Pricing action picks up as week moves on; Empire State Development Authority to sell $664 million

By Cristal Cody and Sheri Kasprzak

New York, Nov. 3 - Even though Election Day might be keeping some issuers out of the market Tuesday, the week is gearing up to be an active one for pricings, with billions in sales planned so far.

"Tomorrow [Tuesday] is going to be very quiet," said one sellside source reached Monday afternoon.

"Elections really are keeping issuers away for the day, but it really does look like it's going to get better this week."

Muni volume has faltered over the past month due to shaky market conditions, but some issuers seem to be ready to put their offerings back on the table.

Heading up the week's sales is a $664 million offering from the Empire State Development Authority in New York.

The authority is set to price building aid revenue bonds on Wednesday to repay $663.55 million in series 2003A correctional and youth facilities service contract revenue bonds. Those bonds are up for mandatory tender Jan. 1.

The bonds (//A+) will be sold on a negotiated basis with Merrill Lynch & Co. as the lead manager.

Illinois highway bonds ahead

Also looking ahead this week, the Illinois State Toll Highway Authority plans to price $400 million in toll highway senior priority revenue bonds on Thursday, according to a calendar of sales.

The bonds will be sold through senior manager J.P. Morgan Securities Inc.

Proceeds from the offering will be used for improvements to the state's toll highways.

Also coming up, the Memorial Hermann Healthcare System of Texas is slated to price $228.375 million in series 2008B hospital revenue refunding bonds on Wednesday, said a calendar of upcoming deals.

The bonds (A2/A/) will be sold through the Harris County Health Facilities Development Corp. on a negotiated basis with RBC Capital Markets as the lead manager. The co-managers are J.P. Morgan Securities and Siebert Brandford Shank & Co.

The bonds are due 2028, 2031 and 2035.

Proceeds will be used to repay a bridge loan and fund a debt service reserve fund.

Michigan building authority bonds

On Thursday, the Michigan State Building Authority is expected to sell $195.54 million in series 2008I revenue and revenue refunding bonds, said a calendar of upcoming deals.

The bonds (A1//A+) will be sold on a negotiated basis with Siebert Brandford Shank and Morgan Stanley as the lead managers.

Proceeds will be used for the construction of a new fine arts facility, the renovation of computer technology laboratories, the renovation of natural and biological science laboratories, the refunding of outstanding bonds and a deposit to a debt service reserve fund.

Chicago's planned offering of $190 million in series 2008 second-lien wastewater transmission revenue refunding bonds (/AAA/A-1/AA-) is scheduled for pricing Wednesday.

The bonds will be sold through senior managers Cabrera Capital Markets and RBC Capital Markets.

The sale includes $160 million in series 2008A bonds and $30 million in series 2008B bonds.

Proceeds will be used for improvements and extensions to the city's wastewater transmission system, the refunding of outstanding wastewater transmission bonds and a deposit to a debt service reserve fund.

Harris County Flood bonds

The Harris County Flood Control District in Texas plans to sell its previously announced $160 million in series 2008C contract tax refunding bonds on Thursday, said a calendar of upcoming deals.

The bonds (Aa1/AAA/) will be sold through lead managers Citigroup Global Markets and Siebert Brandford Shank.

The bonds are due 2009 to 2024.

Proceeds will be used to refund the district's series 2008B contract tax refunding bonds.

Nassau County Sewer bonds

Looking to Tuesday's deals, the Nassau County Sewer and Storm Water Finance Authority in New York plans to sell $150.63 million in sewer revenue bonds, said a calendar of upcoming deals.

The lead manager for the negotiated sale is Citigroup Global Markets.

The bonds (A1/A+/A+) are due 2009 to 2018 with term bonds due 2023 and 2028.

Proceeds will be used to refinance outstanding commercial paper notes, refinance the authority's outstanding series 2004A bonds and make some capital improvements to the county's sewer and storm water system.

Indiana Housing sale Thursday

In other upcoming deals, the Indiana Housing and Community Development Authority is scheduled to price its previously announced $140 million in series 2008A single-family mortgage revenue bonds Thursday, 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 deal includes $1.955 million in series 2008A-1 bonds, $85 million in series 2008A-2 bonds and $53.045 million in series 2008A-3 bonds.

The 2008A-1 bonds are due 2010 to 2011. The series 2008A-2 bonds are due 2039, and the 2008A-3 bonds are due 2011 to 2018 with term bonds due 2023, 2029 and 2040.

Proceeds will be used to refund existing obligations.

Wrapping up the major offerings for the week, the Dripping Springs Independent School District of Texas plans to sell $96.17 million in series 2008 unlimited tax school building bonds Wednesday, said a preliminary official statement.

The bonds will be sold on a negotiated basis with Morgan Keegan & Co. as the senior manager.

The bonds are due 2009 to 2038.

Proceeds will be used to construct, acquire, equip and renovate school facilities in the district.

Baltimore to sell G.O.s

Looking a bit further ahead, the Mayor and City Council of Baltimore plans to price $180.37 million in general obligation bonds, according to a preliminary official statement.

The sale includes $171.445 million series 2008C tax-exempt G.O. consolidated public improvement refunding bonds with serial maturities from 2009 through 2022 and $8.925 million series 2008D taxable G.O. consolidated public improvement refunding bonds due 2012.

The bonds (Aa2/AA-/) will be sold through a negotiated sale led by senior manager Merrill Lynch.

The proceeds will be used to refund some maturities from the series 2001A, 2001B, 2003A and 2003B consolidated public improvement bonds and to terminate hedge agreements on the bonds.

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