Salt River Project in Arizona to sell $400 million revenue bonds; secondary firms in light action

By Sheri Kasprzak

New York, Dec. 19 - Municipals action ground to a halt ahead of the holiday week, but pricing activity is already stacking up for the New Year.

One sellside source reached Friday was rather glib in his response about new issue action ahead of the holidays.

"Nothing to say," he told Prospect News. "Literally, I mean, there's nothing to say."

That may not be true for January, when offerings are already in the pipeline, including a $400 million sale of series 2009A electric system revenue bonds from the Salt River Project Agricultural Improvement and Power District of Arizona that are slated to price the week Jan. 12.

The bonds (Aa1) will sell on a competitive basis, and the proceeds will go to fund ongoing capital improvement projects, including power generation, transmission and distribution investment.

Also ahead for the New Year is a $110.74 million offering of series 2009A general obligation bonds from New Castle County, Del.

The bonds (Aaa/AAA/AAA) will be sold on a negotiated basis with Merrill Lynch & Co. as the senior manager.

The bonds are due 2009 to 2028 with term bonds due 2033 and 2039.

Proceeds will be used for capital improvement projects and for refunding the county's series 1998 bonds.

Notre Dame sale ahead

Also coming up in January, the University of Notre Dame in Indiana is expected to sell $100 million in series 2009 taxable fixed-rate notes, said a preliminary official statement released Friday.

The notes (Aaa) will be sold on a negotiated basis with Merrill Lynch as the lead manager.

The maturity date for the notes has not been set.

Proceeds will be used for the day-to-day operating expenses of the university.

Terms emerge in Illinois sale

Elsewhere on Friday, the terms for the State of Illinois's $1.4 billion sale of series 2008 G.O. certificates were released.

The certificates (MIG 2/SP-1+/) are due April 24, 2009; May 25, 2009; and June 24, 2009. The April certificates priced with a 4.5% coupon to yield 3.5%. The May certificates priced with a 4.5% coupon to yield 3.75%, and the June certificates priced with a 4.5% coupon to yield 4%.

The pricing of the deal was pushed back to Dec. 16 from Dec. 11.

J.P. Morgan Securities Inc. was the winner of the competitive bid.

Proceeds will be used to meet variations between the disbursement of and receipt of budgeted funds during 2009.

Secondary firms up

Moving to the secondary market, yields firmed slightly to round out the week, even as trading volume remained "very light," according to one trader.

"There's some action here and there," he noted. "We'll get a nibble from time to time this afternoon. It was dead quiet this morning, though."

Looking to specific trades, Deschutes County Hospital Facilities Authority of Oregon's series 2008 hospital revenue refunding bonds sold for Cascade Healthcare Community were seen in play. The 8.25% 2038s were seen trading at 8.5% Friday, the same level at which they priced on Thursday.

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