Bay Area Toll Authority to sell $715 million; King County, Wash., sells $350 million with 5.32% TIC

By Cristal Cody

Springdale, Ark., July 28 - New offerings got off to a sleepy start Monday but activity picked up in the afternoon as issuers became more confident.

Sizable deals were led by the Bay Area Toll Authority in California, which expects to price $715 million toll bridge revenue bonds on Aug. 6, the issuer said Monday.

Another issuer had been waiting for the markets to improve since early July before deciding on a sale date.

The North Harris County Regional Water Authority in Texas now plans to price $241.16 million senior lien revenue bonds on Thursday.

The authority's board approved the preliminary official statement on July 7 but waited until the end of the month before moving forward with a sale date.

"They felt better about it today, so it looks like we'll do it," a source familiar with the sale told Prospect News. "The pricing date we're shooting for right now is Thursday, but it's depending on how the market goes."

The series 2008 bonds (/A+/) have serial maturities from 2013 through 2038.

First Southwest Co. is the senior manager of the negotiated sale.

Proceeds will be used to finance the design, acquisition and construction of regional water production, pumping, distribution, storage and administrative facilities, to fund 24 months of capitalized interest and to fund a debt service reserve fund or surety bond for the series 2008 bonds.

Austin Community College

Also coming up on Thursday are $119.425 million lease revenue bonds from Austin Community College District Public Facility Corp. in Texas, a source told Prospect News.

The series 2008 bonds (Aa3/AA/) have serial maturities from 2010 through 2033.

Wachovia Bank, NA, is the senior manager of the negotiated sale.

Proceeds will be used for acquisitions, construction and equipment at the Round Rock Campus.

King County prices $350 million

King County in Washington led pricing news on Monday with the sale of $350 million series 2008 sewer revenue bonds with a 5.3185% true interest cost, a market source told Prospect News.

"It was a good day for the Treasury bonds and we sold in a pretty good market," the source said. "The result was fractionally higher than we assumed, but it was close enough that we're comfortable with the results."

The bonds (Aa3/AA+/) were sold with 5.5% coupons to yield 3.89% to 4.95% for the serial maturities from 2017 through 2033.

The 2038 term priced with a 5% coupon to yield 5.12%; the 2040 term priced with a 5.125% coupon to yield 5.16%; the 2043 term priced with a 5.75% coupon to yield 5.25% and the 2048 term priced with a 5.25% coupon to yield 5.37%.

Citigroup Global Markets was the winning bidder in the competitive sale.

Proceeds will be used to construct and improve sewers.

Texas A&M prices with 2.97%-2.99% TICs

The Board of Regents of Texas A&M University System sold $65.3 million flexible-rate notes in competitive sales on Monday, according to information released to Prospect News.

The permanent university fund notes (Aaa/AAA/) were an installment of a $125 million note authorization.

The $52 million notes with a mandatory tender date of Sept. 17, 2008 priced with a 2.97% TIC in a competitive sale won by Citigroup Global Markets. The notes priced with a 3% coupon to yield 2.95%.

The $13.3 million notes, which have a mandatory tender date on Aug. 14, 2008, priced with a 2.9943% TIC from winning bidder Goldman, Sachs & Co. The notes priced with a 3% coupon to yield 2.95%.

Proceeds will be used to make improvements to university facilities.

In other sale news, Cleveland, Ohio, priced $59.96 million subordinate lien unrestricted income tax bonds on Monday, but the final sale terms were not immediately available, a source told Prospect News.

The series 2008 police and fire pension payment bonds have serial maturities from 2009 through 2024.

Morgan Stanley was the senior manager of the negotiated sale.

Proceeds will be used to refund the city's series 1994 variable-rate refunding bonds and to fund interest on the series 2008 bonds for six months.

Milwaukee Metropolitan Sewerage District

In other sale news, the Milwaukee Metropolitan Sewerage District intended to price $70 million in series 2008F general obligation sewerage system bonds on Monday, but calls to confirm the sale were not immediately returned.

The bonds were sold on a competitive basis with Robert W. Baird and Bagley Financial Corp. as the financial advisers.

The bonds are due from 2009 to 2028.

Proceeds will be used to finance the district's capital budget through 2008.

Bay Area Toll

Back to the upcoming Bay Area Toll Authority bonds, the series 2008F1 bonds (Aa3//) will be sold in a negotiated sale managed by lead underwriters Citigroup Global Markets and Merrill Lynch & Co., chief financial officer Brian Mayhew said.

Proceeds will be used to refund all $507 million of the authority's outstanding Ambac-insured auction-rate securities and $150 million in Ambac-insured variable-rate bonds.

Also in August, Orange County in California intends to price $80 million tax and revenue anticipation notes on Aug. 7, the issuer said Monday.

The series 2008/2009 notes (MIG 1//) will have a pre-pricing on Aug. 6, said Thomas Beckett, public finance manager.

De La Rosa & Co. is the senior manager of the negotiated sale.

Proceeds will be used to fund cash flow requirements for the county's general fund.

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