California to bring $4 billion in RANs; South Carolina Public Service Authority to sell $350 million

By Cristal Cody and Sheri Kasprzak

New York, Oct. 10 - Despite a short day for trading, yields on 30-year general obligation bonds rose on Friday and a smattering of new offerings grabbed market headlines.

Trading ended early Friday and the market will be closed on Monday in observance of Columbus Day, but that didn't stop G.O.s from trading at 5.71%, compared with the 4.12% 30-year Treasury bond yield, according to Municipal Market Advisors.

In new-issue action, issuers appear ready to bring billions of dollars in sales in the week ahead, bolstered by the $750 million sale of revenue anticipation notes on Wednesday from the Commonwealth of Massachusetts.

The notes priced with 2.2% yields through a negotiated sale after two previous attempts to hold competitive sales.

In upcoming action, California is scheduled to bring $4 billion in revenue anticipation notes on Thursday.

The series 2008-09A notes are due in June 2009.

Banc of America Securities and Goldman, Sachs & Co. are the senior managers of the negotiated sale.

Proceeds will be used for the state's cash flow management needs.

Santee Cooper, New York sales

Issuers seemed more ready to announce their upcoming sales Friday, making a marked turn from the past few weeks when issuers shied away from putting their sales on the table.

The South Carolina Public Service Authority, also known as Santee Cooper, plans to price $350 million in revenue obligations, according to a preliminary official statement released Friday.

The sale includes $300 million in series 2008A tax-exempt and $50 million in series 2008B taxable obligations.

Goldman Sachs and Citigroup Global Markets are the senior managers of the negotiated sale. Proceeds will be used to fund a portion of the ongoing capital improvement program and to retire outstanding commercial paper notes.

Also ahead, the City of New York will be selling $345 million in series 2009E G.O. bonds, according to a preliminary official statement.

The $300 million subseries E1 tax-exempt bonds and the $45 million subseries E2 taxable bonds have serial maturities from 2010 through 2029.

Morgan Stanley is the senior manager of the negotiated sale.

Proceeds will be used for capital purposes.

Chicago's wastewater bonds

Moving to Chicago, the city is gearing up to sell $332.3 million in senior-lien wastewater transmission variable-rate revenue refunding bonds, said a preliminary official statement released Friday.

The bonds (//AA-) will be sold on a negotiated basis with JPMorgan as the senior manager.

The sale includes $116.15 million in series 2008C-1 bonds, $116.15 million in series 2008C-2 bonds and $100 million in series 2008C-3 bonds.

The bonds are due Jan. 1, 2039, and the rate will reset at the daily, weekly or short-term intermediate modes.

Proceeds will be used to refund the city's outstanding series 2004A second-lien wastewater transmission revenue bonds.

Connecticut Housing to price $143.42 million

In other upcoming deals, the Connecticut Housing Finance Authority plans to price $143.42 million mortgage finance bonds in six tranches, according to a preliminary official statement.

The sale includes $63.42 million series 2008C, $2.85 million subseries C1, $54.585 million subseries C2, $3.985 million subseries C3, $2 million subseries C4 and $16.58 million series 2008D bonds.

The series 2008C and subseries C1 bonds have serial maturities from 2009 through 2015.

The subseries C2 bonds have serial maturities from 2015 through 2018 with terms due 2023, 2029 and 2039, and the subseries C3 and C4 bonds have serial maturities from 2009 through 2018.

The series 2008D bonds have serial maturities from 2009 through 2018 with terms due 2029 and 2039, with a mandatory tender date in 2011 on the 2038 maturity.

Goldman Sachs is the senior manager of the negotiated sale.

Proceeds will be used to refund or replace maturities of outstanding bonds, to provide new money to finance permanent home mortgage loans and to fund the housing mortgage capital reserve fund.

Florida Municipal Power to price $110 million

The Florida Municipal Power Agency expects to price $110 million in refunding revenue bonds for the Stanton II project, according to a preliminary official statement.

The series 2008 bonds have serial maturities from 2009 through 2027.

Wachovia Bank, NA is the senior manager of the negotiated sale.

Proceeds will be used to refund $40.725 million from the series 2000 variable-rate bonds and $58.575 million from the series 2004 variable-rate bonds and to pay fees to terminate interest rate swap agreements.

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