Municipals end slightly weaker; Seattle plans $811.07 million municipal light and power bonds

By Sheri Kasprzak

New York, May 7 - Municipal yields lost the ground they gained earlier in the week after a Treasury selloff, market insiders reported.

"We're off by 2 or 3 basis points," said one trader.

"The losses aren't that big, but we're still weaker by a touch overall."

Meanwhile, the primary calendar was stacking up Friday. The action will be led by the City of Seattle's $811.065 million in series 2010 municipal light and power revenue bonds. That deal is scheduled for Thursday, according to a sales calendar.

The sale includes $207.74 million in series 2010A Build America Bonds, $590.05 million in series 2010B improvement and refunding bonds and $13.275 million in series 2010C taxable recovery zone economic development bonds.

The bonds (Aa2/AA-/) will be sold on a negotiated basis with Citigroup Global Markets Inc. as the lead manager.

The 2010A bonds are due 2017 to 2025 with term bonds due 2030 and 2040. The 2010B bonds are due 2011 to 2026, and the 2010C bonds are due 2040.

Proceeds will finance capital improvements and refund existing debt.

IDA of Glendale sale ahead

Also coming up during the week, the Industrial Development Authority of the City of Glendale, Ariz., plans to bring $157.21 million in series 2010 revenue bonds for Midwest University on Thursday, said a sales calendar.

The bonds (/A-/A) will be sold through RBC Capital Markets Corp.

The bonds are due 2011 to 2030 with term bonds due 2035 and 2040.

Proceeds will be used to construct and equip educational facilities at the university's Downers Grove, Ill., campus.

The authority assists educational and other entities with financing capital projects.

New York bond bank to sell

Also on Thursday, the State of New York Municipal Bond Bank Agency is prepared to bring to market $118.595 million in series 2010 recovery act bonds, according to a sales calendar.

The bonds will be sold through Jefferies & Co. and Goldman, Sachs & Co.

The sale includes $28.58 million in series 2010A-1 tax-exempt bonds, $37.545 million in series 2010A-2 federally taxable bonds, $27.81 million in series 2010B-1 tax-exempt bonds and $24.66 million in series 2010B-2 federally taxable bonds.

The 2010A-1 bonds are due 2011 to 2017, and the 2010A-2 bonds are due 2018 to 2025 with a term bond due 2035. The 2010B-1 bonds are due 2011 to 2020, and the 2010B-2 bonds are due 2020 to 2025.

Proceeds will be used to purchase local American Recovery and Reinvestment Act bonds.

The New York-based agency provides access to capital markets to finance special projects for municipalities throughout the state.

Stamford deal set

In other deals set for the week, the Connecticut Health and Educational Facilities Authority is expected to sell $104.56 million in series 2010-I revenue bonds for Stamford Hospital on Tuesday, according to a calendar of upcoming offerings.

The bonds (/A/) will be sold through senior manager Goldman Sachs.

The bonds are due 2011 to 2021 with term bonds due 2025 and 2030.

The hospital intends to use the proceeds granted it by the authority to finance and refinance renovations and additions to existing hospital facilities.

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