Virginia prices $265.62 million G.O.s; Massachusetts to sell $552.755 million G.O. refunding bonds

By Sheri Kasprzak

New York, Nov. 14 - Activity for the coming week is already heating up even as issuers priced billions in offerings this past week. The middle of the week is particularly heavy for new offerings, with billions in sales planned for Wednesday alone.

"It seems like everything that would have priced back in September and October is starting to price now that investors are flocking over to bonds," said one sellside market source reached Friday.

"Market conditions are getting somewhat better, so that's helping."

Among the billions in sales from this past week was a $265.62 million sale of series 2008B general obligation bonds from the Commonwealth of Virginia.

A source at the issuer said Friday that the bonds (Aaa//AAA) priced Thursday with only retail investors participating.

The bonds were sold through lead managers Merrill Lynch & Co. and BB&T Capital Markets.

The bonds are due 2009 to 2033 with coupons from 3% to 5% and yields from 1.08% to 5.11%. The offering included split coupons from 2011 to 2021.

Proceeds will be used for capital projects, including educational, park and recreational facilities, as well as for revenue-producing capital projects at the commonwealth's higher educational institutes. The remainder will be used to refund existing obligations.

Carroll County's sale

Carroll County in Maryland priced $82.034 million in series 2008 G.O. consolidated public improvement bonds on Thursday, said Robert Burk, the county's chief financial officer.

The bonds were sold on a competitive basis with Citigroup Global Markets winning the bid.

The bonds are due 2011 to 2028 with coupons from 3.25% to 5% and yields from 2.55% to 4.9%.

Proceeds will be used for the design, construction, acquisition and equipment of schools, roads, general government facilities, conservation projects, water and sewer projects, solid waste disposal projects and volunteer firefighting equipment.

Massachusetts's $552.75 million G.O. deal

Looking ahead, the Commonwealth of Massachusetts plans to sell its previously announced $552.755 million in series 2008A G.O. refunding revenue bonds on Tuesday, said a calendar of sales.

The bonds will be sold through lead manager Citigroup Global Markets.

The bonds are due 2009 to 2023 with term bonds due 2028 and 2032.

Proceeds will be used to refund the commonwealth's series 2007 bonds.

Also ahead in the week, the City of New York is expected to sell $400 million in series 2009E G.O. bonds on Wednesday, said a calendar of upcoming deals.

The bonds will be sold on a negotiated basis with Morgan Stanley as the senior manager.

The proceeds will be used for capital purposes.

Connecticut offering

In other upcoming pricings for the week, the State of Connecticut plans to price $300 million in series 2008A special tax obligation bonds Tuesday, according to a preliminary official statement.

The bonds will be sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The bonds are due 2009 to 2028.

Proceeds will be used for the completion of infrastructure projects throughout the state.

Elsewhere, the Municipal Electric Authority of Georgia is scheduled to price its previously announced $297.035 million in subordinated bonds on Wednesday, said a calendar of upcoming deals.

The bonds (//A+) will be sold on a negotiated basis with J.P. Morgan Securities Inc. as the senior manager.

The sale includes $285.595 million in series 2008D Project One subordinated bonds and $11.44 million in series 2008C general resolution project subordinated bonds.

Proceeds will be used to refund outstanding subordinated bonds, to fund the acquisition of nuclear fuel and to make a deposit to a debt service reserve fund.

Puerto Rico's reduced sale

In other upcoming deals, the Puerto Rico Municipal Finance Agency is set to price $240 million in series 2008A bonds on Wednesday, said a calendar of upcoming deals. The offering was cut from its previously planned size of $400 million.

The bonds (Baa3/BBB-/) will be sold through lead managers Merrill Lynch, Ramirez & Co. and RBC Capital Markets.

The bonds are due 2009 to 2018 with term bonds due 2023, 2028 and 2033.

Proceeds will be used to purchase Puerto Rico G.O. bonds and notes from municipalities and the Government Development Bank.

Moving to the Mid-Atlantic, the Virginia Resources Authority is scheduled to price $218.985 million in series 2008 infrastructure revenue bonds on Wednesday, according to a preliminary official statement.

