Michigan Municipal Bond Authority brings $680.58 million; Wisconsin DOT sells $185 million

By Cristal Cody and Sheri Kasprzak

New York, Aug. 5 - The Michigan Municipal Bond Authority led pricing action on Tuesday as market activity picked up.

Meanwhile, the Wisconsin Department of Transportation sold $185 million in series 2008A revenue bonds Tuesday.

Michigan's series 2008 revenue notes (/SP-1+/) are due Aug. 20, 2009, and the sale included $199.63 million in series 2008A1 notes with a 3% coupon to yield 1.63%. The deal also included $480.95 million in series 2008A2 notes with a 3% coupon to yield 1.7%.

Siebert Brandford Shank & Co. was the senior manager.

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

Wisconsin DOT prices bonds

The Wisconsin Department of Transportation priced $185 million in series 2008A revenue bonds on Tuesday, said Frank Hoadley, capital finance director for the state.

The bonds (//AA) were sold on a negotiated basis with Lehman Brothers as the senior manager. The co-managers were Ramirez & Co., Cabrera Capital Markets, Goldman, Sachs & Co. and Merrill Lynch.

The bonds are due 2010 to 2029 with 5% coupons and yields from 2.33% to 4.87%.

Proceeds from the sale will be used for various transportation projects.

Housing legislation bonds

About $500 million bonds are expected to be sold in several states under the housing legislation signed by President Bush last week.

Sales from North Dakota and Wyoming hit the market first on Tuesday.

The North Dakota Housing Finance Agency priced $111 million fixed-rate housing finance program bonds for the home mortgage finance program, the issuer told Prospect News.

"It was very questionable looking at the amount of paper in the market how it was going to pan out," Pat Nagel, chief financial officer, said of early pricing.

"As it ended up, we had one major investor jump in and buy a block of bonds and then a few others followed suit and we were able to sell most of the deal, all but $2.41 million out of $111 million."

The series 2008D bonds (Aa1) priced with 2.65% to 4.65% coupons for the serial maturities from 2010 through 2018.

The terms due 2023, 2028, 2033 and 2039 priced with 5.15% to 5.625% coupons.

The agency is pleased it sold the bonds before the upcoming housing bond sales from New York, Alaska, Rhode Island and New Jersey.

"When the investors know this much paper is coming to market, there's always the risk they're going to wait for rates to push up and get a better product," Nagel said.

Citigroup Global Markets was the senior manager of the negotiated sale.

Proceeds will be used to purchase first-time homebuyer loans.

Wyoming Community Development bond sale

In other pricing news from Tuesday, the Wyoming Community Development Authority was glad to get its $60 million sale of housing revenue bonds done.

"With all the housing bonds in the market from last week through next week, it was wise to get it in there and get it done," said Scott Hoversland, finance director.

The authority priced bonds with 2.35% to 4.625% coupons for the serial maturities from 2009 through 2018.

The terms due 2023, 2028, 2033 and 2038 priced with 4.5% to 5.625% coupons to yield 5.15% to 5.625%.

"We ended up paying a slight bit more within our range of where we wanted, but with some of our premium and discount term bonds we were able to get in where we expected," he said.

Merrill Lynch & Co. was the senior manager of the negotiated sale.

Proceeds will be used to purchase first-time homebuyer loans.

Dallas college district deal

Elsewhere, the Dallas County Community College District in Texas had been expected to price $220 million in series 2008 general obligation refunding and improvement bonds (//AAA), but calls to the issuer for the terms were not returned.

Southwest Securities and Ramirez & Co. were the lead managers.

The bonds are due 2009 to 2028 and proceeds will be used to refund the district's outstanding commercial paper notes, as well as construct and equip school buildings.

Pennsylvania Housing revenue bonds

Looking ahead, the Pennsylvania Housing Finance Agency plans to price $183.09 million series 2008-103 bonds single family mortgage revenue bonds, according to a preliminary official statement released Tuesday.

The $14.955 million series 2008-103A bonds have serial maturities from 2014 through 2018 and a term due 2022.

The $2.635 million series 2008-103B bonds are due in 2009 and 2010.

The $165.5 million series 2008-103C bonds have serial maturities from 2010 though 2018 and terms due 2023, 2028, 2033 and 2038.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

Proceeds will be used to refund outstanding single family mortgage revenue bonds and to purchase mortgage loans.

NYC Health and Hospitals sale

Also coming up, the New York City Health and Hospitals Corp. expects to price $271.24 million in series 2008A health system bonds the week of Aug. 11, said a preliminary official statement.

A sell-side source connected to the deal said the exact pricing date will be determined based upon market conditions.

"We're holding off on giving an exact date," he said.

"We're basically looking at the market conditions and seeing when it looks best. It will most likely be some time during the Aug. 11 week."

The bonds (//A) will be sold on a negotiated basis with Morgan Stanley and Citigroup Global Markets as the lead managers.

The maturities for the 2008A bonds have not been set at this time.

The sale is part of a $463 million offering that includes $191.76 million in series 2008B through 2008E bonds. The 2008B to 2008E bonds will be sold the week of Sept. 1.

Proceeds will be used to refund the corporation's series 2002B through 2002H auction- and variable-rate demand bonds and provide $100 million in funds for equipment acquisition.

Virginia delays $320 million sale

The Commonwealth of Virginia pushed back the sale of $320 million public facilities revenue bonds to September, a source with the state said Tuesday.

The $260 million series 2008B and $60 million series 2008C bonds were expected to price in early August.

"There are internal reasons for the delay and we just need a bit more time to package this and get it ready," the source said.

The bonds (Aa1) will price through the Virginia Public Building Authority.

Proceeds will be used to finance public building projects, including local and regional jail facilities.

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