Municipals finish quiet day flat; North Carolina plans $487.7 million G.O. sale for Wednesday

By Sheri Kasprzak

New York, March 29 - Municipal yields were largely flat on Monday to kick off a week shortened by the Good Friday holiday. Primary activity stacked up, but the volume will be lighter than in recent weeks.

"With a holiday at the end of the week, it's probably going to be pretty quiet," said one sellsider reached during the day.

"Typically, things get quiet when you have a short week, and that seems to be the case this week."

One trader reached Monday said yields were basically unmoved across the yield curve.

"Quiet today," he said.

"Not a lot trading. Yields look pretty flat."

Amid the light trading activity, the District of Columbia's recently priced series 2010A income tax secured bonds were seen moving. The 5% 2014 bonds were seen at 2%.

Meanwhile, the week's primary action will be led by a $487.7 million sale of series 2010A general obligation public improvement bonds from the State of North Carolina. The state is scheduled to price the bonds on Wednesday, according to a notice of sale.

The bonds (Aaa/AAA/AAA), which are due 2011 to 2030, will be sold competitively.

The state plans to use the proceeds to finance capital projects.

Illinois G.O. sale planned

Coming up on Thursday, the State of Illinois is expected to bring to market $250 million in series of April 2010 G.O. bonds, said a notice of sale.

The bonds (A2/A+/A) will be sold competitively. The financial adviser is Public Resources Advisory Group.

The bonds are due March 31, 2011.

Proceeds will be used to fund capital projects throughout the state.

Detroit schools sale ahead

Looking to Wednesday's pricing action, the Michigan Municipal Bond Authority is set to price $255 million in series 2010B state aid revenue notes, said a sales calendar. The notes will be issued on behalf of the School District of the City of Detroit.

The notes (/SP-1/) will be sold through senior managers J.P. Morgan Securities Inc. and Loop Capital Markets LLC.

The notes are due March 21, 2011.

Proceeds will be used to purchase a note to be issued to the City of Detroit's school district.

Based in Lansing, the authority provides an alternative source of funding to local governments and school districts in the state.

PANYNJ deal coming Wednesday

Also on Wednesday, the Port Authority of New York and New Jersey is set to bring to market $116.84 million in 162nd series consolidated bonds, according to a notice of sale.

The bonds (Aa2) are due 2010 to 2014 and will be offered competitively.

Proceeds from the sale will be used to refund the authority's 118th series consolidated bonds.

The authority, based in New York, constructs, operates and maintains infrastructure required for trade and transportation networks between New York and New Jersey.

Bethesda Healthcare plans $130 million

Looking out on the horizon, the Palm Beach County Health Facilities Authority of Florida is expected to price $130 million in series 2010A health facilities revenue bonds for Bethesda Healthcare System, Inc., said a preliminary official statement.

The bonds (Aa3/AAA/) will be sold on a negotiated basis. Barclays Capital Inc. and BB&T Capital Markets are the lead managers.

Proceeds will be used to refund existing bonds.

Based in West Palm Beach, Fla., the authority provides financing for health-care providers in the county. Bethesda Healthcare is located in Boynton Beach, Fla.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.