Long bonds firmer as new issues taper off; New York Liberty Development sells $2.59 billion

By Sheri Kasprzak

New York, Oct. 14 - Municipals finally got a break on Friday after enduring a week of softening, said market insiders. New-issue volume tapered substantially, giving the market a chance to breathe and absorb some of the week's offerings, said one trader.

"There's not a lot going on today, which is exactly what we needed. We just needed a break," he said.

"There's been so much coming in and not enough time to absorb everything."

Yields on 20-year bonds were down by 2 basis points, and yields on 15-year bonds were down 3 bps. Shorter maturities were largely unmoved.

Heading up primary action, the New York Liberty Development Corp. priced $2.594 billion of series 2011 multi-modal revenue bonds, said a pricing sheet.

The offering included $2.573 billion of series 2011A bonds and $20.465 million of series 2011B variable-rate bonds.

The 2011A bonds are due Dec. 1, 2049 and initially bear interest at 0.33%. The 2011B bonds are due Dec. 1, 2049 and initially bear interest at the weekly rate.

Goldman Sachs & Co. was the senior manager for the deal.

Proceeds will be used to construct five new skyscrapers, a retail center, a transportation hub, a performing arts center and the National September 11 Memorial and Museum at the World Trade Center site.

Cleveland Clinic bonds price

Elsewhere, the State of Ohio priced $195.705 million of series 2011A hospital revenue refunding bonds for the Cleveland Clinic Health System Obligated Group, said a pricing sheet.

The bonds (Aa2/AA-/) were sold through J.P. Morgan Securities LLC.

The bonds are due 2012 to 2025 with term bonds due in 2030 and 2032. The serial coupons range from 0.5% to 5%. The 2030 bonds have a 4.625% coupon and priced at 98.964. The 2032 bonds have a 5% coupon and priced at 101.24.

Proceeds will be used to prepay the obligated group's series 2003A hospital revenue bonds.

Indiana Finance sells debt

Also during the session, the Indiana Finance Authority sold $191.385 million of series 2011A state revolving fund program bonds, said a pricing sheet.

The bonds (Aaa/AAA/AAA) were sold through Goldman Sachs and Jefferies & Co. Inc.

The bonds are due 2012 to 2030 with 1% to 5% coupons.

Proceeds will be used to fund loan disbursements and refund the authority's series 2004B-C bonds.

Honolulu offers up bonds

In other pricing action, the City of Honolulu, Hawaii, priced $169.19 million of series 2011A wastewater system revenue bonds, said a pricing sheet.

The bonds (Aa2/AA/) were sold through Bank of America Merrill Lynch and Piper Jaffray & Co.

The bonds are due 2016 to 2031 with term bonds due in 2036, 2038 and 2041. The serial coupons range from 2% to 5%. The 2036 bonds have a split maturity with a 4.25% coupon priced at 99.239 and a 5.25% coupon priced at 109.51. The 2038 bonds have a 5% coupon and priced at 106.621. The 2041 bonds have 5% coupon and priced at 106.457.

Proceeds will be used to refund the city's series 2005A and 2006A-C wastewater system revenue bonds.

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