Citigroup Global Markets is the senior manager for the negotiated offering.

The bonds are due 2009 to 2023 with term bonds due 2028, 2033 and 2038.

The sale includes $150.375 million in series 2008B senior bonds (Aaa/AAA/AAA) and $68.61 million in series 2008B subordinate bonds (Aa2/AA/).

Proceeds from the sale will be used for the financing or refinancing of public water, wastewater, parks and recreation, public safety, transportation and local government projects throughout the state.

Palm Beach solid waste deal

In other news Friday, the Solid Waste Authority of Palm Beach County in Florida has delayed the sale of its $214.875 million in series 2008A improvement revenue bonds (Aa3/AA/) until Monday, according to an offering calendar.

The bonds were originally scheduled to price Thursday.

Citigroup Global Markets is the lead manager for the negotiated deal.

The offering is part of a $343.57 million sale that also includes $128.695 million in series 2008B bonds. The pricing date could not be determined for the 2008B bonds Friday.

The 2008A bonds are due 2009 to 2024.

Proceeds will be used for the refurbishment of a waste-to-energy facility, the design of a new resource recovery facility, the construction of a new transfer station, the acquisition of a landfill site and a deposit to a debt service reserve fund.

Chicago Transit deal ahead

Also coming up, the Chicago Transit Authority is gearing up to price $175 million in series 2008A capital grant receipts revenue bonds on Wednesday, according to a sales calendar.

The bonds (A2/A/A) will be sold through senior managers Siebert Brandford Shank & Co. and J.P. Morgan Securities.

Proceeds will be used for construction projects in the city's transit system.

In the Southeast, the Tennessee State School Bond Authority plans to price its previously announced $169.77 million in series 2008B higher educational facilities second program bonds on Tuesday, said a calendar of upcoming sales.

The bonds (Aa2/AA/AA) will be sold on a negotiated basis with J.P. Morgan Securities and Banc of America Securities as the lead managers.

The bonds are due 2009 to 2038.

Proceeds will be used for capital improvement projects at higher educational facilities in the state.

Missouri transportation sale

In other upcoming deals, the Missouri Highways and Transportation Commission is expected to sell $150 million in series 2008A federal reimbursement state road bonds on Monday, according to a preliminary official statement.

The bonds (Aa2/AA/AA-) will be sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The bonds are due 2011 to 2025.

Proceeds will be used to reimburse the state for the costs of road improvements.

Dasny deal coming up

Looking a bit further ahead, the Dormitory Authority of the State of New York plans to price $668.5 million in series 2008 mental health services facilities improvement revenue bonds, said a preliminary official statement.

The bonds (/AA-/A+) will be sold through lead manager J.P. Morgan Securities.

The deal includes $595.22 million in series 2008F and $73.28 million in series 2008G bonds.

Proceeds will be used to refund outstanding obligations.

Puerto Rico long bonds trade

Moving to secondary market action, one trader said he has seen a lot of demand for a long-end bond from the Commonwealth of Puerto Rico.

The commonwealth's series A 5.5% bonds due 2034 were seen trading between 5.214% and 5.497% on Friday, the trader said.

"There seems to be a lot of demand for that one bond," he said. "I'm not exactly sure what's pushing it, but it's trading pretty well today."

In other trades, the Children's Hospital of Wisconsin's 5% 2028s were seen trading at 6.297%.

"This week, there has been more interest in the long end," the trader noted.

On the shorter end, New Mexico State Hospital Equipment Loan Authority's series 2008A bonds were in play Friday. The 5% 2010s were seen trading at 3.75%, and the 5% 2011s were seen trading at 4.07%. The 5% 2012s were seen trading at 4.4%, and the 5.25% 2013s were seen at 4.6%. The 5.25% 2014s were seen trading at 4.77%, and the 5.25% 2015s were seen at 4.96%.

On the long end of the New Mexico bonds, the 6.125% 2028s were seen trading at 6.47%, and the 6.375% 2032s were seen at 6.63%.

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