Stanley & Co. LLC.

The bonds are due 2021 to 2040.

Proceeds will be used to purchase rail cars and make other improvements approved by the authority's board.

California preps deal

Coming up on Tuesday, the State of California will offer $450 million of series 2011 economic recovery refunding bonds (Aa3/A+/A+).

The bonds will be sold through senior managers Barclays Capital Inc. and Wells Fargo Securities.

The proceeds will be used to refund the state's series 2004A and 2004C economic recovery bonds.

Illinois to price

Another major offering is also poised to price on Tuesday. The State of Illinois is scheduled to bring $300 million of series 2011 sales tax revenue Build Illinois Bonds.

Robert W. Baird & Co. Inc. will be the financial adviser for the competitive offering.

The bonds are due 2013 to 2036.

Proceeds will be used to finance some capital projects.

North Texas Tollway deal ahead

Looking out on the horizon, the North Texas Tollway Authority plans to sell $673.72 million of series 2011 special projects system revenue bonds, said a preliminary official statement.

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

The bonds are due 2019 to 2033 with term bonds, the maturities of which have not been set.

Proceeds will be used to fund the construction and development of the Chisholm Trail Parkway in Fort Worth and Cleburne.

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