Municipals unchanged in light session; Ohio Water Development preps $363.85 million bond sale

By Sheri Kasprzak

New York, Jan. 11 - Municipal yields were mostly unmoved on Monday in a light day for trading action, said market insiders. Meanwhile, the market is preparing for another fairly large primary calendar.

"It's been quiet," noted one trader reached in the afternoon.

"I'd call it unchanged. There's some activity here and there, but it's been really slow for most of the day."

Meanwhile, the week ahead is expected to be loaded with substantial offerings, including a $900 million competitive sale from the Commonwealth of Pennsylvania, according to a market source.

Someone familiar with the sale said the commonwealth is scheduled to bring about $900 million in bonds competitively on Wednesday. The full terms of the sale were not immediately available Monday.

Also coming up during the week, the City of Chicago is set to sell $773 million in taxable project general obligation bonds through Siebert Brandford Shank & Co. LLC.

Ohio Water Development bonds ahead

Looking to Tuesday's pricing calendar, the Ohio Water Development Authority is set to bring $363.845 million in series 2010 water pollution loan fund revenue bonds (Aaa/AAA/) through Morgan Stanley & Co. Inc.

The sale includes $321.705 million in series 2010A tax-exempt bonds and $42.14 million in series 2010B Build America Bonds.

The 2010A bonds are due 2010 to 2027, and the 2010B bonds are due 2030.

Proceeds will be used to fund loans for pollution control projects throughout the state.

University of Michigan to sell $163 million

Also on Tuesday, the Regents of the University of Michigan is expected to price $163.105 million in series 2010 general revenue bonds (Aaa/AAA/) through Barclays Capital Inc.

The offering includes $125.275 million in series 2010A taxable Build America Bonds and $37.83 million in series 2010B tax-exempt bonds.

The 2010A bonds are due 2030 and 2040, and the 2010B bonds are due 2023 to 2027.

Proceeds will be used to replace the C.S. Mott Children's and Women's Hospital and expand the university's eye center.

Virginia Small Business plans Sentara Health deal

Out on the horizon, the Virginia Small Business Financing Authority is expected to bring to market $300 million in series 2010 health care facilities revenue and refunding bonds for Sentara Healthcare, said a preliminary official statement.

The bonds will be sold through lead manager Citigroup Global Markets Inc.

Proceeds will be used to finance or refinance the construction, development, acquisition and equipment of the Princess Anne Hospital, which will be located in Virginia Beach, as well as the construction of a three-story addition to the Sentara Obici Hospital in Suffolk, Va. The rest will be used to acquire the assets of Potomac Hospital Corp. in Prince William, Va.

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