Municipals seen little changed; supply dwindles; MEAG to sell $2.53 billion Plant Vogtle bonds

By Sheri Kasprzak

New York, Feb. 19 - Municipals rounded out the shortened week mostly unchanged Friday as the supply of new issues dwindled substantially, market insiders said.

"We're flat for the most part," said one trader reached in the afternoon.

"Trading is light, but that's typical for Friday."

Meanwhile, a sellsider told Prospect News that new-issue deals are slowing substantially.

"I don't think it's cause for alarm. There are still some deals coming up," he said.

"I think things will pick up into March, but the next week or so is pretty light."

On the secondary side of the market, the Los Angeles Unified School District's series 2010 general obligation bonds were seen in action. Those bonds priced Thursday. The 2010KRY 4.5% 2021 bonds were seen at 3.64%. The 5% 2019 bonds were seen at 3.43%. The series 2010A 3% 2013s were trading at 1.38%. The 6.758% 2034 Build America Bonds were trading Friday afternoon at 6.573% after pricing at par.

The State of Illinois' series 2010 refunding bonds insured by Assured Guaranty Municipal were moving in secondary Friday. The bonds priced at Thursday. The 5% 2019 bonds were trading at 3.812%. The 4% 2022s were seen at 4.2%, and the 5% 2018s were seen at 3.601%.

MEAG to price Tuesday

Coming up on Tuesday, the Municipal Electric Authority of Georgia plans to bring $2.533 billion in series 2010 project bonds to construct new Plant Vogtle electric generation facilities.

The deal includes $953.24 million in series 2010A project M Build America Bonds, $19.68 million in series 2010B project M tax-exempt bonds, $1.115 billion in series 2010A project J Build America Bonds, $26.57 million in series 2010B project J tax-exempt bonds, $410.88 million in series 2010A project P Build America Bonds and $8.245 million in series 2010B project P tax-exempt bonds.

Goldman, Sachs & Co. is the senior manager for all the bonds.

Montreau bonds ahead

Out on the horizon, the Tulsa County Industrial Authority plans to sell $114.52 million in series 2010 senior living facilities revenue bonds for Montreau Inc., said a preliminary official statement.

The bonds will be sold on a negotiated basis with Ziegler Capital Markets Inc. as the senior manager.

The maturities have not yet been set.

Proceeds will be used to fund the construction of a senior living facility as well as refund existing variable-rate demand bonds.

Indianapolis to sell

Also ahead, the City of Indianapolis is expected to bring to market $59.875 million in series 2010A gas utility distribution system senior-lien revenue refunding bonds, said a preliminary official statement.

The bonds (Aa3/AAA/) will be sold through senior managers Morgan Stanley & Co. Inc. and City Securities Corp.

The bonds are due 2019 to 2024.

Proceeds will be used to refund the city's series 1998A bonds.

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