U of Vermont brings $82.28 million in G.O.s; Illinois, Temple University plan sales

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, April 2 - In what traders reported as a "quiet" day, some primary action took place, led by an $82.28 million sale of general obligation bonds from the University of Vermont and State Agricultural College.

"It's been really quiet today," said a trader reached Thursday afternoon.

"Not a lot moving, and we're pretty much unmoved."

Looking at the University of Vermont sale, the university sold the G.O.s (A1/A+/) through lead manager Citigroup Global Markets Inc.

The deal priced with an all-in true interest cost of 5.05%, said Ted Winfield, associate vice president.

The bonds carry maturities from 2010 to 2029 with term bonds due 2034 and 2039.

Proceeds will be used to refund existing bonds.

The University of Vermont and State Agricultural College is located in Burlington, Vt.

The State of Michigan also priced G.O. bonds on Thursday. The state sold $468.139 million in bonds, but the terms were not immediately available, a sellside source said. The terms should be available as early as Friday.

The bonds were sold through Merrill Lynch & Co. and Goldman, Sachs & Co.

Proceeds will be used to make loans to school districts and refund existing bonds.

Illinois sale ahead

Moving to upcoming sales, the State of Illinois is scheduled to bring $150 million in series 2009 G.O. bonds on Tuesday, said a preliminary official statement released Thursday. News of the sale comes the same day as ousted Illinois governor Rod Blagojevich's indictment on corruption charges.

The bonds (Aa3/AA-/AA-) will be sold on a competitive basis with Scott Balice Strategies as the financial adviser.

The bonds are due 2010 to 2034.

Proceeds will be used for deposits to the state's capital development fund, series A transportation fund, series B transportation fund, school construction fund, anti-pollution fund and coal development fund.

Temple bonds coming

Also ahead, Temple University in Philadelphia is set to sell $120 million in series 2009 commonwealth system of higher education university funding obligations on Thursday, said a preliminary official statement.

The obligations (MIG 1) will be sold on a competitive basis with Public Financial Management Inc. as the financial adviser.

The obligations are due April 16, 2010.

Proceeds will be used to purchase equipment, construct facilities and refinance the university's series 2008 funding obligations.

Alaska Housing bonds

Moving to next month's pricing action, the Alaska Housing Finance Corp. is expected to come to market with an offering of home mortgage revenue bonds, said Michael Strand, the corporation's director of finance Thursday.

The size of the deal will be between $160 million and $240 million, and the pricing is expected to occur at the end of May, Strand told Prospect News.

The bonds will be variable-rate.

Proceeds will refund outstanding bonds.

Secondary stays still

Moving to specific trades, a good amount of interest was seen for the Alaska Industrial Development Authority's series 2009A bonds.

The 5% 2018s were seen at 4.903%.

The 4.25% 2014s were trading at 4.098%.

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