Pricing action remains light; Long Island Power Authority to price $550 million in revenue bonds

By Cristal Cody and Sheri Kasprzak

New York, Sept. 24 - It was slim pickings again for new issue action Wednesday as issuers continued to eye rocky market conditions. Market insiders continued to point the finger at a wobbly market in light of recent meltdowns at Lehman Brothers and various other banks.

"It's scary out there," one sellside source said on Wednesday afternoon.

"No one wants to make a move. I'm sure it will get better over the next few weeks, but we're kind of at a standstill right now."

This sentiment echoes what many sellsiders noted earlier this week and even last week.

Meanwhile, not everyone is staying out of the market. Picking the pricing dates, however, is proving to be tricky for some.

The Long Island Power Authority in New York intends to price $550 million in new money and remarket $200 million electric system general revenue bonds once the market settles, a source with the issuer said Wednesday. But it still hasn't selected a sale and conversion date yet.

"It's going to be hard to say. The market is very uncertain right now," the source said.

The new money includes $350 million in series 2008A and $200 million in series 2008B general revenue bonds.

The series 2008A bonds have serial maturities from 2019 through 2025 and terms due 2033.

The series 2008B term bonds are due 2033.

The authority also plans to convert and remarket the $75 million series 2001B, $25 million series 2001C, $50 million series 2001M and $50 million series 2001N general revenue bonds.

The series 2001 bonds, due 2033, priced as auction-rate bonds and will be converted to a fixed interest rate.

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

Proceeds will be used to refund outstanding insured variable-rate bonds and for various capital purposes.

Henrico County G.O. improvement bonds

Some issuers, like Henrico County of Virginia, have opted to wait until the beginning of next month before heading into the market.

The county expects to price $95.85 million general obligation public improvement bonds on Oct. 7, according to a preliminary official statement released Wednesday.

The series 2008A bonds will price competitively.

The bonds have serial maturities from 2009 through 2028.

BB&T Capital Markets is the county's financial adviser.

Proceeds will be used to finance improvement projects for schools, fire stations, parks and roads.

Ohio State University sale ahead

Also ahead, Ohio State University intends to price $127.77 million variable-rate general receipts bonds, according to a preliminary official statement.

The series 2008B bonds (Aa2/AA/AA) are due in 2028.

The bonds will price with a weekly interest rate.

RBC Capital Markets is the senior manager of the negotiated sale.

Proceeds will be used to construct, repair and upgrade facilities and to retire the outstanding series H general receipts commercial paper notes.

Cabarrus County deal

In Wednesday's pricing action, Cabarrus County in North Carolina had been expected to price $56.57 million in series 2008C certificates of participation (Aa3/AA/AA-), but calls to the issuer for the details were not immediately returned.

The COPs are due from 2011 to 2029.

Proceeds will finance the construction and improvement costs of a 460-bed facility to provide long-term housing for county inmates.

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