Fairfax County, Va., sells $400.9 million in public improvement bonds; munis end session flat

By Sheri Kasprzak

New York, Oct. 15 - Municipals ended the session flat, and some market sources were grateful for that after 10-year muni yields gained 10 basis points Wednesday.

"We're really mostly unmoved today," one trader said.

"It's very quiet for the most part, but after yesterday, I'll take it. We've been falling for about a week, so it's good to just stabilize for a day."

Meanwhile, in the primary market, the details were released on the County of Fairfax in Virginia's $400.895 million in series 2009 public improvement bonds.

The sale included $131.8 million in series 2009C refunding bonds, $66.895 million in series 2009D public improvement bonds and $202.2 million in series 2009E Build America Bonds, said a pricing sheet.

The 2009C bonds are due 2014 to 2019 with coupons from 3% to 5%, and the 2009D bonds are due 2010 to 2014 with coupons from 2% to 5%. The 2009E bonds are due 2015 to 2029 with coupons from 3.1% to 5.25%.

The bonds were sold competitively with Merrill Lynch & Co. as the winning bidder.

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

The county seat is Fairfax, Va.

Michigan brings $150 million

Elsewhere Thursday, the State of Michigan sold $150 million in series 2009 state trunk line fund refunding bonds, said a sellside source connected to the offering.

The bonds were sold through Loop Capital Markets LLC and Merrill Lynch & Co. Inc.

The bonds are due 2019 to 2026 with yields ranging from 4.02% to 4.58%.

Proceeds will be used to refund the state's series 1998A state trunk line fund bonds.

In other pricing news, the Lycoming County Authority of Pennsylvania sold Thursday $137.48 million in series 2009A health system revenue bonds, said a pricing sheet. The bonds were sold on behalf of Susquehanna Health System.

The bonds (/AAA/AA) were sold through senior managers Barclays Capital Inc. and M&T Securities Inc.

The bonds are due 2010 to 2021 with term bonds due 2023, 2028 and 2039. The serials have coupons from 4% to 5.5%. The 2023 bonds have a 5.375% coupon, priced at 98.799, and the 2028 bonds have a 5.5% coupon, priced at 98.273. The 2039 bonds have a 5.75% coupon, priced at 97.9.

Proceeds will be used to construct a new energy service center at Williamsport Hospital, renovate Muncy Valley Hospital and refund the authority's series 1995 bonds.

Susquehanna Health is based in Williamsport, Pa., which is the seat of Lycoming County.

Ohio Housing to sell $75 million

Also on Thursday, the Ohio Housing Finance Agency sold $75 million in series 2009 residential mortgage revenue bonds, according to a term sheet.

The sale included $28.345 million in series 2009E non-AMT bonds and $46.655 million in series 2009F non-AMT bonds.

The 2009E bonds are due 2013 to 2019 with coupons from 1.9% to 3.8%, all priced at par, with a 2039 term bond with a 5% coupon, also priced at par.

The 2009F bonds are due 2010 to 2012 with term bonds due 2024, 2029 and 2040. The coupons range from 0.8% to 1.6%, all priced at par. The 2024 bonds have a 4.5% coupon, the 2029 bonds have a 4.75% coupon and the 2040 bonds have a 5% coupon, all priced at par.

Barclays was the senior manager.

Proceeds will fund mortgage loans.

Catholic Health to bring $762.15 million

Looking to upcoming sales, the 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 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 & Co. Inc. 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.

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