Issuers announce pricing dates for new offerings even as $700 billion bailout plan is rejected

By Cristal Cody and Sheri Kasprzak

New York, Sept. 29 - Despite the fact that Congress rejected a proposed $700 billion bailout for the nation's major banks Monday, municipal issuers hit the market with announcements that they will price offerings in the coming week. The pricing dates for those sales have, at least tentatively, been set.

Last week, issuers across the country postponed sales, but enticing yields may be drawing investors back into the game.

"Investors were inclined to stay put in very short-term securities until further details of the bailout plan are revealed," a sellside source said in a market report.

"Almost all new issues scheduled were postponed as larger institutional buyers of tax-free municipal bonds were having trouble borrowing in the short-term market to finance long-term holdings. The generally higher yields prompted many retail investors to participate as high-grade tax-free yields surpassed taxable yields."

One of the largest deals coming up this week is from the Commonwealth of Massachusetts, which plans to price $750 million in series 2008 general obligation revenue anticipation notes, said a preliminary official statement released Monday.

The sale includes $375 million in series 2008B notes, which are due April 30, 2009, and $375 million in series 2008C notes, which are due May 29, 2009.

The notes will be sold on a competitive basis with proceeds going to finance current operating expenses.

Atlanta sale planned

Also ahead this week, the City of Atlanta is expected to sell its previously announced $120 million in series 2008 tax allocation bonds Tuesday, according to a calendar of upcoming deals released Monday.

The bonds will be sold on a negotiated basis with Wachovia Bank as the senior manager.

The sale includes $42.33 million in series 2008A bonds, $70.265 million in series 2008B bonds and $7.405 million in series 2008C bonds.

Proceeds will be used to finance or refinance redevelopment costs to acquire and develop an abandoned BeltLine rail corridor and create affordable workforce housing as well as to provide economic development incentives in the BeltLine tax allocation district.

Bucks County, Pa., also has a sale planned for Tuesday. The county intends to price $65 million in series 2008 G.O. bonds, according to a sales calendar.

The bonds (/AA+/) will be sold on a negotiated basis with PNC Capital Markets as the senior manager.

Proceeds will be used for capital projects, including the county's open space program, as well as for the refunding of outstanding obligations.

Metro Washington Airports deal

On Wednesday, the Metropolitan Washington Airports Authority is scheduled to price its previously announced $175 million in series 2008B revenue bonds, said a calendar of upcoming deals.

The bonds (Aa3/AA-/AA) will be sold through senior manager Siebert Brandford Shank & Co.

Proceeds will be used for capital project costs, capitalized interest on outstanding bonds, a deposit to the authority's reserve account and costs to terminate interest rate swap agreements with Wachovia Bank and the Bank of Montreal.

Orange County school board sale

Looking a bit further ahead, the School Board of Orange County in Florida is on the schedule to price $85 million in series 2008 tax anticipation notes Oct. 7, said a notice of sale released Monday.

The bonds (MIG 1) will be sold on a competitive basis with SunTrust Robinson Humphrey as the financial adviser.

The bonds are due Oct. 1, 2009.

Proceeds will be used for the payment of expenses ahead of the collection of ad valorem taxes.

Clark County redeems $50 million

In a ripple effect from the auction-rate securities fiasco from earlier this year, Clark County in Nevada redeemed the $50 million outstanding in the series 2003B variable-rate bonds issued for Southwest Gas Corp. Monday because of their failed auction-rate status, according to a filing with the Securities and Exchange Commission.

The industrial development revenue bonds originally were due in 2038.

Clark County redeemed the bonds with the proceeds from the Sept. 24 sale of $50 million in series 2008A variable-rate industrial development revenue bonds for Southwest Gas.

The series 2008A bonds priced at par and are due in 2038.

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