Nevada Department of Business plans $100 million; Michigan Building Authority to price $96.5 million

By Sheri Kasprzak

New York, Dec. 17 - Even though market insiders said new issue action is relatively quiet this week, a few sizable deals are coming up, including an issue of Nevada Department of Business and Industry variable-rate demand revenue bonds.

The $100 million in revenue bonds are set to price Thursday.

The Nevada bonds were rated Aa2 on Monday by Moody's Investors Service.

UBS Securities LLC is the lead manager.

Also set to price on Thursday is a $96.5 million issue of multi-modal revenue bonds, series I bonds from the Michigan State Building Authority.

Moody's rated the Michigan Building Authority bonds Aaa on Monday.

JPMorgan Chase Bank Securities is the lead manager for those bonds.

Indianapolis bonds set to price

Two bonds out of Indianapolis were in the headlines Monday with $283 million in Indianapolis Bond Bank notes set to price Tuesday and $110 million in Indianapolis Bond Bank Waterworks bonds expected to price Monday.

The $283 million issue of notes includes $109 million in notes due July 2008 and $174 million in notes due January 2009.

The bond bank notes are expected to settle Dec. 27.

The waterworks bonds will be sold as serials due from 2009 to 2038 and Bear, Stearns & Co. is the lead manager for the issue.

Even though the notes and bonds out of Indianapolis are fairly large issues, not much else is going on this week, market insiders observed.

"Not a lot to report," said one market insider when asked about new issues coming up this week. "Some smallish stuff should be pricing later on this week, but it's looking pretty quiet."

The relative quiet was no surprise for another sell-side source.

"It's close to the holidays, it's getting to the end of the year, so you're not going to see a heck of a lot of stuff for the next couple of weeks," he said. "Next year I feel will be if not more than this year's issuance, then at least comparable."

Asked about his predictions for 2008, the sell-sider said he feels the muni market will continue to see lots of general obligation bonds.

"We've seen tons of them this year and I think it's a trend that will continue," he said.

Secondary market quiet as well

Looking to the secondary market, trading remained fairly quiet, traders said.

"I'm not seeing a whole lot," said one trader. "Mostly small retail things here and there. I haven't really seen a lot of big, institutional trades in a while."

Another trader said she hadn't seen many muni trades at all Monday.

"It's just been really quiet here," she said.

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