Munis little changed in light action; Brooklyn Arena Local Development to sell $500 million

By Sheri Kasprzak

New York, Dec. 14 - Municipal yields were mostly flat on Monday in light action ahead of a fairly active day for primary on Tuesday.

"It really is quiet today," said one trader reached in the afternoon.

"Yields are unmoved. We expect it to be a pretty quiet week, especially on the secondary side. It will probably be slow for the rest of the year, such as it is."

One sellside source told Prospect News that Tuesday's primary action will likely be the biggest push for new money deals for the whole week.

"After Tuesday, it gets really, really slow," he said.

"That's going to be the case pretty much through the end of the year. The holidays are really here. Hanukkah is here, Christmas is next week, and no one's doing anything until the beginning of next year."

Amid the light trading activity, the Oregon Facilities Authority's bonds sold for Legacy Health were seen trading Monday. The 4.25% 2019 bonds were seen near par. The 4.375% 2020s were also trading near par.

Elsewhere, the City of New York's recently priced series 2009D bonds were moving. The 6.385% 2029 bonds were seen at 6.023%.

Brooklyn Arena bonds ahead

Looking to Tuesday's upcoming offerings, the Brooklyn Arena Local Development Corp. of New York is gearing up to price $500 million in series 2009 pilot revenue bonds through Goldman, Sachs & Co.

The bonds (Baa3/BBB/) will be used to fund the Barclays Center project.

Also in the Northeast, the State of Connecticut plans to bring $450 million in series 2009B taxable general obligation bonds on Tuesday. The bonds will be sold through lead manager Morgan Stanley & Co. Inc. and are due 2020 to 2029.

Proceeds will be used to fund capital needs.

Partners Health sale ahead

Also coming up on Tuesday, the Partners Health Care System Inc. of Massachusetts plans to price $350 million in series 2009J health-care system revenue bonds (Aa2/AA/AA) through J.P. Morgan Securities Inc.

The bonds are due 2039.

Proceeds will fund improvements to the health-care system, which is based in Boston.

Also in the health-care sector, St. Louis Park, Minn., is expected to bring $191.66 million in series 2009 health-care facilities revenue refunding bonds for Park Nicollet Health Services on Tuesday.

The bonds (/A/) will be sold through Morgan Stanley and Wells Fargo Securities Inc.

Proceeds will be used to refund the health system's series 2008A-B bonds as well as terminate a swap agreement connected to those bonds.

Port of Houston sale talked

Elsewhere, the Port Commission of the Port of Houston Authority plans to discuss the sale of up to $234.63 million of series 2010 unlimited tax refunding bonds during its meeting Tuesday, said a statement from the authority.

Proceeds from the deal will be used to refund the authority's series 1993 and 1999 bonds.

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