New Jersey brings $1.8 billion in TRANs; Puerto Rico to sell $250 million in G.O. bonds Thursday

By Cristal Cody and Sheri Kasprzak

New York, Sept. 3 - The state of New Jersey led Wednesday's pricing action, selling its $1.8 billion in series 2009A tax and revenue anticipation notes.

Meanwhile, the Commonwealth of Puerto Rico is planning to sell $250 million in general obligation bonds Thursday, heading up a day jam-packed with new issue offerings.

As predicted by one sellsider reached earlier this week, issuers may have let the short week prevent them from pricing early in the week, but a large portion of deals are being priced late in the week.

Meanwhile, the market had a decent tone Wednesday, a sellside source told Prospect News.

"It feels like there's little cash around, but it's still firm," the sellsider said. "It's better than last week. The Sifma index came down to 1.63%, so that's a pretty decent drop and daily averages came down as well."

In pricing activity on Wednesday, "early on some things came back and traded back with late cash," the sellsider said.

Looking ahead, the market should remain active.

"Where we are from a relative value perspective, rates should be relatively attractive and should entice some institutional money," the sellsider said. "So we should see a little more strength over the next week or two."

New Jersey's TRANs

Back to the New Jersey sale, the state sold the TRANs on a competitive basis with Citigroup Global Markets winning $50 million and Merrill Lynch taking the lion's share of $1.75 billion, according to an issuer source.

The notes are due June 25, 2009 and have a 3% coupon to yield 1.61%.

The insider told Prospect News there were 26 bids on the offering from nine different banks.

Proceeds will be used for general expenses for the state until taxes or other revenues are collected.

Olin College prices $94 million

In pricing activity on Wednesday, the Franklin W. Olin College of Engineering in Massachusetts sold $94 million variable-rate revenue bonds, a sellside source told Prospect News.

The $10 million series 2008C1 bonds priced with a 2.6% initial rate, and the $42 million series 2008C2 bonds priced with a 1.45% initial rate. The 2008C1 and 2008C2 bonds initially bear interest at the weekly rate.

The $42 million series 2008C3 bonds priced with a 1.3% initial rate. The 2008C3 bonds initially bear interest at the daily rate.

The bonds (Aaa/AAA/), due 2043, were sold through the Massachusetts Development Finance Agency.

Lehman Brothers managed the negotiated sale.

Proceeds will be used to refund the series A1 and A2 auction-rate securities.

Puerto Rico to sell G.O.s

Thursday's pricing activity will be led by a $250 million sale of G.O. bonds from Puerto Rico, according to a calendar of upcoming sales.

The bonds will be sold on a negotiated basis with Banc of America Securities, Morgan Stanley and UBS Financial Services Puerto Rico as the senior managers.

Proceeds will be used for public improvements.

Also on Thursday, the New Jersey Sports and Exposition Authority will price $197 million in series 2008B refunding bonds, according to a calendar of deals.

The bonds (A2/AA-/A+) will be sold on a negotiated basis with Citigroup Global Markets as senior manager.

The bonds are due 2009 to 2024.

Proceeds will be used to refund the authority's outstanding series 1992C bonds.

San Mateo sale ahead

Yet another sale planned for Thursday comes from the San Mateo County Joint Powers Financing Authority in California, which intends to sell its previously announced $148.285 million in series 2008A refunding lease revenue bonds, said a source familiar with the sale.

The bonds (Aa3/AA/) will be sold through lead managers Citigroup Global Markets and Lehman Brothers.

The bonds are due 2009 to 2028 with term bonds due 2033 and 2036.

Proceeds will be used to refund the authority's series 2003A, 2003B and 2003C bonds.

The Alaska Housing Finance Corp. plans to sell $80.88 million in series 2008B home mortgage revenue bonds on Thursday, according to a sales calendar.

The bonds will be sold through senior manager Goldman, Sachs & Co. with Citigroup Global Markets as the co-manager.

The bonds are due from 2009 to 2018 with term bonds due 2023, 2028, 2033 and 2038.

Proceeds will be used for first-time homebuyer mortgage loans.

Redmond 2J School G.O.s

Looking a bit farther ahead, the Redmond 2J School District in Oregon plans to sell $110 million G.O. bonds on Sept. 23, according to a sales calendar.

The series 2008 bonds are due 2034.

Seattle Northwest Securities Corp. will manage the negotiated sale.

Proceeds will be used for capital construction and improvements.

Also coming up later in the month, the Chemeketa Community College in Oregon expects to price $67 million G.O. bonds on Sept. 30, according to a sales calendar.

The series 2008 bonds are due 2029 and will be sold on a negotiated basis.

Proceeds will be used for capital construction and improvements.

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