Munis close mostly unchanged; Empire State Development to sell $1.5 billion in revenue bonds

By Sheri Kasprzak

New York, Nov. 16 - Municipals were mostly unmoved to round out Monday. Secondary volume was light, but no lighter than the average Monday, said one trader.

"It's quiet," said the trader. "The long end [of the yield curve] is probably better by a few basis points, but it's mostly unchanged today."

Amid the light trading activity, Gwinnett County Hospital Authority of Georgia saw its recently priced series 2009B revenue bonds moving. The 5% 2026 bonds were seen at 4.738%.

Elsewhere, the Massachusetts Health and Educational Facilities Authority's bonds issued for Children's Hospital were trading. The 5.25% 2039s were trading at 5.15%.

One sellside source reached Monday afternoon said he feels primary volume seems to already be slowing ahead of the Thanksgiving holiday.

"It does look like things are slowing down a little bit," he said.

"Issuers probably are holding off until after the holiday. It might be a couple of weeks before things really get back to normal. I don't think it's a long-term thing."

Empire State Development sale ahead

Looking to Tuesday's pricing activity, the Empire State Development Corp. of New York plans to price $1.501 billion in series 2009 New York State urban development state personal income tax revenue bonds (/AAA/AA).

Goldman, Sachs & Co. will bring the bonds.

The sale includes $501.51 million series 2009C bonds, $224.12 million in series 2009D taxable bonds and $775.615 million in series 2009E Build America Bonds.

Proceeds will be used for capital improvements.

The other billion-dollar offering of the week comes to market on Thursday from the California State Public Works Board.

The board will sell $1.09 billion in series 2009 bonds through Wachovia Bank, NA.

The proceeds from the sale will be used to construct, acquire, equip and operate public buildings.

Iowa Student Loan bonds to price

Elsewhere on Tuesday, the Iowa Student Loan Liquidity Corp. plans to bring $231.86 million in series 2009 student loan revenue bonds (A1/A/) through lead manager Merrill Lynch & Co.

The sale includes series 2009-1 bonds, which are due 2010 to 2018 with term bonds due 2022, 2027 and 2031; series 2009-2 bonds, which are due 2025; and series 2009-3 bonds, which are due 2018, 2019 and 2024.

Proceeds will be used to fund student loans.

Another offering involving an institute of higher learning is set for Tuesday.

The University of North Carolina at Chapel Hill is scheduled to price $224 million in series 2009 general revenue bonds (Aa1/AA+/AA+) through Merrill Lynch.

The sale includes $109 million in series 2009A revenue bonds and $115 million in series 2009B Build America Bonds.

Proceeds will be used repay a portion of the university's outstanding commercial paper.

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