Billions from transportation issuers expected; municipals stay unmoved in light trading action

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, July 31 - Municipal bonds barely moved during the session, a senior trader said, but they "got more attractive today" as "Treasuries ran up."

Generally, "I didn't see anything today I didn't see all week," he said.

The summer took its toll on volumes at the end of the month, he said.

"There's still a lot of demand out there," he added, noting that the market has been very range-bound.

"A lot of bullish people" are in the market, which walks into a new week with a calendar full of major new issues.

The Metropolitan Washington Airports Authority and the North Texas Tollway Authority are bringing deals valued at over $2 billion combined.

"People are prepared for the supply," he said.

Another trader said he saw very little going on during the quiet summer session.

"It's been really quiet," he noted. "Mostly unmoved, from what I've seen."

Metro Washington bonds to take off

The Metropolitan Washington Airports Authority in the District of Columbia will sell $1.186 billion in series 2009 Dulles Toll Road revenue bonds in two tranches (Baa1/BBB+/) during the week of Aug. 3, according to a calendar of upcoming sales.

A $826.95 million tax-exempt revenue and Build America Bond issue will be managed by Citigroup Global Markets Inc. and will price Tuesday.

A $359.53 million second senior lien issue of revenue and Build America Bonds will be sold via Morgan Stanley & Co. Inc. Wednesday.

Proceeds will be used for capital improvements to the Dulles Toll Road.

Maryland to sell G.O.s

On Monday, the State of Maryland plans to sell $485 million in series 2009 state and local facilities loan general obligation bonds (Aaa/AAA/AAA).

The bonds will be sold through lead manager Citigroup.

Proceeds will fund the acquisition and construction of state facilities as well as grants.

Another big sale on Monday comes from the North Texas Tollway Authority. The $424.62 million issue of series 2009A system first-tier tax-exempt current interest bonds (A2/A-/) is one of two large sales from the authority that total more than $1 billion. Morgan Stanley will sell the bonds, which are due 2010 to 2013 with term bonds due 2024, 2029 and 2039.

The authority comes to market on Tuesday with an $810.395 million sale of series 2009B system first-tier taxable current interest Build America Bonds. Goldman, Sachs & Co. is the lead manager for these bonds, which are due 2049.

Proceeds from both issues will be used to refund existing debt and improve portions of the tollway system.

In other transportation bond news, the Metropolitan Atlanta Rapid Transit Authority is set to sell $225 million in series 2009 sales tax revenue bonds (Aa3/AAA/) on Monday.

Merrill Lynch & Co. Inc. is the lead manager.

Proceeds will be used for transit system improvements.

Bexar hunts for investors

Bexar County Hospital District, Texas, will sell two tranches worth $280.575 million of taxable and tax-exempt certificates of obligation on Tuesday, according to a preliminary offering statement.

The district will sell $71.635 million of series 2009A certificates of obligation and $208.94 million of series 2009B Build America Bonds.

The series 2009A bonds will carry serial maturities from 2010 to 2023. The series 2009B bonds will carry serial maturities from 2024 to 2039.

Siebert Brandford Shank & Co. LLC and Merrill Lynch Banc of America Securities LLC will act as lead underwriters for the negotiated deal.

Proceeds will be used for the improvement and acquisition of buildings and equipment.

The Bexar County Hospital District is located in San Antonio.

FYI bond sale

FYI Properties in Washington State will sell $298.795 million 2009 state of Washington district project lease revenue bonds (/AA/) on Tuesday, according to a calendar of upcoming sales.

The bonds will carry serial maturities from 2012 to 2029 and term bonds due 2034 and 2039.

Barclays Capital Inc. will act as underwriter for the negotiated deal.

Bonds by Riverside

Riverside, Calif., will sell $240 million sewer revenue bonds on Thursday, according to a calendar of upcoming sales.

Wells Fargo Brokerage Services LLC will act as underwriter for the negotiated deal.

Proceeds from the sale will be used to fund improvements to the city's sewer system.

Secondary quiet in Friday trading

Moving to the secondary market, traders said activity was fairly light with a mostly unchanged tone.

Among the light trades was the City of Philadelphia's recently priced refunding bonds. The 5.125% 2025 bonds were seen at 4.955%. The 5% 2026 bonds were trading at par, as were the 5% 2024s.

In other news, the Massachusetts State Water Pollution Abatement Trust's recently priced series 2009A revolving fund bonds were seen moving. The 3% 2019 bonds were seen Friday afternoon at 2.98%.

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