Billions in offerings planned for week ahead; Massachusetts prices $750 million RANs with 2.2% yields

By Cristal Cody and Sheri Kasprzak

New York, Oct. 9 - Pricing activity may be getting back to normal. Several issuers Thursday announced plans to sell their bonds in the coming week.

In recent weeks, turmoil in the marketplace has led several issuers to hold off on announcing pricing dates until market conditions improve.

The State of California leads the upcoming activity with plans to price $4 billion in revenue anticipation notes on Thursday, according to a sale calendar.

The series 2008-09A notes are due in June 2009.

The state also expects to sell an additional $3 billion in bonds in the 2008-2009 fiscal year.

Banc of America Securities and Goldman, Sachs & Co. are the senior managers of the negotiated sale.

Proceeds will be used for the state's cash flow management needs.

Also on Thursday, the Oklahoma Municipal Power Authority expects to price $105.765 million in revenue bonds, a source told Prospect News.

The series 2008A bonds (A2/A/) have terms due 2029 and 2039.

JPMorgan is the senior manager of the negotiated sale.

The proceeds will be used to finance a portion of construction and acquisition costs for an ownership interest in two electric generating plants and to fund other capital projects and interest on the bonds during the construction period.

Massachusetts prices $750 million RANs

In pricing action, the Commonwealth of Massachusetts sold its $750 million in general obligation revenue anticipation notes with 2.2% yields through a negotiated sale after two previous attempts to hold competitive sales, according to official statements distributed Thursday.

The $375 million series 2008B notes mature April 30, 2009, and the $375 million series 2008C notes mature May 29, 2009.

Both series priced Wednesday with 4% coupons.

Massachusetts had attempted to sell the notes (MIG 1/SP-1+/F1+) last week and again on Tuesday.

Goldman, Sachs & Co. managed the sale of the series 2008B notes, and Citigroup Global Markets managed the series 2008C notes.

Proceeds will be used to finance current operating expenses.

California DOT sells $97.64 million

Elsewhere, the California Department of Transportation priced $97.635 million in federal highway grant anticipation bonds with a 4.72% true interest cost, a source said Thursday.

The series 2008A bonds (Aa3/AA-/AA-) have serial maturities from 2009 through 2020.

Additional pricing terms were not immediately available.

JPMorgan was the senior manager of the negotiated sale.

Proceeds will be used to finance two California highway rehabilitation projects in the cities of Auburn and Truckee.

Midweek sales

Moving back to upcoming offerings, the State of Ohio is scheduled Wednesday to offer $385 million in infrastructure project revenue bonds.

The series 2008-1 bonds (Aa2/AA/AA-) also will be offered through retail orders on Tuesday, a source told Prospect News.

The bonds have serial maturities from 2009 through 2020.

Morgan Stanley is the senior manager of the negotiated sale.

The proceeds will be used to finance highway and bridge projects.

Massachusetts Bay to sell $350 million

Another offering slated for Wednesday comes from the Massachusetts Bay Transportation Authority, which is expected to price $350 million in series 2008A assessment bonds, said a preliminary official statement. The pricing date, according to a sellside source reached Thursday, is tentative.

The bonds (Aa1/AAA/) will be sold on a negotiated basis with JPMorgan, Citigroup Global Markets and Barclays Capital as the senior managers.

The bonds are due 2013 to 2029.

Proceeds will be used for the repayment of commercial paper notes, the payment of capital costs and a deposit to a debt service reserve fund.

Missouri environmental bonds ahead

Also on Wednesday, the Missouri State Environmental Improvement and Energy Resources Authority tentatively plans to price $72.065 million in water pollution control and drinking water revenue bonds, a source told Prospect News.

The series 2008A bonds (Aaa) will price in a negotiated sale managed by George K. Baum & Co.

Proceeds will be used to finance new water pollution control and drinking water loans.

Washington University bonds

Looking a bit farther ahead, Washington University of St. Louis in Missouri intends to sell $190 million in series 2008A educational facilities revenue bonds, said a preliminary official statement.

The bonds will be sold through senior managers JPMorgan and Morgan Stanley. The co-managers are Banc of America Securities, Edward Jones and Wells Fargo Brokerage Services.

The maturities on the bonds have not been set at this time.

Proceeds will be used to finance, refinance or reimburse the university for the construction of additions or renovations to the university's educational facilities and health facilities.

New York mortgage sale

Also ahead, the State of New York Mortgage Agency plans to price $120 million in homeowner mortgage revenue bonds, said a preliminary official statement.

The bonds will be sold on a negotiated basis with JPMorgan as the senior manager for the offering. JPMorgan is the underwriter for the series 159 bonds.

The sale includes $60 million in fixed-rate, non-AMT series 158 bonds and $60 million in variable-rate, non-AMT series 159 bonds.

The series 158 bonds are due from 2009 to 2018 with term bonds due 2028 and 2032.

The series 159 bonds are due Oct. 1, 2038.

Proceeds will be used to redeem and replace existing obligations of the agency.

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