Wake County cancels $484 million G.O.s; Wyandotte County/Kansas City prices with 2.98%-6.53% TICs

By Cristal Cody

New York - Issuers continued to shy away from announcing pricing dates for new offerings, but eventually need should outweigh market concerns, a source with a major bank holding company told Prospect News.

"There's a lot of investors with cash waiting to invest and a lot of borrowers with needs," the source said.

"At some point, we'll see supply and demand approach equilibrium," he said. "There's a whole lot of price strategy going on right now. People don't know what their investments are worth, and investors are afraid to commit their cash to new deals."

Wake County of North Carolina has decided to seek alternative financing after it put off a competitive sale of $484 million in general obligation bonds on Sept. 23 because of a lack of market response. Fitch removed the bonds' ratings on Thursday.

The Commonwealth of Massachusetts also put off the competitive sale expected on Thursday of $750 million in G.O. revenue anticipation notes, a source with the finance division said, but additional details were not immediately available.

The $375 million series 2008B notes will mature April 30, 2009, and the $375 million series 2008C notes will mature May 29, 2009.

Proceeds will be used to finance current operating expenses.

Wyandotte County/Kansas City prices

The Unified Government of Wyandotte County/Kansas City in Kansas completed its competitive sale on Thursday of $57.23 million in G.O. public improvement bonds and municipal temporary notes, according to a market source.

The $6.35 million series 2008C bonds priced with a 5.006% true interest cost from winning bidder George K. Baum & Co. The bonds priced with 3.75% to 5.25% coupons from 2009 through 2028.

The yields were not available.

The $2.088 million series 2008D bonds priced with a 6.531% TIC from winning bidder Stifel Nicolaus & Co. The bonds priced with 5% to 7% coupons from 2009 through 2028.

The $2.7477 million series 2008 VI notes priced with a 2.984% TIC from winning bidder Commerce Bank. The notes, due April 1, 2009, priced with a 2.4% coupon.

The $44.884 million series 2008 VII notes priced with a 5.072% TIC from Citigroup Global Markets. The notes, due in 2010, priced with a 5% coupon.

The $897,923 series 2008 VIII notes priced with a 4.842% TIC from winning bidder Dewaay Financial Network. The notes priced with a 4.5% coupon and are due in 2010.

The $262,748 series 2008 IX notes priced with a 3.226% TIC from winning bidder UMB Bank, NA. The notes, also due in 2010, priced with a 2.6% coupon.

Proceeds will be used for sewer and public building improvements and county bridge costs.

Salem Housing authority to price

Coming up in new offerings on Tuesday will be a $200 million variable-rate revenue bond sale from the Salem Housing Finance Authority in Oregon, according to a sale calendar.

The series 2008 bonds will be sold through a negotiated sale managed by Merrill Lynch & Co.

Proceeds will be used to refund outstanding debt and for project costs.

Illinois Finance Authority OKs $1.986 billion

Also on the horizon are $1.986 billion in bond authorizations approved by the Illinois Finance Authority for new offerings in business, community and health care.

The authority made the approvals in a September board meeting for projects such as $150 million for the Art Institute of Chicago, $375 million for Rush University Medical Center Obligated Group, $275 million for Silver Cross Hospital and $450 million for the Carle Foundation.

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