MTA Bridges and Tunnels puts off $1 billion sale; Southern California Metro Water prices $76.59 million

By Cristal Cody and Sheri Kasprzak

New York, July 10 - Even though pricing action on Thursday remained fairly active, the volume of new offerings is tapering off and one market source suggested the summer season may be to blame.

"It does tend to slow down a bit during the summer months," he said.

"I don't think there's anything necessarily wrong with the market or any trend to be concerned about. People are just off on vacation and things get a little slower in general."

And despite the large volume of deals priced this week, one of the two largest sales of the week, a $1 billion offering of revenue bonds from the MTA Bridges and Tunnels and the Triborough Bridge and Tunnel Authority in New York was pushed back to next Tuesday from Thursday, said a source with the issuer.

The $650 million series 2008C general revenue bonds and $350 million series 2008D subordinate revenue bonds also will price in a retail order period on Monday.

"It made no sense to try to sprint through it today," the source said.

The bonds have serial maturities from 2009 through 2028.

Citigroup Global Markets is the senior manager of the negotiated sale.

Proceeds will finance transit and commuter projects and refinance outstanding debt.

Southern California water sale

Looking at Thursday's pricing action, the Southern California Metropolitan Water District priced $76.59 million in series 2008C water revenue bonds, said Keith Norris, debt manager for the district.

The bonds (A2//AA+) were sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The bonds are due from 2009 to 2023 with coupons from 2.875% to 5% with yields from 1.6% to 4.11%.

Proceeds will be used for capital improvements to the district's water system.

Bell County, Texas beats target

Also on Thursday, Bell County, Texas priced $70.07 million in limited tax notes and refunding bonds with 4.02% to 4.43% true interest costs on Thursday, a source told Prospect News.

"We had budgeted for more than that, so it came in very conservatively," the source said.

The $38.6 million series 2008 limited tax notes priced with a 4.02% true interest cost.

The notes have maturities from 2009 through 2015.

The $31.47 million series 2008 limited tax refunding bonds priced with a 4.43% true interest cost.

The bonds have serial maturities from 2014 through 2026.

The notes were not insured. The bonds are insured by Financial Security Assurance

The sale of the bonds and notes (Aa3/AA/) is expected to be approved by the county on Monday.

RBC Capital Markets was the senior manager of the negotiated sales.

Proceeds will be used to refund $28.65 million of the county's series 2006 limited tax notes due 2009 through 2013 and to acquire land, purchase equipment and computer technology and build and repair county buildings, roads and parking lots.

North Texas Tollway $1 billion

The North Texas Tollway Authority System was expected to price $1 billion second tier revenue refunding bonds on Thursday.

The series 2008F bonds (A3/BBB+/) have serial maturities from 2030 through 2038.

Lehman Brothers was the senior manager of the negotiated sale.

Proceeds will be used to refund $697.29 million from the series 2007 bond anticipation notes. The authority plans to refund the remaining $767.065 million of the notes with an additional $947.905 million refunding sale by Nov. 19, 2008.

MEAG bonds

The Municipal Electric Authority of Georgia also planned to price $222.705 million subordinated bonds on Thursday.

The sale included $159.18 million series 2008A project 1 subordinated bonds and $63.525 million series 2008A general resolution projects subordinated bonds.

The pricing date also will depend on when the bonds' ratings are assigned, said James Fuller, chief financial officer.

The bonds have serial maturities from 2009 through 2021.

Morgan Stanley was the senior manager of the negotiated sale.

Proceeds will be used to refund the series 2000B general resolution projects subordinated bonds and commercial paper notes and the series 2000C, 2000D and 2000E project one subordinated bonds and commercial paper notes.

Calls for additional information were not returned by press time.

Miami-Dade sale

Elsewhere, Miami-Dade County in Florida priced $439 million in water and sewer refunding bonds (A1/A+/), but the pricing terms will likely not be available until Friday, said a source familiar with the offering.

The bonds were sold on a negotiated basis with RBC Capital Markets as the senior manager.

Proceeds will refund the county's series 1994 variable-rate bonds.

Also on Thursday, the Longview Independent School District of Texas confirmed it priced $129.998 million in series 2008 current interest and premium capital appreciation building bonds (/AAA/AAA). However, the pricing terms were not being released until Friday.

The sale, conducted through lead manager RBC Capital Markets, included $111.18 million in current interest bonds due 2009 to 2036 and $18.818 million in capital appreciation bonds due 2010 to 2018.

Maryland to sell G.O.s

Moving to upcoming offerings, the state of Maryland announced plans to price $415 million in series 2008 general obligation bonds on July 16.

The bonds will be sold on a competitive basis with Public Financial Management as the financial adviser, said a preliminary official statement.

The bonds are due from 2011 to 2023.

Proceeds will be used for the acquisition and construction of state facilities; capital grants to local governments for public schools, community colleges and jails; and matching fund loans and grants to local governments, nonprofit institutions and other entities for hospitals, cultural and other projects.

Nevada, San Francisco and Charleston

Several issuers are planning sales in the upcoming week.

Nevada intends to price $297.59 million general obligation bonds in five tranches in competitive sales on July 16, according to a preliminary official statement.

The sale includes $273.115 million series 2008C capital improvement and cultural affairs bonds due from 2013 through 2027; $12.705 million series 2008D natural resources bonds due from 2013 through 2028; $7.365 million series 2008E open space, parks and cultural resources bonds due from 2013 through 2021; $3.39 million series 2008F safe drinking water revolving fund matching bonds due from 2009 through 2018 and $1.015 million series 2008G water pollution control revolving fund matching bonds due in 2009 and 2010.

NSB Public Finance and JNA Consulting Group are the state's financial advisors.

Proceeds will be used to finance state capital improvement projects and award financial assistance to government groups and nonprofit organizations for projects that include the preservation or protection of historical buildings.

San Francisco sale planned

Also coming up, the City and County of San Francisco plans to price $119.35 million general obligation refunding bonds in a competitive sale on Tuesday, according to a sale notice.

The series 2008R3 bonds (Aa3/AA/AA-) will price for Laguna Honda Hospital.

The bonds have serial maturities from 2022 through 2030.

Public Financial Management is the city and county's financial advisor.

Proceeds will be used to refund the hospital's outstanding series 2005B, 2005C and 2005D variable rate general obligation bonds.

Looking ahead to the end of the week, the Charleston County School District in South Carolina intends to price $63.4 million tax anticipation notes in a competitive sale on July 17, according to a preliminary official statement.

The series 2008 notes (MIG 1//) are due April 1, 2009.

Public Financial Management is the district's financial advisor.

Proceeds will be used to fund operational expenditures during the fiscal year beginning July 1, 2008 and ending June 30, 2009, pending the collection of ad valorem taxes.

Oregon housing sale

Looking a little further ahead, the Oregon Housing Finance Agency plans to price $230 million in series 2008 conduit revenue bonds on July 29, said a calendar from the state.

The variable-rate bonds will be sold on a negotiated basis with Cain Brothers as the lead manager.

Proceeds from the sale will be used for construction at the Mirabella at South Waterfront projects, an assisted living facility in Portland.

In other Oregon-based news, the state is bringing to market $105 million in single-family housing revenue bonds on Aug. 11, said a calendar from the state.

The bonds will be sold on a negotiated basis with Bear, Stearns & Co. as the senior manager.

The proceeds will be used to purchase single-family home mortgages.

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