Munis end the week unchanged; terms released for Chicago O'Hare's $1.18 billion airport sale

By Sheri Kasprzak

New York, April 16 - Municipals rounded out a very heavy week for primary action relatively unchanged, said a market insider.

"It's been really quiet today," said the trader. "There's not a lot moving."

Meanwhile, in primary, the details emerged for the massive $1.178 billion in series 2010 airport revenue bonds sale from the City of Chicago for Chicago O'Hare International Airport. Those bonds priced on Wednesday, but the pricing sheets were not released until Friday.

The sale included $91.59 million in series 2010A general airport third-lien bonds, $578 million in series 2010B general airport third-lien Build America Bonds, $171.45 million in series 2010C general airport third-lien bonds, $55.85 million in series 2010D general airport third-lien refunding bonds, $47.36 million in series 2010E general airport third-lien refunding bonds and $95.735 million in series 2010F general airport third-lien bonds.

It also included $24.965 million in series 2010A passenger facility charge taxable bonds, $51.305 million in series 2010B passenger facility charge taxable bonds, $48.495 million in series 2010C passenger facility charge taxable bonds and $12.9 million in series 2010D passenger facility charge taxable bonds.

Bank of America brought bonds

The bonds were sold through Bank of America Merrill Lynch.

The 2010A general airport bonds are due 2012 to 2030 with term bond due 2035 and 2040. Coupons range from 3% to 5%. The 2035 bonds have a 5% coupon priced at 99.013, and the 2040 bonds have a 5% coupon priced at 98.472.

The 2010B general airport bonds are due 2038 and 2040 with a split maturity for the 2040 bonds. The 2038 bonds have a 6.845% coupon priced at par. The 2040 bonds have a 6.145% coupon and a 6.395% coupon, both priced at par.

The 2010C general airport bonds are due 2021 to 2030 with a term bond due 2035 that has a split maturity. The coupons range from 4% to 5.25%. The 2035 bonds have a 4.875% coupon priced at 100.031 and a 5.25% coupon priced at 102.896.

The 2010D general airport bonds are due 2014 to 2019 with coupons from 5% to 5.25%.

The 2010E general airport bonds are due 2011 to 2016 with coupons from 1.75% to 5%.

The 2010F general airport bonds are due 2020 to 2030 with term bonds due 2035 and 2040. The serials have coupons from 4.25% to 5.25%. The 2035 bonds have a 5% coupon priced at 99.013, and the 2040 bonds have a 5% coupon priced at 98.472.

The 2010A passenger facility bonds are due 2025 to 2030 with term bonds due 2035 and 2040. Coupons range from 5% to 5.25%. The 2035 bonds have a 5% coupon priced at 97.916, and the 2040 bonds have a 5% coupon priced at 97.137.

The 2010B passenger facility bonds are due 2025 to 2030 with a term bond due 2035. The serials have coupons from 5% to 5.25%. The 2035 bonds have a 5% coupon priced at 97.137.

The series 2010C passenger facility bonds are due 2019 to 2028 with a term bond due 2031. Coupons range from 5.272% to 6.322%, all priced at par. The 2031 bonds have a 6.395% coupon, also priced at par.

The 2010D passenger facility refunding bonds are due 2011 and from 2013 to 2019 with coupons from 2% to 5%.

Proceeds will be used to refund commercial paper notes as well as modernize Chicago O'Hare International Airport.

Northampton County bonds price

Meanwhile in Friday's primary deals, the Northampton County General Purpose Authority of Pennsylvania priced $102.365 million in series 2010 hospital revenue bonds for St. Luke's Hospital, said a pricing sheet.

The sale included $91.975 million in series 2010A bonds and $10.39 million in series 2010B bonds.

The bonds (A3/BBB+/) were sold through Bank of America Merrill Lynch.

The 2010A bonds are due 2010 to 2022 with 3% to 5.25% coupons. The 2010B bonds are due 2032 and 2033 with a split maturity in 2032. The 2032 bonds have a 4.5% coupon and a 5.5% coupon. The 2033 bonds have a 5.5% coupon.

Proceeds will finance capital projects for St. Luke's Hospital in Bethlehem, Pa., as well as refund series 1992, 1993 and 2007 bonds.

The authority, based in Easton, Pa., acquires, constructs, finances, holds and improves hospitals and related facilities within the county.

Illinois to price $700 million

Looking to the upcoming week, the State of Illinois plans to come to market on Tuesday with $700 million in series 2010-3 general obligation taxable Build America Bonds, said a sales calendar.

The bonds (A2/A+/A+) will be sold through William Blair & Co. Inc.

Proceeds will be used to provide grants to public schools within the state as well as fund transportation projects and finance other capital projects.

Connecticut G.O. sale ahead

Elsewhere during the coming week, the State of Connecticut plans to price its previously announced $642.335 million in series 2010 G.O. bonds and G.O. bond anticipation notes on Wednesday, according to calendar of upcoming deals.

The offering includes $105 million in series 2010A G.O. bonds, $184.25 million in series 2010A taxable G.O. Build America Bonds and $353.085 million in series 2010A G.O. BANs.

The bonds (Aa3/AA/AA) will be sold on a negotiated basis with M.R. Beal & Co. as the senior manager.

The 2010A G.O. bonds are due 2015 to 2018, and the 2010A G.O. Build America Bonds are due 2019 to 2026. The 2010A BANs are due May 19, 2011.

Proceeds will be used to fund a variety of capital projects throughout the state.

Oregon higher education bonds planned

In other upcoming offerings, the Oregon State Board of Higher Education is scheduled on Tuesday to price $343.265 million in series 2010 G.O. bonds, said a preliminary official statement.

The sale includes $44.725 million in series 2010A tax-exempt bonds, $73.5 million in series 2010B federally taxable bonds, $113.73 million in series 2010C Build America Bonds, $21.415 million in series 2010D tax-exempt bonds, $31.5 million in series 2010E federally taxable bonds and $58.395 million in series 2010F tax-exempt bonds.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the senior managers.

The 2010A bonds are due 2016 to 2028 with a term bond due 2033. The 2010B bonds are due 2011 to 2025, and the 2010C bonds are due 2026, 2030 and 2039. The 2010D bonds are due 2023 to 2029 with a term bond due 2039. The 2010E bonds are due 2011 to 2026 with a term bond due 2035. The 2010F bonds are due 2013 to 2022.

Proceeds will be used to fund a variety of capital projects for Oregon State University and to refund existing G.O. bonds issued for the university.

The board, based in Salem, Ore., is the governing board for the seven-campus Oregon State System of Higher Education.

Puerto Rico power sale ahead

Also ahead, the Puerto Rico Electric Power Authority is scheduled to sell $275 million in series ZZ power revenue refunding bonds on Wednesday, according to a calendar of upcoming deals. The authority is also expected to price $350 million in series 2010YY Build America Bonds, but the pricing date for those bonds was not immediately available.

The bonds (A3/BBB+/BBB+) will be sold through Morgan Stanley & Co. Inc. and Citigroup.

The bonds are due 2011 to 2028 with term bonds.

Proceeds will be used to refund existing power revenue bonds.

Based in San Juan, the authority develops and utilizes water and power resources in the commonwealth.

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