Puerto Rico Sales Tax Financing, Illinois offerings top negotiated calendar for week ahead

By Sheri Kasprzak

New York, Jan. 22 - Municipals were mixed to round out the week with some strength seen on the short end of the curve and some slight weakness seen long.

"I'd call it mixed," said one trader reached Friday afternoon.

"Yields after about 20 or 30 years are up, but it's not that bad on the short end of the curve. Stocks have been crazy the past couple of days, and I think Treasuries are getting hit, too, and we're sort of getting caught up in some of that weakness."

Meanwhile, the coming week's offerings were stacking up Friday. The deal of the week comes from the Puerto Rico Sales Tax Financing Corp. The corporation will bring to market $1.4 billion in 2010A first subordinate sales tax revenue bonds on Wednesday, said a calendar of upcoming deals.

The bonds (A2/A+/A) will be sold on a negotiated basis with Citigroup Global Markets Inc. and Bank of America Merrill Lynch as the senior managers.

The sale includes current interest bonds, capital appreciation bonds and convertible capital appreciation bonds.

The current interest bonds are due 2015 to 2030 with term bonds due 2039 and 2042. The capital appreciation bonds are due 2031 to 2037. The convertible capital appreciation bonds are due 2029.

Proceeds will be used to fund capital projects.

Illinois' $1 billion sale planned

Also coming up, the State of Illinois is scheduled to price $1 billion in series 2010-1 taxable general obligation Build America Bonds Thursday, said a sales calendar.

Barclays Capital Inc. is the bookrunner for the bonds (A2/A+/A).

The bonds are due 2011 to 2020 with term bonds due 2022 and 2035.

Proceeds will be used to fund capital facilities and infrastructure projects.

New York muni water sale ahead

In other upcoming deals, the New York City Municipal Water Authority is scheduled on Tuesday to price $400 million in series 2010DD second general resolution revenue bonds, said a sales calendar.

The bonds (//AA) will be sold on a negotiated basis with Ramirez & Co. Inc. as the senior manager.

Proceeds will be used to fund the authority's capital improvement program.

Southern California power bonds to price

On the left coast, the Southern California Public Power Authority plans to bring to market $235.915 million in series 2010-1 Milford Wind Corridor Phase I project revenue bonds on Thursday, said a sales calendar.

The bonds (A1/AA-/) will be priced through senior manager Barclays.

The bonds are due 2011 to 2030.

Proceeds will be used to fund the prepayment of a supply of electricity from the Milford Wind Corridor.

The authority is based in Pasadena, Calif.

Virginia housing bonds to price

On Thursday, the Virginia Housing Development Authority plans to bring to market $107.33 million in series 2010A non-AMT mortgage bonds, said a calendar of upcoming deals.

The bonds (Aa1/AA+/) will be sold on a negotiated basis with Morgan Keegan & Co. Inc. as the lead manager.

The bonds are due 2011 to 2021.

Proceeds will be used to fund mortgage loans.

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