Munis end week mostly unmoved; State Public Works Board of California to sell $820 million

By Sheri Kasprzak

New York, Oct. 16 - Municipals saw some light at the end of the tunnel Friday, with firmness seen on the long end of the yield curve. Meanwhile, the week ahead will feature a major offering from the State Public Works Board of California.

"Out past 20 years, we're seeing yields down by 2 to 3 basis points," said one trader reached in the afternoon.

"The rest is basically unmoved. Not much is trading, but there's some activity out there."

Amid the light trading action Friday, the bonds recently priced by the Lycoming County Authority for Susquehanna Health System were seen moving. The 5.5% 2028 bonds were seen at 5.638%.

Elsewhere, the University of Massachusetts Building Authority's series 2009 Build America Bonds were also trading. The 6.423% 2029 bonds were seen at 6.211%. The 6.573% 2039 bonds were seen at 6.186%.

California Public Works sale ahead

The State Public Works Board of California is expected to price $820 million in series 2009 lease revenue bonds on Wednesday, said a sales calendar.

The bonds will be sold through senior managers Morgan Stanley & Co. Inc. and RBC Capital Markets Inc.

Proceeds will be used to fund capital projects and improvements to the state's prisons and rehabilitation facilities.

Catholic Health bonds to price

Also looking to the coming week, Catholic Health Initiatives is set to sell $762.145 million in series 2009 revenue bonds through a variety of authorities, said a preliminary official statement. The sale will take place Thursday, according to a sales calendar.

The offering includes $527.705 million in series 2009A revenue bonds through the Colorado Health Facilities Authority, $75.695 million in series 2009A revenue bonds through the Kentucky Economic Development Finance Authority and $158.745 million in series 2009A revenue bonds through the County of Montgomery, Ohio.

The bonds (Aa2/AA/AA) will be sold through senior managers Morgan Stanley and J.P. Morgan Securities Inc.

The maturities have not been set.

Proceeds will be used to construct, acquire, equip, renovate or repair Catholic Health facilities in Colorado, Iowa, Kentucky, Nebraska, New Jersey and Ohio.

Catholic Health Initiatives is based in Denver.

Cook County, Ill., deal planned

In other news, the County of Cook in Illinois plans to price $400 million in series 2009 general obligation and G.O. refunding bonds, said a preliminary official statement. The sale is scheduled for Wednesday.

The sale includes $300 million in series 2009C G.O. refunding bonds, $95 million in series 2009D G.O. capital equipment bonds and $5 million in series 2009E taxable G.O. bonds.

Loop Capital Markets LLC and Ramirez & Co. Inc. are the senior managers.

The maturities have not been determined.

Proceeds will be used to refund existing debt and fund capital equipment costs.

The county seat is Chicago.

MEAG to power deal

Coming up on Wednesday, the Municipal Electric Authority of Georgia is set to price $254.785 million in series 2009B subordinated bonds, said a sales calendar.

The deal includes $245.445 million in series 2009B Project One subordinated bonds and $9.34 million in series 2009B general resolution project subordinated bonds.

The bonds (A2/A/A+) will be sold through senior manager Citigroup Global Markets Inc.

Proceeds will be used to fund capital improvements.

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