Municipals end Monday unmoved ahead of large calendar of deals; Houston set to price two deals

By Sheri Kasprzak

New York, June 6 - Municipal yields were mostly flat on Monday after a quiet session for both the primary and secondary markets, insiders reported. Even so, primary activity is expected to pick up in the week ahead.

With little activity to move the market, traders reported that yields were flat, but they noted that the upcoming calendar of primary deals will have a positive impact on the market.

"Given the demand we've seen, yields will most likely benefit from more supply," said one trader.

"We've stagnated over the past week because of Memorial Day and a drop in supply. Things are picking back up this week. It's probably going to stay active all summer."

The weekly calendar will feature $5.1 billion of negotiated offerings and $1.3 billion of competitive sales, said Tom Kozlik, municipal credit analyst with Janney Montgomery Scott LLC.

Houston plans two

Looking ahead, the City of Houston is gearing up to offer two deals. A $450 million sale of series 2011D first-lien combined utility system revenue bonds is scheduled to price during the coming week.

The bonds (Aa2/AA/) will be sold through Bank of America Merrill Lynch, and proceeds will be used to extend, construct, improve and repair the city's utility systems as well as to refund its series B commercial paper notes.

Out on the horizon, the city plans to competitive sell $220 million of series 2011 tax and revenue anticipation notes on June 15.

First Southwest Co. and TKG & Associates LLC are the financial advisers.

The notes (/SP-1+/F1+) are due June 29, 2012.

Proceeds will be used to finance capital expenditures for the coming fiscal year ahead of the collection of taxes and revenues.

OhioHealth to sell price

Also coming up during the week ahead, Franklin County of Ohio plans to sell $316.7 million of series 2011 hospital facilities revenue and refunding bonds for OhioHealth Corp.

The offering includes $130 million of series 2011A revenue bonds, $62.23 million of series 2011B refunding bonds, $62.235 million of series 2011C refunding bonds and $62.235 million of series 2011D refunding bonds.

The bonds will be sold through Barclays Capital Inc.

Proceeds will be used to finance or refinance the construction, acquisition, equipment and improvement of existing health-care facilities and to refund OhioHealth's series 2006 bonds.

Metro Boston parking deal set

Among the other upcoming deals, Metropolitan Boston Transit Parking Corp. is set to price $304.23 million of series 2011 systemwide senior lien parking revenue bonds (A1/A+/) through Citigroup Global Markets Inc.

The bonds are due 2022 to 2031 with term bonds due in 2036 and 2041.

Proceeds will be used to refund existing corporate debt.

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