Market firms slightly during light trading day; University of Pittsburgh to sell $400 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, May 11 - Despite a light day for municipals trading action, the market did see some slight firming, said market insiders reached during the day.

"Not a lot going on today," noted one trader during the afternoon. "We're firmer by a touch, I'd say, especially out on the long end."

Another trader agreed.

"It's pretty quiet," the trader said about a calendar, which is noticeably thinner than in weeks past.

"I really have no idea," she said. "All of the new issues have gone well."

If there were issuers interested in trying the waters, the deals would most likely be well absorbed, she said.

The trend has been positive and "yields have been coming down," she said.

"Next week things should be busier," she said. "Fingers crossed."

U of Pittsburgh ahead

Coming up is a $400 million sale of series 2009A tax-exempt fixed-rate bonds from the University of Pittsburgh for the University of Pittsburgh Medical Center. The sale is scheduled for May 20 with a retail order period on May 18 and May 19.

The bonds will be sold on a negotiated basis with RBC Capital Markets Inc., BNY Mellon Capital Markets, PNC Capital Markets and J.P. Morgan Securities Inc. as the underwriters.

The bonds are due 2010 to 2024 with term bonds due 2029, 2034 and 2039.

Proceeds will be used to fund capital projects at the medical center and its subsidiary hospitals.

North Carolina's bonds

Heading up this week's slate of offerings, the North Carolina Capital Facilities Agency is scheduled to price $110 million in series 2009 revenue bonds Tuesday for Wake Forest University, according to a sales calendar.

The bonds (Aa3/AA/) will be sold through lead managers Wachovia Securities Inc. and BB&T Capital Markets Corp.

The bonds are due 2027 through 2039.

Proceeds will be used to refinance a line of credit with Wachovia Bank and to renovate the university's football stadium.

Wake Forest University is based in Winston-Salem, N.C.

Also on Tuesday, the Town of Braintree in Massachusetts is scheduled to price $122 million in series 2009 general obligation bonds, said a calendar of upcoming deals.

The bonds (Aa3/AA-/) will be sold through senior manager Barclays Capital Inc.

The bonds are due 2010 to 2029.

Proceeds will be used to pay for capital improvements.

Maine authority sale

On the horizon, the Maine Educational Loan Authority is expected to sell $210 million in series 2009A student loan revenue bonds, said a preliminary official statement.

The bonds (Aa2/AAA/) will be sold on a negotiated basis with RBC Capital Markets as the senior manager.

The sale includes $56.5 million in series 2009A-1 bonds, $73.5 million in series 2009A-2 bonds and $80 million in series 2009A-3 bonds.

The 2009A-1 bonds are due 2010 to 2022, the 2009A-2 bonds are due 2010 to 2027, and the 2009A-3 bonds are due 2039.

Proceeds will be used to refund the authority's series 1996, 1998, 2000, 2005 and 2007 bonds, cancel a 2008 line of credit and make a deposit to a capital reserve fund.

The authority is based in Portland, Maine.

Geisinger Authority deal

The Geisinger Authority of Pennsylvania is set to sell $115 million in series 2009A health system revenue bonds for Geisinger Health System, said a preliminary official statement.

The bonds (Aa2/AA/) will be sold through lead manager JPMorgan.

The bonds are due 2019 to 2023 with term bonds due 2037 and 2039.

Proceeds will be used to make loans to the Geisinger obligated group and affiliates as well as pay the purchase price of series 2007 bonds tendered for purchase by the owners.

Geisinger is based in Danville, Pa.

California Health

Also ahead, the California Health Facilities Financing Authority plans to issue $87.875 million in series 2009B-C revenue bonds on behalf of Adventist Healthcare, according to Joe DeAna, spokesman for the state treasurer.

The bonds are expected to price Friday.

A $30 million series B daily variable-rate tranche will be offered with a maturity date of Sept. 1, 2038. JPMorgan will act as underwriter for the negotiated bonds.

A $57.875 million tranche of series C revenue bonds will be offered with maturities from 2010 to 2021. Goldman Sachs & Co. will act as underwriter for the negotiated bonds.

Proceeds from the sale will be used to fund hospital projects.

The California Health Facilities Financing Authority is based in Sacramento, Calif.

ISAC serves up $50 million

The Illinois Student Assistance Commission announced plans to issue a $50 million series 2009 student loan revenue bond, according to a preliminary notice of sale.

William Blair & Co., Cabrera Capital Markets and Grigsby & Associates Inc. will act as underwriters for the negotiated deal.

The bond will mature on May 1, 2014.

Proceeds will be used to make college loans.

The commission is located in Deerfield, Ill.

Miami markets $51.055 million

Miami plans to issue $51.055 million in series 2009 limited ad valorem tax bonds (A3/A/A-), according to a preliminary offering statement.

Merrill Lynch & Co., JPMorgan, SunTrust Capital Markets Inc., Raymond James & Associates and Banc of America Securities LLC will act as underwriters for the negotiated deal.

Proceeds will be used to train and equip police, parks and utility officials.

Florida Housing

The Florida Housing Finance Corp. announced that it will offer a $50 million 2009 series I homeowner mortgage revenue non-alternative minimum tax bond, according to a preliminary offering statement.

RBC Capital Markets, Citigroup Global Markets Inc. and JPMorgan will act as underwriters for the negotiated deal.

The bonds will carry serial maturities from 2011 to 2019 as well as term bonds due in 2024, 2029, 2034 and 2040.

Proceeds from the sale will be used to finance home loans.

Florida Housing Finance is located in Tallahassee, Fla.

Secondary stays quiet

Moving to the secondary market, activity remained fairly quiet.

In slight trading activity, Mesa, Ariz.'s utility system revenue bonds were seen moving Monday. The 4.5% 2025 bonds were seen at 4.35%. The 6.375% 2033 bonds were seen at 6%.

The East Baton Rouge Sewerage Commission saw its 5.25% 2034 bonds trading near par Monday afternoon.

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