Nassau County, N.Y., brings $132 million TANs; volume to taper ahead of holidays

By Sheri Kasprzak

New York, Dec. 15 - Monday's light pricing action set the tone for what may prove to be a much quieter week for new issue offerings, sellsiders said.

"Holidays are coming up and with all the problems in the market, I think issuers are really just waiting for the next year to price," said one sellsider.

"You might see some stuff here and there. But I think it's going to be a fairly quiet week."

The big offering of the week will come from the State of Illinois, which is still scheduled to price $1.4 billion in general obligation certificates on Tuesday despite the state's governor being arrested on fraud and conspiracy charges last week.

Monday's pricing activity was led by Nassau County in New York. The county priced $132 million in series 2008 G.O. tax anticipation notes, said Jeffrey Nogid with the county treasurer's office.

The sale included $85 million in series 2008A notes, which are due Sept. 30, 2009, and $47 million in series 2008B notes, which are due Oct. 30, 2009.

Citigroup Global Markets was the winning bidder for $15 million of the 2008A notes, which priced with a 2% coupon to yield 0.82%, and J.P. Morgan Securities, Inc. was the winning bidder for $70 million of the 2008A notes, which priced with a 2.5% coupon to yield 0.867%.

Barclays Capital Inc. won the competitive bid for $15 million of the series 2008B notes, which priced with a 2.5% coupon to yield 0.86%. J.P. Morgan won $32 million of the 2008B notes, which priced with a 2.25% coupon to yield 0.867%.

Proceeds will be used for general expenses ahead of the collection of certain taxes by the county.

Nassau's BANs sale

The county has been in the market recently with a bond anticipation note sale as well.

On Friday, the county sold $125 million in series 2008 BANs (MIG 1/SP-1+/F1+), which are due Oct. 15, 2009. The 2.5% notes priced to yield 1.25%.

Merrill Lynch & Co. was the lead manager for the negotiated offering.

Proceeds will be used for general county expenses ahead of a bond sale planned for 2009.

Michigan brings $500 million

Elsewhere in recent pricings, the State of Michigan priced late last week $500 million in series 2009B full faith and credit G.O. notes, said an official statement released Monday.

The notes (MIG 1/SP-1+/F1+) were sold on a negotiated basis with Goldman, Sachs & Co. as the lead manager.

The notes, which are due Sept. 30, 2009, have an initial coupon of 3% to yield 1.65%.

Proceeds will be used for general expenses in fiscal year 2009.

University of Chicago sale

Also priced on Friday was a $421.25 million offering of series 2008B revenue bonds from the Illinois Finance Authority, which were sold for the University of Chicago.

The bonds are due 2013 to 2038 with coupons from 3.5% to 6.25% and yields from 3.28% to 6%.

J.P. Morgan Securities was the lead manager.

Proceeds will be used to finance, refinance or reimburse the university for the construction, acquisition, renovation or improvement of some educational facilities on campus.

Florida water pollution bonds

Moving to the week's upcoming sales, the Florida Water Pollution Control Financing Corp. plans to sell $201.12 million in series 2008A water pollution control revenue bonds, said a preliminary official statement.

The bonds (Aaa/AAA/AAA) will be sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The bonds are due from 2010 to 2023 with a term bond due 2029.

Proceeds will be used for loans to eligible borrowers for water pollution control projects.

Also coming up this week, the Rio Nuevo Multipurpose Facility District in Arizona plans to sell $77.585 million in series 2008 subordinate lien excise tax revenue bonds, said a calendar of upcoming sales.

The bonds (A2//A-) will be sold on a negotiated basis with Piper Jaffray & Co. as the senior manager.

Proceeds will be used for funding improvements to cultural and civic event facilities and transportation infrastructure as well as partially repaying funds advanced by the City of Tucson.

Secondary market unchanged

Moving to the secondary market, traders said Monday that activity was light and the tone remained virtually unmoved.

"It's still amazingly slow," said one trader reached in the afternoon.

"Barely anything is trading, from what we've seen. It's been very quiet, even for this time of year."

Another trader said that while it was slow going, there was some activity on the long end.

"What is trading does seem to be on the long end," he noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.