Washington's $823.09 million G.O.s to price in July; Port of Houston sells $234.63 million bonds

By Cristal Cody and Sheri Kasprzak

New York, June 27 - As the month winds down, pricing activity is also starting to wind down.

One market source said Friday that market conditions may be scaring away some issuers.

"It's a tough market out there," he said. "Some may be leery about doing anything until the market settles down again."

Later in July, however, some issuers are planning to sell some rather large deals, including Washington. The state plans to come out with an $823.09 million sale of general obligation bonds.

The bonds, according to a preliminary official statement, will price competitively on July 9.

The sale includes $492.505 million series 2009A various purpose G.O. bonds, $260 million series 2009B motor vehicle fuel tax G.O. bonds and $70.585 million series 2009T taxable bonds.

The series 2009A and 2009B bonds have serial maturities from 2009 through 2033.

The series 2009T bonds are due 2009 through 2014.

Seattle-Northwest Securities Corp. and Montague DeRose and Associates are the state's financial advisers.

Proceeds will be used to fund capital projects, multimodal transportation and public school skill centers.

DASNY to sell $518 million

In upcoming sales slated for the week of June 30, the Dormitory Authority of the State of New York will sell its previously announced $518.365 million in series 2008 mental health services facilities improvement revenue bonds on Monday, said a calendar of upcoming deals.

The size of the sale was reduced from $528.245 million.

The bonds (/AA-/A+) will be sold on a negotiated basis with JPMorgan and Lehman Brothers as the lead managers.

The bonds are due 2009 to 2028 with term bonds due 2033 and 2038.

Proceeds will be used to refund outstanding bonds, to refinance state facilities and to fund facility projects including at the Greater Binghamton Health Center, Bronx Children's Psychiatric Center, Kingsboro Addiction Treatment Center and St. Vincent's Services.

On Tuesday, the West Contra Costa Unified School District in California plans to price $120 million G.O. bonds in a competitive sale, according to a sale notice.

The series B bonds (A2/A-/A-) were approved in a 2005 election.

The bonds have serial maturities from 2009 through 2035.

KNN Public Finance is the financial adviser.

Proceeds will be used to finance school construction and renovation projects approved by voters.

Harris County TANs

Elsewhere, Harris County, Texas, intends to price $395 million tax anticipation notes in a competitive sale on July 8, according to a sale notice.

The series 2008 notes are due Feb. 26, 2009.

First Southwest Co. is the county's financial adviser.

Proceeds will be used to fund the seasonal general fund cash flow deficit for the current fiscal year ending Feb. 28, 2009 prior to the collection of taxes.

Port of Tacoma variable rate

Also ahead, the Port of Tacoma in Washington expects to price $133 million variable-rate bonds on July 9, a source with the issuer said Friday.

The series 2008B subordinated lien revenue bonds (A1//) will be sold in a negotiated sale managed by Merrill Lynch & Co.

Proceeds will be used to finance the port's capital improvement program.

Oregon to sell $155 million

The Oregon Department of Administrative Services plans to price $155.285 million in series 2008 certificates of participation on Tuesday, said a preliminary official statement.

The COPs (Aa3/AA-/AA-) will be sold on a negotiated basis with Banc of America Securities as the senior manager.

The COPs are due from 2009 to 2028, 2033 and 2038.

The sale includes $140.5 million in series 2008A COPs and $14.785 million in series 2008B COPs.

Proceeds will be used to refund the department's outstanding series 1997B COPs.

Fresno to sell sewer bonds

In other upcoming sales, the Fresno Wastewater Enterprise in California expects to sell $161.115 million in series 2008A sewer system revenue bonds, said a sellside source familiar with the deal Friday afternoon.

The bonds (A2//A+) will be sold on a competitive basis on July 7. The bonds will be sold through the city of Fresno.

Proceeds from the sale will refund the enterprise's series 2000 variable-rate bonds, its series 1995 bonds and provide $51 million in new money.

Port of Houston's $234.63 million deal

In light pricing action from Friday, the Port of Houston Authority in Harris County, Texas, priced $234.63 million refunding bonds with a 5.799% true interest cost, a source familiar with the sale said Friday.

The series 2008A bonds (Aa1/AAA/) priced with 5.625% to 6.25% coupons to yield 5.29% to 5.71%.

The bonds have serial maturities from 2024 through 2038.

Merrill Lynch & Co. was the senior manager of the negotiated sale.

Proceeds will be used to refund outstanding commercial paper notes and the series 1998A port improvement bonds.

Highland Park ISD prices bonds

Highland Park Independent School District in Dallas County, Texas, priced $70 million building bonds with a 4.6432% TIC, a sellside source said Friday.

The series 2008 bonds (Aaa//) priced with 4% to 5% coupons to yield 2.3% to 4.9%.

The bonds have serial maturities from 2009 through 2028.

Prager, Sealy & Co. won the bidding in the competitive sale.

Proceeds will be used to acquire property and to fund construction, renovations and equipment for school buildings.

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