Liberty Development brings long-awaited deal; market ends on positive tone; calendar lightens

By Cristal Cody

Prospect News, April 21 - New York Liberty Development Corp. surprised the market with the long-awaited sale of its revenue bonds on Thursday, a municipal bond source said.

Municipals were firmer, though volume was light as the markets wound down for the early close.

"Two to three basis points higher in spots," one source said. "It's got a pretty positive tone. There seems to be a willingness to take bonds down over the long weekend because the forward supply is just not there."

The light supply likely will maintain the positive trend in rates. A couple of deals are expected in the week ahead, "but nothing overwhelming," a source said.

The biggest deal is expected from Chicago O'Hare International Airport, which will price $998.855 million of revenue bonds in the upcoming week, a source said. The deal had been expected to price before the Good Friday holiday.

"It's a national kind of deal, so it should get taken care of easily," the source said.

Liberty wraps deal

On Thursday, New York Liberty Development priced $2.5 billion of revenue bonds (Aaa//AAA) due Nov. 1, 2011 at par to yield 0.37%, a municipal bond source said.

The deal had been postponed since December on climbing interest rates and priced late in the day ahead of the long weekend.

"It just popped up and it's done. That's out of the way," the source said.

The bonds were sold for Silverstein Properties Inc.

Goldman Sachs & Co. managed the negotiated sale.

Proceeds will be used to finance the 4 World Trade Center project.

New York-based New York Liberty Development is an arm of the Empire State Development Corp.

Louisiana facilities to price

In one new deal announced, the Louisiana Public Facilities Authority plans to sell $150 million of revenue bonds for the Ochsner Clinic Foundation, according to a preliminary official statement.

The series 2011 bonds (Baa1//BBB+) have serial maturities from 2017 through 2021 and term bonds due 2031 and 2041.

The bonds will price through a negotiated sale. Citigroup Capital Markets Inc. and Barclays Capital Inc. are the lead managers. Merrill Lynch and Morgan Keegan & Co. Inc. are co-managers.

Proceeds will be used to finance and refinance costs to acquire, construct, renovate and repair hospital and health-care facilities in the state.

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