Another heavy week of pricings ahead; Dormitory Authority of New York to price $968.245 million Monday

By Cristal Cody and Sheri Kasprzak

New York, June 20 - Issuers are moving forward with summer sales as hundreds of millions of dollars in offerings line up for the week of June 23, despite some issuers earlier claiming that pricing conditions are still not ideal.

Some issuers even indefinitely postponed offerings because of shaky market conditions, while others who are planning deals for the week have said the pricing date is up in the air.

Heading up the large slate of sales is a $968.245 million offering from the Dormitory Authority of the State of New York, which plans to price bonds the week of June 23, according to an updated sale calendar.

The sale includes $528.245 million mental health services facilities improvement revenue bonds that will price in five tranches, according to a preliminary official statement.

J.P. Morgan Securities is the senior manager of the negotiated sale.

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.

The authority also intends to price $440 million state personal income tax revenue bonds.

The series 2008A bonds (/AAA/AA-) have serial maturities from 2009 through 2028.

M.R. Beal & Co. is the senior manager of the negotiated sale.

Proceeds will finance grants to local school districts for facility projects that exceed existing state school building aid allotments as part of the Expanding our Children's Education and Learning (EXCEL) program.

Santa Clara Transportation bonds

Moving to upcoming sales, the Santa Clara Valley Transportation Authority in California intends to price $236.785 million in series 2008 variable-rate demand sales tax revenue refunding bonds, said a preliminary official statement released Friday.

The sale includes $59.86 million in series 2008A bonds, $58.975 million in series 2008B bonds, $58.975 million in series 2008C bonds and $58.975 million in series 2008D bonds.

The bonds are due April 1, 2036 and will be sold on a negotiated basis.

Goldman, Sachs & Co. is the lead manager for the 2008A bonds, Banc of America Securities is the lead for the 2008B bonds, JPMorgan is the senior manager for the 2008C bonds and Morgan Stanley is the lead for the 2008D bonds.

Proceeds from the deal will be used to refund the authority's series 2006 bonds.

The authority also plans to sell $168.585 million in series 2008 sales tax revenue refunding bonds on Wednesday.

The sale includes $67.565 million in series 2008A bonds, $50.51 million in series 2008B bonds and $50.51 million in series 2008C bonds. The bonds (//AA-) are due June 1, 2026.

Goldman Sachs is the senior manager for the 2008A bonds, Lehman Brothers is the lead manager for the 2008B bonds and Morgan Stanley is the lead for the 2008C bonds.

The proceeds will be used to refund the authority's series 2005B and series 2005C bonds.

University of Massachusetts offering

Also ahead in the week, the University of Massachusetts Building Authority plans to price its previously announced $116.475 million project revenue bonds on Tuesday, Steven Dansby, chief financial officer, said Friday.

The senior series 2008-2 bonds (/A+/A+) have serial maturities from 2009 through 2028 and terms due in 2033 and 2038.

Lehman Brothers is the senior manager of the negotiated sale.

Proceeds will be used to finance projects, including construction and renovation of university buildings at the Worcester and Amherst campuses.

Pennsylvania higher education bonds

Looking ahead to July, the Pennsylvania State System of Higher Education intends to price $138.855 million revenue bonds on July 9, a source with the issuer said Friday.

The series AH bonds (Aa3//) will price through the Pennsylvania Higher Educational Facilities Authority.

Proceeds will be used to fund capital projects at member campuses.

Also in July, Fort Smith, Ark., plans to sell $120.305 million water and sewer refunding and construction revenue bonds probably in July, a source said Friday.

The series 2008 bonds (/A/) have serial maturities from 2009 through 2023 and terms in 2028 and 2032.

The bonds are insured by Financial Security Assurance.

Stephens Inc. is the senior manager of the negotiated sale, and Morgan Keegan is the co-manager.

Proceeds will be used to refund the city's series 2002A bonds and to fund system improvements to the Mountainburg water treatment plant, neighborhood water lines and the Howard Hill elevated water storage tank.

Northern California power deal

On the horizon, the Northern California Power Agency intends to price $85.375 million hydroelectric project No. 1 revenue bonds, according to a preliminary official statement.

The $84.3 million series 2008C and $1.075 million series 2008D bonds will be sold in a negotiated sale managed by Citigroup Global Markets.

The bonds (A2/A-/A) are insured by Assured Guaranty Corp.

Proceeds will be used to refund the series 2002A and 2002B refunding revenue bonds.

Massachusetts Port offering

In other upcoming deals, the Massachusetts Port Authority plans to price $80 million in series 2008C revenue refunding bonds, said a preliminary official statement.

The bonds (//AA) are expected to price on Thursday, a sellside source familiar with the offering told Prospect News, but the date may be changed if market conditions are not favorable.

The bonds will be sold on a negotiated basis with Citigroup Global Markets as the senior manager and are due 2009 to 2025.

Proceeds will be used to refund an outstanding series of bonds.

Highland Park ISD sale

Highland Park Independent School District in Texas expects to price $70 million building bonds in a competitive sale on Thursday, according to a sale notice.

The series 2008 bonds have serial maturities from 2009 through 2028.

RBC Capital Markets is the district's financial adviser.

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

Oregon sells $200 million

In light pricing news from Friday, the State of Oregon announced the terms on its $200 million in series 2008A general obligation bonds in an official statement. The bonds priced Wednesday.

The bonds (Aa2/AA/AA) are due from 2011 to 2018 with a term bond due 2024. The coupons for the serial bonds range from 4.35% to 5.42%, all priced at par. The term bonds have 5.742% coupon, also priced at par.

The bonds priced with a 5.88% true interest cost.

Citigroup Global Markets and Merrill Lynch were the senior managers for the sale.

Proceeds will be used to construct an arena or related facilities at the University of Oregon.

New Jersey Authority prices with 4.72% TIC

The New Jersey Educational Facilities Authority released details Friday of the sale of $88.67 million revenue bonds, which priced with a 4.72% TIC.

The series 2008C William Paterson University of New Jersey bonds (Aaa/AAA/) priced with 3.25% to 5% coupons to yield 2.06% to 4.84%.

The bonds have serial maturities from 2009 through 2026 and term bonds in 2030, 2033 and 2038.

The bonds are insured by Assured Guaranty Corp.

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

Proceeds will be used to finance a three-story science hall addition for research space, classrooms and teaching labs and to refund the outstanding series 1998D revenue bonds.

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