Municipal market mixed; Utah prices $394.36 million; Pitt Panthers bringing $424.58 million

By Cristal Cody and Aaron Hochman-Zimmerman

New York, March 3 - Municipal trading mimicked the equity rollercoaster on Tuesday and ended "kind of mixed," a trader said.

Monday's flight to quality gave "a boost to the Treasury side," he said, but now traders are holding on to their cards in what is developing into "a pause before this is going to continue," he said.

Investors are hesitant to move until the market picks a definitive direction, up or down, he said.

"As long as equities remain sideways, then everything will just kind of drift," he said.

As for new issues, the market will tend to shy away from the lower-rated paper, he said.

The overall specter of risk aversion is more conducive to products like Tuesday's $394.36 million from the State of Utah or the $515 million expected from Maryland on Wednesday.

Utah prices $394.36 million

The State of Utah priced $394.36 million series 2009A general obligation bonds, according to state treasurer Richard Ellis.

The sale was originally expected to be $430 million.

Still, "it went very well," Ellis said as the state still managed to draw enough revenue to fund its highway projects.

The bonds priced with a true interest cost of 3.5263916% and maturities from 2010 to 2024.

Morgan Stanley & Co. Inc. acted as lead underwriter for the negotiated deal.

Proceeds will be used to pay for highway construction or reconstruction projects.

Vermont's mountain of green

The State of Vermont priced $125 million series 2009A G.O. bonds (Aaa/AA+/AA+) on Monday, according to Keisha Belinsantif, associate underwriter with Citigroup Global Markets Inc.

The deal was upsized from $50.5 million and drew a 4.6% yield for the long bond due in 2029.

"It went very well," Belinsantif said about the bonds, which were all sold to the retail market.

"This name doesn't come to the market very often," she said, but it is a well-regarded issuer with its high tax rate.

The revenues make "the benefits more pronounced there," she said.

Citigroup acted as lead underwriter for the negotiated deal, which carries serial maturities from 2010 to 2029.

Proceeds will be used for various projects through the state, including for natural resources, agriculture, criminal justice and fire service training councils.

Pitt Panthers to price $424.58 million

March is shaping up to be packed with sales, including a large offering from the University of Pittsburgh.

The university plans to sell $424.575 million in refunding and capital project bonds (Aa2/AA/), according to a preliminary official statement.

The sale includes $139.575 million in series 2009A refunding bonds and $285 million in series 2009B university capital project bonds.

The series 2009A bonds have serial maturities from 2010 through 2012 and 2014 through 2022.

The series 2009B bonds have serial maturities in 2012 and 2014 through 2028 and a term due 2031.

Barclays Capital Inc. is the senior manager of the negotiated sale.

The proceeds will be used to finance university projects and to refund the $150.379 million outstanding from the series 2007A capital project and refunding bonds.

Mid-March madness

Deeper into the month's pricing brackets, Wichita, Kan., intends to price $108.31 million G.O. refunding bonds and temporary notes through a competitive sale on March 10, according to a notice of sale.

The sale includes $29.23 million in series 2009A sales tax refunding bonds, $20.02 million in series 2009B refunding bonds and $59.06 million in series 228 improvement temporary notes.

The series 2009A bonds have serial maturities from 2010 through 2017, and the series 2009B bonds have serial maturities from Dec. 1, 2009 through Dec. 1, 2016.

The notes are due April 8, 2010.

The proceeds will be used to provide temporary financing for capital improvements and to refund the city's series 2002 sales tax bonds, series 754 G.O. bonds sold in 1999, series 763 G.O. bonds sold in 2000 and series 764 and series 766 G.O. bonds sold in 2001.

Also on March 10, Hamilton County in Tennessee expects to sell $55 million in G.O. bonds and notes through a competitive sale.

The $31.5 million series 2009 bonds (Aa1//AA+) have a 6% maximum coupon bidding parameter set.

The bonds have serial maturities from 2010 through 2024.

The $23.5 million series 2009 taxable bond anticipation notes (MIG 1//F1+) due March 1, 2010 have a 5% maximum coupon set for bids.

Public Financial Management, Inc. is the financial adviser.

The proceeds will be used to refund outstanding commercial paper bond anticipation notes and to finance public works projects, including for roads and water and sewer facilities.

Ohio to sell $75 million for University of Dayton

In another sale set for next week, the State of Ohio expects to price $75 million in revenue bonds for the University of Dayton tentatively on March 10, a sellside source told Prospect News.

"It's sometime next week and looking like March 10," the source said Tuesday.

The previously announced series 2009 higher education facility bonds have serial maturities from 2010 through 2028 and terms due 2032 and 2039, according to a preliminary official statement.

Morgan Stanley is the senior manager of the negotiated sale, and PNC Capital Markets LLC is the co-manager.

The proceeds will be used to finance university improvements, partially refund the series 1997 and series 1998 revenue bonds and to repay a bank loan made by Wells Fargo Bank, NA.

And coming out of Michigan, the Michigan Municipal Bond Authority plans to price $67.465 million in series 2009B local government pooled loan program revenue bonds on March 10, the issuer told Prospect News.

The largest tranche is from the Charter County of Wayne, which will sell $37.385 million local project bonds with serial maturities from Nov. 1, 2009 through Nov. 1, 2018 and terms due 2026 and 2028, said Kathy O'Keefe, spokesman for the authority.

The remaining pool includes $1.195 million revenue sharing bonds with serial maturities from Nov. 1, 2009 through Nov. 1, 2018 and terms due 2023 and 2028; $23.57 million state qualified school bonds with serial maturities from 2010 through 2016; and $5.315 million school program bonds with serial maturities from 2010 through 2014.

Fifth Third Securities will manage the negotiated sale.

The proceeds will be used to purchase municipal obligations.

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