New issue action continues to thrive; Michigan Municipal Bond Authority to sell $690.59 million

By Cristal Cody and Sheri Kasprzak

New York, Aug. 4 - New offerings picked up on Monday, and pricing activity looks to remain active into August, as one sellsider noted earlier to Prospect News.

"We're probably well on track to have, if not a record year in terms of issuance, a full one," the sellside source said.

Another sellside source said Monday that activity is good and there does seem to be good demand for munis.

"We're not seeing any slowdown," he asserted. "It's looking pretty good, in fact. It's been a tough time for issuers to get the pricing terms they're looking for, but investors still seem interested."

Heading up this week's round of offerings, the Michigan Municipal Bond Authority expects to price its previously announced $690.59 million revenue notes on Tuesday, a source said.

The series 2008 notes are due Aug. 20, 2009.

The sale includes $197.465 million series 2008A1 and $493.125 million series 2008A2 notes.

Siebert Brandford Shank & Co. is the senior manager of the negotiated sale.

Proceeds will be used to purchase notes from school districts to provide funds to meet operating cash flow deficits anticipated in the fiscal 2008/2009 year.

New Jersey Transit sale planned

In another large offering, New Jersey Transit expects to price $344.9 million in bonds later this week, said a calendar of upcoming sales.

The bonds will be sold on a negotiated basis through the New Jersey Economic Development Authority.

Morgan Stanley is the senior manager of the sale.

The proceeds will be used for construction and development of New Jersey Transit's light rail conversion project.

Upper Chesapeake sale

Also ahead, the Upper Chesapeake Health System plans to price $124.1 million variable-rate revenue bonds later in the week, a source said Monday.

The bonds (Aaa) will price through the Maryland Health and Higher Educational Facilities Authority.

The $63.91 million series 2008A bonds will price with a daily interest rate on Friday.

The $60.19 million series 2008B bonds will price with a weekly interest rate on Thursday.

Banc of America Securities LLC and Branch Banking and Trust will manage the negotiated sale.

Blount County, Tenn., deal

Also ahead, Blount County and the Blount County Public Building Authority in Tennessee expect to price $127.4 million local government public improvement bonds on Thursday, a source with the issuer told Prospect News.

The series E5A bonds (A1) will be sold in a negotiated sale managed by Morgan Keegan & Co.

Proceeds will restructure the county's outstanding $40 million series A3A, $55.58 million series C2A, $6.93 million series B1C, $10 million series B4A and $14 million series D1B bonds.

Oregon mortgage revenue bonds

Further out, the Oregon Housing and Community Services Department plans to price $92.71 million mortgage revenue bonds on Aug. 11, according to a sale calendar.

The sale includes $52.53 million series 2008G and $5.53 million series 2008H fixed-rate bonds and $34.65 million series 2008I weekly interest variable-rate bonds.

The series 2008G bonds have serial maturities from 2013 through 2023 and terms due 2028 and 2030.

The series 2008H bonds have maturities from 2009 through 2012, and the series 2008I term bonds are due 2037.

JPMorgan is the senior manager of the negotiated sale.

Proceeds will be used to purchase $89.929 million of new mortgage loans.

Palm Beach's revenue bonds

Moving to later in the month, Palm Beach County in Florida expects to price $180 million public improvement revenue bonds on Aug. 18, a source said Monday.

The series 2008 bonds (Aa1/AA+/AA+) will be sold in a negotiated sale led by senior manager Merrill Lynch & Co.

Proceeds will be used to acquire, renovate, construct and equip additional law enforcement facilities, to refinance debt and to make a deposit to a debt service reserve fund.

Jackson-Madison County hospital

Also on the horizon, the Jackson-Madison County General Hospital, also known as Tennessee Healthcare, plans to price $298.995 million fixed-rate hospital revenue refunding bonds on Aug. 19, a source said Monday.

The series 2008 bonds (A1) will price through the city of Jackson, Tenn.

Citigroup Global Markets will manage the negotiated sale.

Proceeds will be used to refund $78.3 million from the series 2003A insured auction-rate bonds, $48.7 million from the series 2006A insured auction-rate bonds and $143.6 million of the series 2006B insured variable-rate bonds and to pay $15.3 million to terminate interest rate swaps on the bonds.

Houston's Methodist Hospital

In other upcoming deals, the Methodist Hospital of Houston, Texas, is planning to sell $350 million in debt securities, according to a calendar of upcoming deals.

The bonds will be sold on a negotiated basis with J.P. Morgan Securities as the lead manager.

The full details of the offering were not immediately available.

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