Municipals seen flat in light trading; Citizens Property Insurance gears up for $2 billion sale

By Sheri Kasprzak

New York, March 22 - Municipals were mostly unchanged to kick off the work week, with light weakness seen on the short end of the yield curve, traders reported.

"For very short-term bonds, yields are just a touch higher," said one trader.

"Other than that, it's flat. It's been a really quiet day. Not a lot of demand [for secondary]."

Another trader said, "Not much to report. Light trading. Mostly flat."

Amid the light trading activity, the State of California's various-purpose Build America Bonds were seen moving. The 7.3% 2039 bonds were seen at 7.426%.

Elsewhere, the City of Anchorage's series 2010C refunding bonds were trading. The 2% 2015s were seen at 1.598%.

Meanwhile, the week's primary action stacked up. The active week's primary calendar will be headlined by a $2 billion offering of series 2010 high-risk account senior secured bonds from Citizens Property Insurance Corp. of Florida on Tuesday.

The deal includes series 2010A-1, 2010A-2, 2010A-3 and 2010A-4 bonds.

J.P. Morgan Securities Inc. is the senior manager for the 2010A-1 and 2010A-2 bonds. Goldman, Sachs & Co. is the lead manager for the 2010A-3 and 2010A-4 bonds.

The Jacksonville, Fla.-based corporation plans to use the proceeds to reimburse its proceeds accounts for amounts disbursed to pay claims.

Los Angeles airport to price

In other primary offerings, the Department of Airports of the City of Los Angeles is set to price $897.78 million in series 2010A senior revenue bonds (Aa3/AA/AA) Wednesday, according to a sales calendar.

The bonds will be sold through Siebert Brandford Shank & Co. LLC.

Proceeds will be used to fund capital expenditures at Los Angeles Airport as well as refund existing commercial paper.

Puerto Rico power bonds ahead

Also ahead, the Puerto Rico Electric Power Authority is set to price $850 million in series XX power revenue bonds on Tuesday, said a sales calendar.

The bonds (A3/BBB+/BBB+) will be sold through JPMorgan and Citigroup Global Markets Inc.

Proceeds will be used to repay loans issued by private banks and the Government Development Bank for construction costs.

The issuer is based in San Juan, Puerto Rico.

MTA sale scheduled for Tuesday

Elsewhere, the Metropolitan Transportation Authority of New York City is scheduled to price $475 million in series 2010 revenue anticipation notes on Tuesday, said a calendar of upcoming deals.

The notes (//F1+), which are due Dec. 31, 2010, will be sold through senior managers Citigroup and M.R. Beal & Co.

Proceeds will be used to fund operating and maintenance expenses incurred by the authority.

University of Texas deal planned

Also on Tuesday, the Board of Regents of the University of Texas System plans to price its previously announced $373.27 million in series 2010B revenue finance system refunding bonds, said a sales calendar.

The bonds (Aaa/AAA/AAA) will be sold on a negotiated basis with RBC Capital Markets Inc. and Piper Jaffray & Co. as the senior managers.

The university system, which is based in Austin, Texas, plans to use the proceeds to refund existing debt.

University of Maryland to bring bonds

Looking to Wednesday, the University System of Maryland is expected to price $120 million in series 2010 auxiliary facility and tuition revenue bonds, according to a notice of sale and a preliminary official statement.

The bonds (Aa2/AA+/AA) will be sold competitively with Public Financial Management Inc. as the financial adviser.

The offering includes $38.985 million in series 2010A tax-exempt bonds and $81.015 million in series 2010B taxable Build America Bonds.

The 2010A bonds are due 2011 to 2018. The 2010B bonds are due 2019 to 2030.

Proceeds will be used to fund the expansion, construction, renovation and improvement of the university's dental school facilities, the construction of a new physical education complex, the construction of a new journalism building, the addition and renovation of a pharmacy hall and the renovation of a performing arts center.

The university system has its headquarters in Adelphi, Md.

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