Municipal yields end week mostly unchanged; D.C. brings $126.67 million in refunding bonds

By Sheri Kasprzak

New York, March 26 - Municipal yields were largely unchanged on Friday after some weakness earlier in the week, market insiders reported.

"It's fairly light today," said one trader reached in the afternoon.

"Yields are basically flat overall. It's pretty quiet."

Amid the trading activity Friday, the State of California's series 2010 various-purpose G.O. bonds were moving. The 7.625% 2040 bonds were trading at 7.412% Friday afternoon.

On the primary side of the market, the District of Columbia sold Friday $126.67 million in series 2010C adjusted Sifma rate income tax secured revenue refunding bonds (Aa2/AAA/AA), said an official statement.

The bonds are due 2010 to 2011. The 2010 bonds are priced at the Sifma rate plus 2 basis points, and the 2011 bonds are priced at the Sifma rate plus 18 bps.

Morgan Stanley & Co. Inc. was the senior manager.

Proceeds will be used to refund the district's series 2008B bonds.

Orlando aviation bonds to price

Looking to the coming week, the Greater Orlando Aviation Authority of Florida is scheduled to price $167.505 million in airport facilities revenue and revenue refunding bonds on Tuesday, said a preliminary official statement and calendar of upcoming sales.

The deal includes $82.11 million in series 2010A revenue bonds and $85.395 million in series 2010B refunding bonds.

The bonds (Aa3/A+/AA-) will be sold on a negotiated basis with Morgan Stanley as the senior manager.

The authority is expected to use the proceeds to improve the airport's terminal baggage claim system and to refund existing debt.

The authority operates the Orlando International Airport and the Orlando Executive Airport.

Stanford University to sell $250 million

Also ahead, the California Educational Facilities Authority plans to bring to market $250 million in series 2010U-1 revenue bonds for Stanford University, said a preliminary official statement.

The bonds (Aaa//AAA) will be sold on a negotiated basis with Morgan Stanley as the lead manager.

Proceeds will be used to finance a loan to the university for capital expenditures.

Alexian Brothers bonds ahead

Also ahead, the Illinois Finance Authority is expected to sell $135.97 million in series 2010 revenue bonds for Alexian Brothers Health System, said a preliminary official statement.

The bonds (A3//A-) will be sold through senior manager Bank of America Merrill Lynch.

Proceeds will be used to reimburse the health system for costs associated with upgrading St. Alexius Medical Center in Chicago as well as other upgrades made to Alexian Brothers hospitals. The remainder will be used to refund existing debt.

The authority, based in Chicago, provides loans to nonprofit organizations, businesses, agriculture operations and local governments throughout the state. Alexian Brothers, based in Addison, Ill., is a health-care network operated by the Congregation of Alexian Brothers, an apostolic Catholic order.

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