New offerings led by NYC's $965 million G.O. bonds; Puerto Rico Housing heads sale news

By Cristal Cody

Springdale, Ark., July 29 - Issuers and market sources continued to feel better about heading out with new offerings and completing sales on Tuesday.

New offerings were led by New York, which plans to price $965 million general obligation bonds.

The city expects to sell $165 million fiscal 2009 subseries A2 bonds through a competitive sale on Aug. 6.

The $800 million fiscal 2009 subseries A1 bonds will price in a negotiated sale the week of Aug. 4.

The bonds have serial maturities from 2010 through 2029.

JPMorgan is the senior manager of the negotiated sale.

Proceeds will be used for capital purposes.

Meanwhile, the Puerto Rico Housing Finance Authority led pricing news with the sale of $490.02 million in bonds on Tuesday, but pricing terms were not immediately available.

The $374.22 million capital fund modernization program subordinate bonds for Puerto Rico Public Housing Projects have serial maturities from Dec. 1, 2008 through Dec. 1, 2018.

The $115.8 million series 2008 housing revenue bonds for the Vivienda Modernization 1 LLC project are due Oct. 1, 2011.

JPMorgan was the senior manager of the negotiated sale.

Proceeds will be used by a new limited liability company to purchase 33 public housing projects and rehabilitate the properties for public housing.

Portland, Ore., prices with 4.57% TIC

Portland, Ore., saw heavy bidding Tuesday on its $79.68 million revenue bonds, which priced with a 4.5704% true interest cost from winning bidder Goldman, Sachs & Co., said Eric Johansen, debt manager.

Goldman Sachs won out of nine bids in the competitive sale.

"The bids ranged from the 4.57% up to 4.67%," Johansen said. "The market was off a little bit on the Treasury side, but it was still a pretty good bid under the circumstances."

The series 2008A utilities bonds (Aa1//) priced with 4% to 5% coupons to yield 2.14% to 4.9% from 2009 through 2033.

Proceeds will be used for water system capital improvements.

Lakeland, Fla., prices with 2.05% initial rate

Lakeland, Fla., moved ahead with its sale of $200 million variable-rate bonds.

The city priced $100 million variable-rate energy system revenue and refunding bonds with a 2.05% initial rate on Tuesday, said Jeff Stearnes, treasury manager.

"Sifma was at 2.34% last week, and we got a 2.05%. That's less than the index, though it will reset this Wednesday," he said.

The series 2008A weekly interest rate bonds (Aa1/AA+/AAA) were sold in a negotiated sale managed by Goldman Sachs.

The city also plans to price $100 million series 2008B daily variable-rate revenue and refunding bonds (Aa2/AA-/AA) on Wednesday.

The bonds will be sold in a negotiated sale managed by SunTrust Robinson Humphrey.

The bonds are due in 2037.

Proceeds will be used to repurchase obligations and provide new money for environmental remediation projects.

Snohomish School District

The Snohomish School District No. 201 in Washington state priced $103.087 million unlimited tax G.O. bonds on Tuesday, a market source said.

The series 2008 bonds were sold through a competitive sale that was won by JPMorgan.

Additional pricing terms will not be available until Wednesday, the source said.

San Diego County to price $345 million Wednesday

Coming up on Wednesday, San Diego County in California expects to price $345 million taxable pension obligation bonds, a source told Prospect News.

The series 2008A bonds (Aa3/AA/AA) will be sold in a negotiated sale through senior manager Citigroup Global Markets.

The county also expects to price $100 million taxable pension obligation bonds on Aug. 6.

The $50 million series 2008B1 and $50 million series 2008B2 variable-rate demand obligations are due Aug. 15, 2027.

The bonds (Aa3/AA/AA) will price initially with a weekly interest rate.

Citigroup Global Markets will manage the negotiated sale of the series 2008B1 bonds, and De La Rosa & Co. will manage the series 2008B2 bonds.

Proceeds from both series will be used to refund the county's outstanding series 2002B auction-rate pension obligation bonds.

Also coming up, the Imperial Irrigation District in California plans to price $250 million electric system refunding revenue bonds on Thursday, a source with the issuer told Prospect News.

The series 2008 bonds (Aa3//) will be sold to refund $42 million in outstanding series 1998 bonds and $175 million of outstanding commercial paper notes.

On the horizon

Looking ahead to new offerings, Harris County of Texas intends to price $330 million refunding bonds, according to a preliminary official statement.

The sale includes $130 million series 2008B, $100 million series 2008C and $100 million series 2008D permanent improvement refunding bonds.

Loop Capital Markets LLC is the senior manager of the negotiated sale.

Proceeds will be used to defease the county's series A1, B and D G.O. commercial paper notes.

The State of New York Mortgage Agency plans to price $167.84 million variable-rate and fixed-rate homeowner mortgage revenue bonds in four tranches, according to a preliminary official statement.

The $60 million series 157 variable-rate bonds are due in 2043.

The fixed-rate tranches include $10.695 million series 154 bonds due in 2018 and a term due 2023, $32.145 million series 155 bonds with serial maturities from 2009 through 2018 and a term due 2019 and $65 million series 156 term bonds due 2023, 2028, 2032 and 2047.

Goldman Sachs is the senior manager of the negotiated sale.

Proceeds will be used to purchase mortgage loans and pledged closing cost assistance loans and to refund and replace outstanding bonds.

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