Municipals end mostly flat; North Carolina Baptist Hospital brings $332.8 million of bonds

By Sheri Kasprzak

New York, Feb. 17 - Municipal yields were seen little changed on Wednesday as market insiders held on to the long weekend just a little bit longer, market insiders said.

"We bond folks love our long weekends," one trader said.

"There's really not much going on today. Yields are not moving by that much. It's been very quiet. Lots of people are still out."

Meanwhile, the North Carolina Medical Commission priced $332.8 million in series 2010 hospital revenue refunding bonds for North Carolina Baptist Hospital, said a pricing sheet.

The bonds (Aa3/AA-/) were sold through Morgan Stanley & Co. Inc. and BB&T Capital Markets.

The bonds are due 2011 to 2022 with term bonds due 2025, 2027, 2029, 2030 and 2034. Serial coupons range from 2% to 5%, and term coupons range from 4.375% to 5.25%.

Proceeds will be used to refund existing North Carolina Baptist Hospital debt.

The hospital is located in Winston-Salem, N.C.

Los Angeles USD to sell

Looking ahead to Thursday's offerings, the Los Angeles Unified School District is set to bring $1.746 billion in series 2010 general obligation bonds (Aa3/AA-/).

The bonds will be sold through senior managers Citigroup Global Markets Inc., Barclays Capital Inc., Goldman, Sachs & Co. and Morgan Stanley.

Proceeds from the deal will be used to construct new schools, repair and renovate existing schools, improve technology systems, purchase library books and refund debt.

Illinois plans $1.44 billion

In addition, another billion-dollar deal comes from the State of Illinois. The state plans to bring $1.435 billion in series 2010 G.O. refunding bonds through Morgan Stanley and Citigroup on Thursday.

The bonds are due 2011 to 2025.

Proceeds will be used to refund all or a portion of maturities of outstanding G.O. bonds as well as purchase U.S. Treasury obligations to provide for the refunding.

Indianapolis bond bank sale ahead

Out on the horizon, the Indianapolis Local Public Improvement Bond Bank is set to sell $466.66 million in series 2010B bonds, said a preliminary official statement.

The bonds (Aa2/AA+/AA) will be sold on a negotiated basis with Citigroup as the senior manager for both series. The co-lead for the 2010B-2 bonds is J.P. Morgan Securities Inc.

The deal includes $91.035 million in series 2010B-1 bonds and $375.625 million in series 2010B-2 Build America Bonds.

The 2010B-1 bonds are due 2013 to 2022. The 2010B-2 bonds are due 2030 and 2040.

Proceeds will be used to fund the construction of a replacement hospital for Wishard Memorial Hospital.

Dasny bonds to price

Coming up, the Dormitory Authority of the State of New York is expected to bring to market $222.74 million in series 2010A mental health services revenue bonds, said a preliminary official statement.

The bonds (/AA-/A+) will be sold on a negotiated basis with Ramirez & Co. Inc. and JPMorgan as the senior managers.

Proceeds will be used to refund existing debt.

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