Munis hold steady as market preps for billions in new deals; Phoenix to sell $480.43 million

By Sheri Kasprzak

New York, Oct. 5 - The municipals market rounded out Monday mostly unmoved, a trader reported. Meanwhile, this week will feature billions in new offerings, led by a $4.5 billion sale of general obligation bonds from the State of California.

"It's been a pretty slow day," said the trader, who was reached in the afternoon.

"A few things are moving, but it's mostly quiet. I'll call it flat. There has been some movement, but very little."

Amid the light trading action Monday, American Municipal Power Inc. of Ohio continued to receive a warm reception for its recently priced series 2009C taxable bonds. The 6.553% 2039 bonds were seen at 6.318%. Those bonds, the trader reported, were flat most of the day, but investors have been very interested in the bonds in secondary. The 6.453% 2034s were also trading. That maturity was seen at 6.525% in afternoon trading.

Elsewhere, the Tangipahoa Parish Hospital Service District of Louisiana's series 2009A revenue bonds priced for North Oaks Health System were seen in action. The 7.2% 2042s were seen at 6.789%.

Looking to the week's primary market, California's planned $4.5 billion sale of G.O. bonds will take center stage.

The offering is planned for Thursday with retail order periods set for Tuesday and Wednesday.

The bonds will be sold on a negotiated basis through senior managers Goldman, Sachs & Co., Siebert Brandford Shank & Co. LLC and Morgan Stanley & Co. Inc.

Phoenix sale planned

Also coming up this week, the City of Phoenix plans to price $480.43 million in series 2009 various purpose G.O. bonds (Aa1/AAA/) on Tuesday, said a sales calendar.

The deal includes $79.85 million in series 2009A tax-exempt bonds, $201.105 million in series 2009B taxable bonds, $69.045 million in series 2009C taxable bonds and $130.43 million in series 2009D tax-exempt bonds.

RBC Capital Markets Corp. is the senior manager.

Proceeds will be used to fund capital expenditures.

Delaware to bring $400 million

In other upcoming offerings, the State of Delaware is set to price $400 million in series 2009 G.O. bonds during the week, said a sales calendar.

The bonds will be sold through senior manager Morgan Stanley.

Proceeds will be used to fund general capital expenses.

Also in the Northeast, the Dormitory Authority of the State of New York plans to sell $349.805 million in series 2009 state personal income tax revenue bonds on Thursday, according to a sales calendar.

The sale includes series 2009G bonds and series 2009H bonds, but the exact breakdown was not available Monday.

The offering will be sold through senior manager Goldman Sachs.

The 2009G bonds are due 2010 to 2022, and the 2009H bonds are due 2039.

Proceeds will be used to fund capital projects and improvements for the City University of New York's community and senior college campuses.

Atlanta plans $433.44 million sale

Looking out on the horizon, the City of Atlanta plans to sell $433.435 million in series 2009B water and wastewater revenue bonds, said a preliminary official statement.

The bonds (Aa2/AAA/AA+) will be sold through senior managers Goldman Sachs, SunTrust Robinson Humphrey Inc. and Terminus Securities.

The bonds are due 2010 to 2024 with term bonds due 2029, 2034 and 2039.

Proceeds will be used to refund the city's series 2001B and 2001C bonds.

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