Sweetwater Union High Schools plans $180 million deal; Florida DOT's $342.1 million issue pricing soon

By Cristal Cody and Sheri Kasprzak

New York, Jan. 7 - The municipal market remained slow Monday as it adjusted to the after-holidays doldrums.

"There's really not much out there," one underwriter said. "Later in the month, the calendar will pick up, but I don't know how heavy it will be."

More action is expected in mid-January and February.

Sweetwater Union High School District in Chula Vista, Calif., expects to issue a $180 million bond in mid-February, according to one underwriter. Additional information about how the proceeds will be used was not available by press time.

"It's a pretty light week," another underwriter said.

In other news Monday, the Florida Department of Transportation's $342.1 million bonds received a rating of Aa2 by Moody's Investors Service.

The Florida Division of Bond Finance, which issues bonds and performs as the state's financial advisor, expects to issue the series 2008A competitive turnpike revenue bonds over the next three weeks. The department gives 18 hours of notice before a bond sale.

The state's bond division is watching the markets first before it determines when the turnpike bonds will price, a spokesman said.

The turnpike bonds have serial maturities from July 1, 2008, to July 1, 2037.

Moody's gives the bonds a stable outlook.

The Florida Department of Transportation has a 1997 covenant to pay the turnpike's annual operating and maintenance expenses on a reimbursable basis, which provides bondholders with a first claim on the gross revenues of the system.

The bond proceeds will be used to fund a portion of the turnpike's capital improvement program and refund the series 1997A turnpike revenue bonds for a net present value savings of at least 5%.

Fairfax County plans $237.9 million

Looking ahead, Fairfax County, Va., reportedly will price $237.9 million in public improvement bonds series 2008A.

The Aaa rated bonds will price on Jan. 15, according to a statement released Monday by Moody's Investors Service.

A Fairfax official, who did not have a lot of details on the offering, said she believed the deal is a competitive issue.

Proceeds from the issue, Moody's said, will be used to fund various county and county school board projects.

Moody's gave the bonds a Aaa rating on Monday, citing a stable tax base given Fairfax County's "favorable location, expanding high-end employment base and strong wealth levels, despite the ongoing slowdown in the housing market."

Moody's noted that Fairfax has a $241 billion tax base.

Secondary remains quiet

In secondary action, a trader reached Monday said activity remains light.

"Very, very small retail things," said the trader when asked Monday afternoon about activity in muni trading. "We haven't really been seeing the big institutional block trades we normally see. Secondary really has been slow the past couple of months."

Another trader said she also hadn't seen much going on in the secondary market.

"It's been light," she said. "There's really not much to talk about in munis right now."

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