Duke prices $500 million taxable bonds; New York's Triborough Bridge and Tunnel to bring $400 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Jan. 23 - The week in municipals rounded out with a large offering from North Carolina's Duke University and a somewhat smaller slate of upcoming deals.

The lower number of offerings didn't faze one sellside source reached Friday afternoon.

"We were sort of deluged there the first couple of weeks in January because so many issuers had held off on pricing in December or the latter part of '08," he noted.

"Looks like things are just slowing down naturally. I'm not too concerned about it. We're still seeing some good-sized deals coming up."

The Triborough Bridge and Tunnel Authority of New York certainly has a large offering up for grabs this week. The authority is scheduled to bring $400 million in series 2009 revenue bonds to market on Tuesday.

The bonds (Aa3/AA-/AA-) will be sold on a negotiated basis through Barclays Capital Inc. and Loop Capital Markets LLC.

The deal includes $150 million in series 2009A-1 general revenue mandatory tender bonds and $250 million in series 2009A-2 general revenue bonds.

Proceeds will be used to finance the authority's upcoming projects and refinance existing projects.

Duke sells $500 million

Meanwhile, in pricing action, Duke University of North Carolina released the pricing details on $500 million in series 2009A taxable bonds (Aa1/AA+/). The bonds priced Thursday, according to an official statement.

The sale included $250 million in bonds due April 1, 2014 and $250 million in bonds due April 1, 2019. The 2014 bonds have a 4.2% coupon, priced at 99.967, and the 2019 bonds have a 5.15% coupon, priced at 99.829.

J.P. Morgan Securities Inc. and Goldman, Sachs & Co. were the lead managers.

Proceeds will be used for working capital.

Baton Rouge deal

Looking to other upcoming sales, Baton Rouge, La., is expected to sell $110 million in series 2009A road and street improvement sales tax revenue bonds Wednesday, said a preliminary official statement.

A retail order period for the sale will begin Tuesday.

The bonds (Aa2/AAA/AAA) will be sold on a negotiated basis with Citigroup Global Markets Inc. and Merrill Lynch & Co. as the lead managers.

The bonds are due 2010 to 2030.

Proceeds will be used to widen existing roads in Baton Rouge as well as construct new roads.

Also on Wednesday, the North Carolina Medical Care Commission is expected to sell $100 million in series 2009 health care facilities revenue bonds for WakeMed, said a calendar of upcoming sales.

The bonds (Aa2//AA-), which are due 2010 to 2022 with term bonds due 2033 and 2038, will be sold through lead manager Citigroup Global Markets.

The bonds are due 2010 to 2022 with term bonds due 2033 and 2038.

Proceeds will be used to construct and renovate hospital buildings and a parking garage and make a deposit to a debt service reserve fund.

NYC IDA to sell bonds

In other upcoming sales for the week, the New York City Industrial Development Agency plans to price its previously announced $82.28 million in series 2009 pilot bonds for a new stadium in Queens on Wednesday, said a calendar of sales.

The bonds (Aa2/AAA/) will be sold through senior manager Citigroup Global Markets, and maturities range from 2010 to 2019 with a term bond due in 2030.

Proceeds will be used to construct Citi Field, the future home of the New York Mets.

Indiana Finance's $60.1 million deal

The Indiana Finance Authority plans to price $60.1 million in revenue refunding bonds either Wednesday or Thursday, "depending on market conditions," according to Scott Davis, director of debt management for the authority.

The issue will be broken into two tranches.

The $46.245 million of series A notes will support the Wabash Valley Correctional Facility, while the $13.855 million of series B notes will support the Miami Correctional Facility.

Davis hopes to find "spreads over [Municipal Market Data] that are competitive with comparable credits in the market [that] week," he said.

The series A bonds carry maturities from 2010 to 2019. The series B bonds mature in 2012 and 2013.

Morgan Stanley and City Securities Corp. will act as underwriters for the negotiated issue.

Georgia's G.O. sale

Looking out on the horizon, the State of Georgia plans to sell $613.85 million in series 2009 general obligation bonds sometime in February, said a preliminary official statement released Friday.

The sale includes $61.795 million in series 2009A bonds and $552.055 million in series 2009B bonds.

The bonds will be sold on a negotiated basis with Merrill Lynch as the senior manager.

The series 2009A bonds are due 2010 to 2014, and the 2009B bonds are due 2010 to 2029.

Proceeds will be used to improve and develop lands, waterways, buildings, highways and state facilities.

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