Market salivates for California's $8.8 billion RAN sale; Dasny bonds attract retail interest

By Cristal Cody

Tupelo, Miss., Sept. 15 - Municipals stayed active on Tuesday as the market gears up for $8.8 billion in revenue anticipation notes that California plans to sell later in September.

Meanwhile, the Dormitory Authority of the State of New York held the retail sale on Tuesday for $555.465 million of series 2009 consolidated service contract refunding revenue bonds.

"It went fairly well with several maturities terminated," said Anthony Shields, senior vice president of Grigsby & Associates.

Looking back to the California notes, the state plans to hold the sale on Sept. 23.

"A large segment of the market seems to be keeping their powder dry" for the notes, Shields said. "It's a lot of paper but should present opportunity for people in money market funds to get some yield. They did get a MIG 1 rating, which is very helpful."

California intends to sell the series 2009/2010 A1 and A2 revenue anticipation notes through a negotiated sale led by senior manager J.P. Morgan Securities Inc.

The notes are due in 2010.

The proceeds will be used to help the state's cash flow management for the 2009/2010 fiscal year.

Tuesday sees billions

Meanwhile on Tuesday, billions of dollars in new issues were expected to price, but issuer representatives did not have immediate sale information.

Massachusetts intended to sell $1.2 billion in series 2009A-C general obligation revenue anticipation notes (MIG1/SP-1+/F1+) on a competitive basis.

Utah expected to price up to $729.545 million in series 2009D taxable G.O. Build America Bonds (Aaa/AAA/) via a negotiated sale led by senior manager Morgan Stanley & Co. Inc.

The City and County of Honolulu in Hawaii also was expected to sell $276.985 million in series 2009 wastewater system revenue bonds.

South Carolina Transportation to price

Several sales are planned for later this week.

The South Carolina Transportation Infrastructure Bank plans to price $93.615 million in revenue refunding bonds on Thursday on a competitive basis, according to a notice of sale.

The series 2009A bonds (A1//A) have serial maturities from 2010 through 2014 and in 2016 and 2017.

Public Financial Management, Inc. is the financial adviser for the sale.

The proceeds will be used to refund a portion of the bank's outstanding series 1998A, series 1999A and series 2000A bonds.

Tulsa to sell $70 million

Also on Thursday, the City of Tulsa, Okla., intends to sell $70 million in G.O. bonds, according to a notice of sale.

The series 2009B bonds (Aa2/AA/) have serial maturities from 2011 through 2019.

The bonds will be sold on a competitive basis.

Proceeds will be used to finance street and bridge projects.

Brown to sell revs for construction

Looking ahead, Brown University expects to sell $78 million in higher education facilities revenue bonds through the Rhode Island Health and Educational Building Corp., according to a preliminary official statement.

The series 2009A bonds (Aa1/AA+/) are due Sept. 1, 2039.

JPMorgan is the senior manager of the negotiated sale.

Proceeds will be used to refund the university's outstanding series 2006 commercial paper notes that are due on or before Nov. 13, renovate campus buildings and residence halls and add new buildings, including a fitness center, a creative arts building and an aquatics center.

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