Munis wake slowly; traders look to quality; Massachusetts Water Pollution offers $443.44 million

By Cristal Cody and Aaron Hochman-Zimmerman

New York, Feb. 23 - Municipal investors sat down at their desks Monday morning and almost immediately became preoccupied with a deluge of headlines and tumbling equities.

"It was very Monday-ish," a senior trader said.

Trading featured some retail activity and nearly no institutional players in the market, he said, with everyone looking for high-quality paper.

"I just wonder if they were paying more attention to the stock market today," he said after the close on Monday.

Investors took a "wait-and-watch day" while they watched what would happen with Citigroup, AIG and what the government will do, he said.

With trading slow, the primary was in hibernation.

Still, a number of deals were slated for Tuesday's calendar and others were announced, including $443.44 million in revolving fund bonds from the Massachusetts Water Pollution Abatement Trust.

Two scoops for San Antonio

Coming up, the Northside Independent School District of San Antonio in Bexar County, Texas, expects to price the previously announced $75 million in unlimited tax school building bonds, Oscar Cardenas, the district's assistant superintendent for finance, told Prospect News.

The series 2009 bonds have serial maturities from 2012 through 2039, according to a preliminary official statement.

Frost Bank is the senior manager of the negotiated sale.

The proceeds will be used to acquire, construct, renovate and equip school facilities and school property.

Meanwhile across town, the City of San Antonio plans to price $436.185 million in revenue refunding bonds, according to a preliminary official statement.

The series 2009A electric and gas systems revenue refunding bonds (Aa1/AA/AA+) will price through a negotiated sale led by senior manager Merrill Lynch & Co.

The proceeds will be used to refund the outstanding series A commercial paper notes.

Massachusetts Water opens spigot

Elsewhere, another large-scale deal was in the works as the Massachusetts Water Pollution Abatement Trust prepared to issue $443.44 million in revolving fund bonds, according to a preliminary official statement.

The series 14 state revolving fund bonds (//AAA) have serial maturities from Aug. 1, 2009 through Aug. 1, 2028 and a term due 2038.

Morgan Stanley and Siebert Brandford Shank & Co., LLC are the senior managers of the negotiated sale.

The proceeds will be used to finance or refinance water pollution abatement and drinking water projects.

Las Vegas-Clark County Library District plans G.O.s

Looking ahead a week, the Las Vegas-Clark County Library District plans to price $50 million in general obligation bonds through a competitive sale on March 3, according to a preliminary official statement.

The series 2009 medium-term bonds (/AA/) have serial maturities from 2012 through 2018.

Hobbs, Ong & Associates, Inc. in Las Vegas and Public Financial Management, Inc. in Seattle are the financial advisers.

The proceeds will be used acquire, construct, improve and equip library facilities in the district.

West Virginia Highways to sell $74.46 million

Also on the horizon, the West Virginia Commissioner of Highways intends to price $74.46 million in special obligation notes.

The series 2009A surface transportation improvements notes (/AA-/) will be sold through a negotiated sale led by senior manager Merrill Lynch.

The proceeds will be used to fund transportation projects and to reimburse the state $14 million for project expenditures.

In other new announcements, the Illinois Finance Authority plans to sell $78.85 million in revenue bonds for the Carle Foundation, according to a preliminary official statement.

The series 2009A bonds (/AA-/AA-) have serial maturities from 2010 through 2020.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

The proceeds will be used to refinance the outstanding principal of a taxable loan made by the Northern Trust Co. on April 3, 2008 and to finance or reimburse the foundation for costs of construction and renovation of health-care facilities.

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