Munis end the day mostly unchanged; City of New York preps $1.83 billion sale of G.O. bonds

By Sheri Kasprzak

New York, Sept. 24 - The municipals market was mostly unmoved Thursday, said one trader, as billions in sales were reported for the coming week.

"It's really pretty quiet today," said the trader reached in the afternoon.

"No big movements anywhere, from what I can see."

Meanwhile, the news of the day came out of New York City. The city plans to sell $1.83 billion in general obligation bonds Wednesday.

Morgan Stanley & Co. Inc. will bring the deal to market.

The offering includes $930 million in series 2010A taxable G.O. bonds and $900 million in series 2010 tax-exempt G.O. bonds.

The 2010A bonds are due 2011 to 2025 with term bonds. The 2010B bonds are due 2010 to 2027, and the 2010C bonds are also due 2010 to 2027.

Proceeds will be used to fund capital expenditures.

Aurora sells $90 million

In primary action from Thursday, the City of Aurora in Colorado sold $90 million in series 2009 certificates of participation, said a pricing sheet.

The COPs (Aa3/AA/) were sold through senior manager RBC Capital Markets Corp.

The COPs are due 2016 to 2019 with coupons from 3% to 5%. Neither initial prices nor the yields were immediately available.

Proceeds will be used to retire the city's series 2008A variable-rate demand certificates and to refund its series 2005 certificates.

Eastern Illinois U. brings $84.93 million

Also on Thursday, the Board of Trustees of Eastern Illinois University priced Thursday $84.93 million in series 2009A energy conservation projects COPs (A2), said a pricing sheet.

The sale included $4.005 million in series 2009A-1 tax-exempt COPs and $80.925 million in series 2009A-2 Build America Bonds.

The 2009A-1 COPs are due 2013 to 2015 with coupons from 3.5% to 4.4%, all priced at par. The 2009A-2 bonds are due 2016 to 2024 with term bonds due 2029 and 2036. The coupons on the serials range from 4.7% to 6%, all priced at par. The 2029 bonds have a 6.2% coupon, priced at par, and the 2036 bonds have a 6.35% coupon, also priced at par.

Edward D. Jones & Co. LP and Barclays Capital Inc. were the senior managers.

Proceeds will be used to construct a renewable power center to replace the university's existing coal-fired heat and power facility as well as replace and upgrade other energy facilities to make them more environmentally friendly.

Eastern Illinois University is based in Charleston, Ill.

New York State Housing bonds price

In other pricing news, the New York City Housing Development Corp. priced Thursday $72.39 million in series 2009 revenue and refunding bonds, said a term sheet.

The bonds (Aa2/AA/) were sold on a negotiated basis with J.P. Morgan Securities Inc. as the senior manager.

The sale included series 2009F bonds and series 2009J bonds.

The 2009F bonds are due 2012 to 2019 with term bonds due 2024, 2029, 2034 and 2041. The serials have coupons from 1.95% to 3.55%. The 2024 bonds have a 4.25% coupon, the 2029 bonds have a 4.6% coupon, the 2034 bonds have a 4.75% coupon, and the 2041 bonds have a 4.85% coupon, all priced at par.

The 2009J bonds are due 2010 to 2019 with term bonds due 2024, 2029 and 2036. The serials have coupons from 0.7% to 3.55%, all priced at par. The 2024 bonds have a 4.25% coupon, the 2029 bonds have a 4.6% coupon, and the 2036 bonds have a 4.8% coupon, all priced at par.

Proceeds will be used to fund mortgage loans and refund existing debt.

New York State Thruway sale ahead

In other upcoming sales for the week ahead, the New York State Thruway Authority plans to price $521.685 million in series 2009 local highway and bridge service contract bonds on Wednesday, according to a preliminary official statement.

The bonds (/AA-/A+) will be sold on a negotiated basis with Citigroup Global Markets Inc. and Loop Capital Markets LLC.

The bonds are due 2011 to 2021.

Proceeds will be used to refund existing debt and to terminate a swap agreement.

Two sales planned for PeaceHealth

Also coming up next week, two offerings are planned for PeaceHealth System, said a sales calendar.

The Washington Health Care Facilities Authority plans to sell $98.64 million in series 2009 revenue bonds and Oregon Facilities Authority plans to price $103.595 million in series 2009A revenue refunding bonds for PeaceHealth on Wednesday.

Both bonds (/AA-/AA) will be sold through senior manager Goldman, Sachs & Co.

Proceeds from the Washington bonds will be used to repay taxable debt incurred to refund and redeem the Washington series 1993 bonds as well as refund the health system's series 2008B-D bonds.

Proceeds from the Oregon bonds will be used to refinance taxable debt issued by PeaceHealth and to redeem bonds used for capital expenditures and improvements.

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