Indiana Finance Authority to bring $271 million; Delaware to sell $225 million G.O.s competitively

By Sheri Kasprzak

New York, Jan. 2 - Now that the champagne has been consumed and the New Year rung in, 2009 is already looking to be an active one for the municipals market. Friday ushered in a new crop of upcoming offerings for January - including some deals that were put off in 2008.

"It's really hard to say how we're going to compare at this point," one sellside source said when asked how he feels volume will compare this year.

"I know that we have quite a bit going on this month [January] because a lot of stuff was taken off the market late in 2008. I'm pretty optimistic, though. I think it's going to be a good year."

Heading up the slate of new deals is a $271.275 million offering of series 2009A refunding revenue bonds (Aaa/VMIG 1) that the Indiana Finance Authority is planning to sell on behalf of Duke Energy Indiana, Inc.

A sellsider familiar with the deal said the pricing is expected to occur Thursday and the bonds will be sold on a negotiated basis.

The deal includes $44.025 million in series 2009A-1 bonds, $23 million in series 2009A-2 bonds, $77.125 million in series 2009A-3 bonds, $77.125 million in series 2009A-4 bonds and $50 million in series 2009A-5 bonds.

KeyBanc Capital Markets is the lead manager for the 2009A-1 and 2009A-3 bonds, Morgan Stanley is lead for the 2009A-2 bonds, Banc of America Securities LLC is the lead for the 2009A-4 bonds, and Wells Fargo Brokerage Services is lead for the series 2009A-5 bonds.

The bonds initially bear interest at the weekly rate mode.

Proceeds will be used to refund existing obligations.

Delaware's competitive deal

Also coming up, the State of Delaware is getting ready to price $225 million in series 2009 general obligation bonds on Jan. 14, said a notice of sale released Friday.

The bonds (Aaa/AAA/AAA) will be sold on a competitive basis with Public Financial Management Inc. as the financial adviser.

The bonds are due 2010 to 2029.

Proceeds will be used for capital projects.

OSU's delayed deal

Looking ahead this month, Ohio State University plans to price its previously planned $230.89 million sale of series 2008A general receipts bonds, said a preliminary official statement.

The bonds (/AA/) had originally been scheduled to price in October, but the sale was delayed due to poor market conditions.

The bonds will be sold on a negotiated basis with Morgan Stanley as the senior manager.

The bonds are due 2009 to 2028.

Proceeds will be used to pay for upgrades and renovations to utilities, roads and facilities, including the Ross Heart Hospital, as well as for the acquisition of an airport hangar.

Also coming up, the Washington Health Care Facilities Authority announced plans to sell $90 million in series 2008 revenue bonds for the Seattle Cancer Care Alliance.

The bonds will be offered on a negotiated basis with Merrill Lynch & Co. and Banc of America Securities LLC as the senior managers, according to a preliminary official statement released Friday.

The bonds are due 2009 to 2014 with term bonds due 2018, 2028 and 2038.

Proceeds will be used to construct, renovate, equip and remodel facilities owned by Seattle Cancer Care. The remainder will be used to refund the corporation's series 2001 and 2005 bonds as well as make a deposit to a debt service reserve fund.

Secondary remains flat

Moving to light action in the secondary market, traders said the tone was virtually unchanged Friday to round out a very quiet, short week.

"There's barely anything trading out there today," said one New York-based trader reached Friday afternoon.

"We're looking pretty flat with really light trading."

Looking at specific trades, the Wisconsin State Health & Educational Facilities Authority's series 2008 revenue bonds sold for Froedtert & Community Health were seen in play.

The 5.375% 2030s were seen trading at 3.101%. The bonds originally priced in late 2008.

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