Municipal yields seen flat; University of California Medical Center plans $539 million deal

By Sheri Kasprzak

New York, Nov. 30 - Municipals were largely unmoved on Monday as the market got back down to business after the Thanksgiving holiday.

"It is pretty dead today," said one sellside source reached during the afternoon.

"We're looking mostly flat. The rest of the week has some good potential. Looks like a good supply for the upcoming week."

A trader noted that volume was pretty light.

"It's unchanged for the most part. Hardly anything is trading," the trader said.

Looking ahead, the Regents of the University of California Medical Center plans to bring to market $539 million in series 2009 revenue bonds Thursday, said a sales calendar. A retail order period will be conducted Wednesday.

The bonds will be sold on a negotiated basis with Barclays Capital Inc. as the senior manager.

The deal includes series 2009E revenue bonds and series 2009F taxable Build America Bonds. The precise breakdown was not available Monday.

Proceeds will be used to fund capital expenditures.

Massachusetts to bring $500 million

Coming up on Tuesday, the Commonwealth of Massachusetts is expected to price $500 million in series 2009E taxable Build America Bonds, said a sales calendar.

The bonds (Aa2/AA/AA) will be sold through senior manager Goldman, Sachs & Co.

The bonds are due 2039.

Proceeds will be used to reimburse the commonwealth for a variety of capital expenditures.

Tennessee deals ahead

Down South, the State of Tennessee plans to price $290 million in series 2009 general obligation bonds Wednesday, said a sales calendar. A retail order period will be held for the tax-exempt bonds.

The sale includes $235.955 million in series 2009C bonds and $54.045 million in series 2009D taxable G.O. bonds.

Barclays Capital is the senior manager for the bonds (Aa1/AA+/).

Proceeds will be used to fund capital expenses.

Also in Tennessee, the Tennessee State School Bond Authority plans to price on Thursday $177 million in series 2009 qualified school construction bonds, said a sales calendar.

The bonds (Aa3/AA/) will be sold through lead manager Barclays Capital.

Proceeds will be used to fund the construction of qualified schools within the authority.

Chicago BOE to price $254.24 million

Also coming up during the week, the Chicago Board of Education is gearing up to sell its previously announced $254.24 million in series 2009G unlimited tax G.O. bonds and qualified school construction bonds on Thursday, said a sales calendar.

The bonds (A1/AA/A+) will be sold through lead manager Goldman Sachs. The co-managers are M.R. Beal & Co. and Ramirez & Co. Inc.

Proceeds will be used to construct qualified schools in the district.

Also in Illinois, the Illinois Finance Authority plans to price $237.235 million in series 2010 revenue bonds for Advocate Health Care Network, said a preliminary official statement.

The offering includes $37 million in series 2010A bonds, $50 million in series 2010B bonds, $27.5 million in series 2010C bonds and $122.735 million in series 2010 D bonds.

Citigroup Global Markets Inc. is the senior manager.

The maturities have not yet been set.

Proceeds will be used to construct a patient tower at the BroMenn Regional Medical Center in Normal, Ill.

Pennsylvania Housing sale ahead

On Wednesday, the Pennsylvania Housing Finance Agency is expected to sell $250 million in series 2009-106 single family mortgage revenue bonds, said a sales calendar.

The bonds (Aa2/AA+/) will be sold through senior managers RBC Capital Markets Inc. and Barclays Capital.

The sale includes $14.645 million in series 2009-106A bonds, $85.355 million in series 2009-106B bonds and $150 million in series 2009-106C bonds.

Orange Health deal planned

The Orange County Health Facilities Authority of Florida is expected to sell $244.055 million in series 2009 hospital revenue bonds for Orlando Health Inc. on Thursday, said a sales calendar.

The bonds (A2/A/A) will be sold through lead manager Goldman Sachs.

The bonds are due 2010 to 2019 with a term bond due 2026.

Proceeds will be used to refund portions of the authority's series 1999D, 1999E, 2004, 2008D, 2008F and 2008G bonds as well as to pay costs to terminate interest rate hedge agreements on the refunded bonds.

Also in Florida, the Orlando Utilities Commission is set to price $130 million in series 2009C non-AMT revenue bonds on Wednesday, said a sales calendar.

The bonds (Aa1/AA/AA) will be sold through J.P. Morgan Securities Inc.

The bonds are due 2011 to 2017.

Proceeds will be used to fund utility infrastructure projects.

Alabama Public School bonds to price

Elsewhere, the Alabama Public School and College Authority is set to sell $145.88 million in series 2009D capital improvement pool qualified school construction bonds on Wednesday, said a sales calendar.

The bonds (Aa2/AA/AA) will be sold through senior manager Morgan Stanley & Co. Inc.

The bonds are due Dec. 15, 2026.

Proceeds will be loaned to qualified schools and colleges for school construction.

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