Dasny brings $646.125 million PITs to yield 1.5%-5.55%; New York Transportation prices $750 million

By Sheri Kasprzak

New York, Nov. 13 - A load of new issue pricings dominated municipals news Thursday, led by the Dormitory Authority of the State of New York's $646.125 million in personal income tax revenue bonds. Billions in sales were expected for Thursday, bucking a trend of issuers postponing offerings.

"Munis are more attractive now, especially given the way the stock market is performing," said one sellside source reached Thursday afternoon.

"Investors can still expect to get some really good yield on the long end."

Even though the long end of Dasny's series 2008 personal income tax revenue bonds (/AAA/AA-) may not have reached the purported 6% yields some 30-year bonds have been yielding lately, the 30-years did yield 5.55%.

Yields from 1.5%-5.55%

The authority sold $532.95 million in series 2008B education bonds, $61.835 million in series 2008C education bonds and $51.34 million in series 2008C economic development and housing bonds.

The 2008B education bonds are due 2010 to 2026 with term bonds due 2028, 2035 and 2038. The serials have coupons from 3% to 5% to yield 2.25% to 5.08%. The 2028 bonds have a 5% coupon to yield 5.16%, and the 2035 bonds have a 5.75% coupon to yield 5.5%. The 2038 bonds have a 5.375% coupon to yield 5.55%.

The 2008C education bonds are due 2028 and 2032. The 2028 bonds have a 5% coupon to yield 5.16%, and the 2032 bonds have a 5.25% coupon to yield 5.43%.

The 2008C housing bonds are due 2010 to 2011 with a term bond due 2014. The 2010 bonds have a 1.5% coupon, priced at par, and the 2011 bonds have a 4.625% coupon, also priced at par. The 2014 bonds have a 2.75% coupon, priced at par.

The bonds were sold through lead manager Morgan Stanley.

Proceeds will be used for capital improvements at state educational facilities as well as for refunding outstanding bonds.

Elsewhere, the New Jersey Transportation Trust Fund Authority priced $750 million in series 2008A transportation system bonds (A1//A+), James Petrino, deputy director of public finance for New Jersey's Department of Treasury, confirmed with Prospect News Thursday.

The full terms of the bonds were not immediately available.

Merrill Lynch & Co. was the lead manager for the sale, and the bonds are due 2023 to 2038.

Proceeds will be used for capital projects and maintenance.

Plano ISD prices $180 million

In other pricing news Thursday, the Plano Independent School District of Texas brought $180 million in series 2008A unlimited tax school building bonds, said a sellside source.

The bonds (/AA/) were sold through lead manager Morgan Keegan & Co., and First Southwest Co. was the financial adviser.

The bonds are due from 2010 to 2030 with coupons from 0% to 5.25% and yields from 2.6% to 5.36%. The deal also included a term bond due 2034, which priced with a 5.25% coupon to yield 5.5%.

The true interest cost for the bonds came out to 5.1498453%.

Proceeds will be used for the construction, acquisition, renovation and equipment of school buildings; the acquisition of building sites for new schools; and the acquisition of new buses.

WellSpan sells $200.53 million

Also priced this week was WellSpan Health's $200.53 million in series 2008A revenue bonds on Wednesday, said Richard Harley, the health-care provider's chief financial officer. The bonds were sold through the General Authority of Southcentral Pennsylvania.

The bonds (//AA-) are due from 2009 to 2018 with coupons from 3% to 6%, all priced at par. The sale also included term bonds due 2025 and 2029. Both term bonds have 6% coupons, priced at par.

The authority had planned to sell $265.555 million in the series 2008A bonds, but that amount was reduced. The offering had been scheduled to price in September but was postponed a few times.

Citigroup Global Markets was the lead manager for the negotiated sale.

Proceeds will be used to refund the authority's series 2002, 2005A, 2005B, 2005C, 2005D, 2007A and 2007B bonds.

Massachusetts sale ahead

Looking forward, the Commonwealth of Massachusetts plans to price $552.755 million in series 2008A general obligation refunding revenue bonds, said a preliminary official statement.

Citigroup Global Markets is the senior manager for the negotiated sale.

The bonds are due 2009 to 2023 with term bonds due 2028 and 2032.

Proceeds will be used to refund the commonwealth's series 2007 bonds.

Virginia Resources to sell $218.99 million

Also ahead, the Virginia Resources Authority plans to sell $218.985 million in 2008B infrastructure revenue bonds, said a preliminary official statement.

The sale includes $150.375 million in series 2008B senior bonds (Aaa/AAA/) and $68.61 million in series 2008B subordinate bonds (Aa2/AA/).

The offering is expected to take place in November.

The bonds will be sold on a negotiated basis with Citigroup Global Markets and Morgan Keegan as the lead managers.

The senior bonds are due from 2009 to 2023 with term bonds due 2028, 2033 and 2038. The subordinate bonds are due 2009 to 2023 with term bonds due 2028, 2033 and 2038.

Proceeds will be used for rental payments under a lease obligation and a deposit to a debt service reserve fund.

Tennessee school authority deal

In other upcoming deals, the Tennessee State School Bond Authority is slated to price $169.77 million in series 2008B higher educational facilities second program bonds the week of Nov. 17, said a preliminary official statement.

The bonds (Aa2/AA/AA) will be sold on a negotiated basis with J.P. Morgan Securities Inc. and Banc of America Securities as the senior managers. The co-managers are M.R. Beal & Co., Morgan Keegan and Prager, Sealy & Co.

The bonds are due 2009 to 2038.

Proceeds will be used for capital improvement projects at various higher educational facilities throughout the state.

Chicago Transit offering

Looking at other upcoming sales, the Chicago Transit Authority plans to sell $175 million in series 2008A capital grant receipts revenue bonds, said a preliminary official statement.

The bonds (A2/A/) will be sold on a negotiated basis with Siebert Brandford Shank & Co. and J.P. Morgan Securities as the lead managers.

Proceeds will be used for construction projects for the city's transit system.

Nassau Sewer bonds trade at 4.121%

Moving to Thursday's secondary market activity, one trader said the tone of the market was a bit firmer and that trading activity picked up slightly from Wednesday.

"Looks like more interest in the long end," he said.

"We're seeing quite a few trades for 25-, 30-year bonds, more so than shorter term bonds."

Looking at particular trades, Nassau County [N.Y.] Sewer and Storm Water Finance Authority's 5% series 2008A system revenue bonds due 2017 were seen trading at 4.121%. Those bonds priced Nov. 4 to yield 4.45%.

The authority's 2010 bonds from the same series were trading around 2.85% Thursday. The bonds priced Nov. 4 to yield 3.16%.

Also out of New York, the Long Island Power Authority's series 2008B 5.625% bonds due 2023 were seen trading at 5.276% Thursday. The bonds priced Oct. 30 to yield 5.82%. A trader said the bonds had been trading slightly lower earlier this week.

The 5.625% 2032s of Nevada's Clark County Water Reclamation District were seen trading at 5.534% on Thursday.

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