Short bonds improve, longer maturities hold steady; Lubbock, Wake County prepare offerings

By Sheri Kasprzak

New York, March 14 - Shorter maturities were seen firmer by 1 to 2 basis points, market insiders reported Monday, and longer bonds were largely unchanged.

"It does feel firmer, but it seems like most of it is limited to bonds inside 10 years," said one trader reached during the day.

"There's not a lot of trading, not a lot of liquidity in the market right now. There's that firmer spot, but the rest [of the market] is flat."

Tom Kozlik, municipal credit analyst with Janney Montgomery Scott LLC, reported Monday that just $3.1 billion of new issuance is slated to price during the week, led by a $200 million offering from the State of Connecticut. The series 2011A state revolving fund general revenue bonds from Connecticut will be offered through Ramirez & Co. Inc. and are due 2012 to 2031.

Proceeds will be used to fund loans and reimburse the state for previously advanced loans.

Although the week before provided more new issue fodder, most of the deals priced were high-grade bonds and the pricings did little to offer direction for lower-rated bonds, insiders said.

Lubbock bonds ahead

Looking to Tuesday's new-issue calendar, the City of Lubbock, Texas, is slated to bring $144.43 million of series 2011 general obligation bonds and certificates of obligation through Morgan Keegan & Co. Inc.

The offering is comprised of $13.53 million of series 2011 G.O. bonds, $16.245 million of series 2011 G.O. refunding bonds and $114.655 million of series 2011 tax and waterworks system revenue certificates of obligation.

Proceeds from the offering will be used to finance public safety and street improvements, to make improvements to water, sewer and storm water utilities and to refund debt.

Wake County preps deal

Also coming up on Tuesday, Wake County, N.C., is set to sell $116.8 million of series 2011 G.O. public improvement bonds (Aaa/AAA/AAA) competitively with Waters and Co. LLC as the financial adviser.

The bonds are due 2012 to 2030, and the county intends to use the proceeds to construct, expand, renovate and acquire public school facilities and open space projects.

The county seat is Raleigh.

Tufts deal looms

Coming up during the week of March 21, the Massachusetts Development Finance Authority is expected to price $195 million of series 2011I revenue bonds for the Tufts Medical Center, said a preliminary official statement.

The bonds (/BBB/BBB) will be sold through Barclays Capital Inc. and J.P. Morgan Securities LLC.

Proceeds will be used to construct, improve and expand the acute care hospital operated by Tufts as well as other Tufts facilities. The proceeds will also be used to refinance existing debt.

The medical center is located in Boston.

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