New York releases terms on $605 million refunding GOs; Minneapolis-St. Paul Airport postponed

By Sheri Kasprzak

New York, Dec. 14 - Even though new-issue activity was almost non-existent on Friday, a few new bond issues emerged from the pipeline during the week.

Heading up the list was an issue of $605 million in fixed-rate refunding general obligation bonds priced by the City of New York.

A source close to the bonds (Aa3/AA/AA-) said the serial maturities ranged from 2008 through 2027 and the yields ranged from 3.12% in 2009 to 4.6% in 2027.

The deal came pretty much on top of talk, which pegged the yields at between 3.1% and 4.6%.

The bonds settle Jan. 3.

Morgan Stanley was the senior manager on the refunding issue with Bear, Stearns & Co., Citi and Merrill Lynch & Co. as co-managers.

Texas Water Development bonds

Another issue sold this week was $203 million in new money bonds from the Texas Water Development Board.

Those bonds (AAA/AAA/AAA) priced on Wednesday, said Nancy Marstiller of the board in an interview Friday with Prospect News.

"The proceeds will be used to reimburse the board for loans made to a client," Marstiller said Friday. "We didn't have time to sell the bonds at the time."

The bonds have a 2008 maturity and then a series from 2010 through 2027. The 2008 maturity has a 4% coupon and the 2010 through 2013 bonds also have a 4% coupon. The 2013 through 2027 maturities have a 5% coupon.

The yields range between 2.97% through 4.47%.

Minneapolis-St. Paul Airport bonds postponed

Elsewhere, an offering $75 million in refunding bonds (AA-/AA-) from the Minneapolis-St. Paul Metropolitan Airport Commission was postponed after the commission could not get the minimum present value savings it was hoping for.

A pricing date for a return to market has not yet been determined, a source familiar with the bonds said Friday.

"They're definitely back on the calendar, but no pricing date has been set," said the insider. "They just didn't get the savings they were after so they put it off for a while. I really don't have many other details other than they're refunding of a 1998 series of bonds."

The source did note that the bonds have a maturity series from 2009 to 2016.

Steve Busch, director of finance for the commission, told Prospect News earlier in the week that if the commission could not get a minimum 3% present value savings, the bond issue would be postponed. Busch noted that no changes have been made to the bonds.

The lead underwriter is Bear, Stearns & Co.

Indianapolis bonds set to price

Looking forward, $283 million in Indianapolis Bond Bank notes are set to price with $109 million due July 2008 and $174 million due January 2009.

The notes are scheduled to price Tuesday. The bond bank notes are expected to settle on Dec. 27.

Another issue from Indiana is $110 million in Indianapolis Bond Bank Waterworks bonds. Those bonds, which are being sold through senior manager Bear Stearns, are scheduled to price Monday.

The bonds are due in a series from 2009 through 2038.

Loop Capital is the co-manager.

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