Munis end unchanged; New York's Metropolitan Transportation Authority to bring $650 million

By Sheri Kasprzak

New York, Jan. 29 - Municipals finally caught a break from losses experienced earlier in the week. Yields closed out the week flat, even on the long end, which has suffered the most.

"It's been very quiet," one market insider noted. "Not much is trading at all. It feels like Friday."

Even though trading activity was light, movement was seen for the Puerto Rico Sales Tax Financing Corp.'s series 2010A first subordinated bonds, which priced Wednesday. The 5.75% 2037 bonds were trading at 5.092%. The bonds originally priced at par. The 4.5% 2021s were trading near par. The bonds also priced at par.

Elsewhere in secondary, Asante Health of Oregon's series 2010 revenue refunding bonds priced Thursday, and the 4.5% 2024 bonds were seen in secondary at 4.509%. The 5% 2035s were trading at 5.015%.

Meanwhile, the market is anticipating a slightly smaller primary calendar for the coming week. The activity will be led by a $650 million sale of series 2010B revenue bonds from the Metropolitan Transportation Authority in New York on Wednesday.

The deal includes $550 million in series 2010B-1 Build America Bonds and $100 million in series 2010B-2 tax-exempt bonds.

Barclays Capital Inc. is the senior manager.

A retail order period is scheduled for Tuesday.

Proceeds will be used to fund transportation projects throughout the city.

Massachusetts education bonds ahead

Also coming up during the week, the Massachusetts Educational Financing Authority plans to bring $407 million in series 2010 education loan revenue bonds on Wednesday, according to a calendar of upcoming deals.

The bonds (/AA/A) will be sold on a negotiated basis with Morgan Stanley & Co. Inc. as the senior manager.

The 2010A bonds are due 2012 to 2020 with term bonds due 2024 and 2032. The 2010B bonds are due 2012 to 2020 with term bonds due 2024 and 2032, and the 2010C bonds are due 2012 to 2020 with term bonds due 2024 and 2032.

Proceeds will be used to fund educational loans.

New York Environmental bonds to price

On Tuesday, the New York State Environmental Facilities Corp. plans to price $327.125 million in series 2010 state clean water and drinking water revolving fund revenue bonds, said a sales calendar. A retail order period is scheduled for Monday.

The bonds will be sold on a negotiated basis with Siebert Brandford Shank & Co. as the senior manager.

The offering includes $141.145 million in series 2010A bonds and $185.98 million in series 2010B Build America Bonds.

Proceeds will be used to fund clean water and drinking water projects throughout the state.

Provena Health sale planned

Coming up Thursday, the Illinois Finance Authority plans to price $126 million in series 2010 revenue bonds (Baa1/BBB/), said a sales calendar. The bonds will be sold for Provena Health.

The sale includes $115.395 million in series 2010A bonds and $10.605 million in series 2010B bonds.

The bonds will be sold through senior manager Goldman, Sachs & Co.

The 2010B bonds are due 2034, but the maturities for the 2010A bonds were not immediately available.

Proceeds will be used to reimburse Provena for the costs associated with constructing, acquiring, equipping and renovating Provena facilities.

Provena Health is based in Mokena, Ill.

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