Muni bids strong on short end; North Carolina University at Chapel Hill sells $210.54 million

By Cristal Cody

Tupelo, Miss., Nov. 25 - Municipals saw a rise in action early Wednesday just before the Thanksgiving Day holiday break.

"There was some pretty good activity this morning for a holiday eve," one market observer told Prospect News on Wednesday.

"The short end continues to be bid strong. It may be a case of clients taking advantage of what is known as the roll," the source said of when two-year paper becomes one-year paper. "This happens every year when January comes around."

Meanwhile, one new sale from the University of North Carolina at Chapel Hill was reported on Wednesday.

The university priced $210.54 million in general revenue bonds, according to an official statement.

The sale included $97.735 million series 2009A bonds, which priced with 3% to 5% coupons to yield 0.45% to 4.16%.

The university also sold $112.805 million series 2009B term bonds due 2039 with a 5.757% coupon.

The bonds (Aa1/AA+/AA+) priced through a negotiated sale directed by senior manager Merrill Lynch & Co.

The proceeds will be used to finance or refinance university capital projects.

Tennessee Housing to sell

In other deals, the Tennessee Housing Development Agency plans to sell $400 million in housing finance program bonds.

The sale includes $40 million in series 2009A1 bonds, $60 million in series 2009A2 bonds and $300 million in series 2009B bonds, according to a preliminary official statement and placement memorandum.

The agency plans to privately place the series 2009A2 and 2009B bonds, according to the statement.

The series 2009A1 bonds will include $24.335 million in serial bonds due 2011 to 2021 and $15.665 million in term bonds due 2024 and 2027.

The series 2009A2 bonds are due 2040, and the series 2009B bonds are due 2041.

Morgan Keegan & Co., Inc. will be the senior manager of the negotiated sale.

The proceeds will be used for fund deposits.

Piedmont Power plans revenue bonds

Also ahead, the Piedmont Municipal Power Agency in South Carolina expects to sell $217.17 million in electric revenue bonds, according to a preliminary official statement.

The sale includes $190.485 million in series 2009A electric revenue refunding bonds and $26.685 million in series 2009B electric revenue bonds.

The series 2009A bond sale includes $13.21 million in series 2009A1 bonds due 2015, $20.22 million in series 2009A2 bonds due 2015, $63.515 million in series 2009A3 bonds due 2015 through 2018 and $93.54 million in series 2009A4 bonds due 2018 through 2021.

The series 2009B Build America Bonds are due 2034.

Goldman, Sachs & Co. will be the senior manager of the negotiated sale.

The proceeds will be used to refund outstanding bonds and pay for project costs.

L.A. to sell $117.35 million

Coming up, the City of Los Angeles, Calif., expects to price $117.35 million in solid waste resources revenue bonds, according to a preliminary official statement.

The sale includes $67.435 million in series 2009A bonds with serial maturities from 2010 through 2022 and $49.915 million in series 2009B bonds with serial maturities from 2010 through 2020.

The bonds (Aa3/AA/AA-) will be sold through a negotiated sale directed by senior manager Stone & Youngberg LLC and co-manager Cabrera Capital Markets, LLC.

The proceeds will be used to refund the outstanding series 2001A bonds and to finance the acquisition of solid waste trucks, equipment and automated recycling containers.

Nassau County to price TANs

Elsewhere in the week ahead, the County of Nassau in New York intends to sell $150 million in tax anticipation notes, according to a preliminary official statement.

The notes (MIG1/SP-1+/F1+) are expected to price through a competitive sale on Dec. 3, according to the notice of sale.

The sale includes $90 million in series 2009A notes due Sept. 15, 2010 and $60 million in series 2009B notes due Oct. 15, 2010.

Public Financial Management, Inc. is the county's financial adviser.

The proceeds will be used to meet a cash flow deficit.

The county seat is located in Mineola, N.Y.

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