Municipals gain little ground; upcoming pricing action seen heavy ahead of holiday slowdown

By Sheri Kasprzak

New York, Dec. 7 - Municipals were mostly unchanged on Monday as the calendar of upcoming deals was built up. One market insider reached in the afternoon said primary issuance is likely stacking up ahead of the holiday season, when new-money deals will slow down substantially.

"It's really the storm before the calm, if you want to call it that," the sellsider said.

"Everyone is pushing their deals out before the end of the year. The next couple of weeks will probably be pretty busy, and then it's going to be absolutely dead until the beginning of next year."

Meanwhile, a trader said yields were little moved on Monday as the week got off to a slow start.

"There's not a lot going on today," she said.

"It's been really quiet. I'd call it flat, but out on the long end, maybe 30 or 40 years, you'll see a little bit of firmness. Yields might be a basis point or so better out there."

In light trading activity, the Winchester Industrial Development Authority of Virginia saw its recently priced series 2009E bonds sold for Valley View Health System trading. The 5.75% 2039 bonds were seen at par.

New Jersey brings $325 million

Amid the light pricing action, the State of New Jersey priced Monday $325 million in series 2010C tax and revenue anticipation notes, said a sellside source familiar with the offering.

The notes (MIG 1/SP-1+/F1+) were sold competitively with J.P. Morgan Securities Inc. as the winning bidder.

The 2.5% notes are due 2010 and priced to yield 0.25%.

Proceeds from the sale will be used to fund capital expenditures ahead of the collection of property taxes.

Park Nicollet Health to price

Looking out on the horizon, the City of St. Louis Park in Minnesota is expected to sell $191.66 million in series 2009 health-care facilities revenue refunding bonds for Park Nicollet Health Services, said a preliminary official statement.

The bonds (/A/) will be sold through senior managers Morgan Stanley & Co. Inc. and Wells Fargo Securities Inc.

Proceeds will be used to refund the health services provider's series 2008A-B bonds as well as to terminate a swap agreement connected to those bonds.

Also in the Midwest, the School District of the City of Detroit is expected to sell $123.24 million in series 2009A unlimited tax school building and site general obligation bonds, said a preliminary official statement.

JPMorgan and Siebert Brandford Shank & Co. LLC are the senior managers.

The bonds are due May 1, 2025.

Proceeds will be used to purchase land and construct schools at qualified school sites within the district.

Via Christi Health bonds ahead

Also coming up, the City of Wichita, Kan., plans to price $90 million in series 2009X hospital facilities revenue refunding bonds for Via Christi Health System, said a preliminary official statement.

The bonds (/A+/A+) will be sold on a negotiated basis with Morgan Stanley as the lead manager.

Proceeds will be used to refund the health system's series 1999 bonds.

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