Market conditions squelch new offerings for now; Northwest ISD prices $56.995 million with 4.66% TIC

By Cristal Cody and Sheri Kasprzak

New York, May 27 - The volume of new-issue offerings may be tapering off, said one market insider. There are a few reasons, including a backlog of ratings due to the auction-rate crisis, he said.

"We are seeing issuers have to put off their deals because of the ratings agencies," he said, alluding to the fact that the ratings agencies are trying to keep up with conversions and refinancing related to auction-rate debt.

"The market is starting to get shaky too. Treasuries are getting hit by economic news and munis seem to be following along. I think some issuers may hold off for now. We'll see."

In light pricing action Tuesday, Northwest Independent School District in Texas priced $56.995 million in unlimited tax school building and refunding bonds with a 4.66% true interest cost, according to the issuer's financial adviser.

Coupons at 4% to 5%

The series 2008 fixed-rate bonds (Aa3//AA-) priced with 4% to 5% coupons to yield 2.43% to 4.89%, said Jeff Robert, senior vice president at First Southwest Co.

"It was a little sluggish," Robert said of Tuesday's market. "But, we got the deal done, so we're happy with the result. I don't think it was the absolute best time, but from a historical perspective, it was. Rates are still at historically low levels, if you look over the last 10 years it's still a very good interest rate market."

The bonds have maturities from 2010 to 2013 and 2016 through 2033.

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

Proceeds will be used to finance the construction of new school facilities and to refund a portion of the series 1990 and 1997 building and refunding bonds.

Citizens' bonds price Thursday

In the largest sale of the week, Citizens Property Insurance Corp. in Florida plans to price its $1.5 billion in series 2008A high-risk senior secured bonds on Thursday, said a sellside source familiar with the sale.

"I think there's going to be a retail order period tomorrow [Wednesday]," said the sellsider. "We expect it to go well."

The bonds (A2/A+/) will be sold through lead manager Goldman, Sachs & Co.

The bonds are due from 2011 to 2013, and the proceeds will be used to provide resources to high-risk accounts, pending a need to pay policy claims and other expenses from future storms.

Also ahead, the Pittsburgh Water and Sewer Authority plans to price $108 million in debt securities later this week, said a calendar of sales.

The bonds will be sold on a negotiated basis with J.P. Morgan Securities as the senior manager, but calls to the issuer for additional details were not returned by press time.

Chino Basin bonds

Elsewhere, the Chino Basin Desalter Authority of California was expected to price $85 million in series 2008A desalter revenue refunding bonds (A1/A/), but calls for additional details were not returned by press time Tuesday.

The bonds were sold through senior manager Stone & Youngberg and were expected to be due in serial and term maturities.

Proceeds will be used to refund outstanding series 2004 bonds.

Texas foundation to sell bonds

The Scott & White Memorial Hospital & Scott Sherwood & Brindley Foundation in Texas plans to price $234.225 million refunding revenue bonds on June 2, according to a release from Moody's Investors Service.

The series 2008 variable-rate bonds (Aa3//) will price through the Tarrant County Cultural Education Facilities Finance Corp.

Kaufman Hall and Associates is the financial adviser.

Proceeds will be used to refund Scott and White's series 2006A-D auction-rate securities, which were insured by Financial Security Assurance. The 2008 bonds will not be insured, and the insurance policy has not been retained.

Harvard to sell $336.28 million

Looking to offerings for next week, Harvard University plans to price $336.28 million in series 2008 revenue bonds on or about June 3, said a sellside source connected to the deal Tuesday.

"They're set to price next Tuesday [June 3]," said the source. "We believe there will be a retail order period that Monday, but we're not sure yet."

The bonds (Aaa//) will be sold on a negotiated basis with JPMorgan as the senior manager.

The bonds will be sold through the Massachusetts Health & Educational Facilities Authority.

The sale includes $220.6 million in series 2008B 10-year bonds and $115.68 million in series 2008C 30-year bonds.

Proceeds from the deal will be used to finance capital projects that had previously been financed with commercial paper.

Two sales from Kentucky

The Kentucky Higher Education Student Loan Corp. is expected to price $300 million variable-rate demand revenue and refunding bonds on June 3, according to an updated sale calendar.

The series 2008A-1 tax exempt and 2008A-2 taxable bonds will be sold in a negotiated sale managed by Bank of America.

The Kentucky Housing Corp. also intends to price $50 million revenue bonds on June 17, according to a sale calendar.

The series 2008C and 2008D bonds will be sold in a negotiated sale managed by Merrill Lynch & Co.

Ventura County bond sale

In other upcoming offerings, Ventura County, California, plans to price $155 million tax and revenue anticipation notes, according to a preliminary official statement.

The series 2008/2009 notes are due July 1, 2009.

Merrill Lynch & Co. will manage the negotiated sale, the proceeds of which will be used to meet fiscal year 2008/2009 expenses.

Arlington County competitive sale

Arlington County, Virginia, plans to price $111.185 million general obligation public improvement bonds in a competitive sale on June 3, according to a preliminary official statement.

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

Public Financial Management is the county's financial adviser.

Proceeds will be used for projects for schools, utilities, parks and recreation, transportation and community infrastructure.

Indianapolis' refunding bonds

Indianapolis intends to price $70.805 million second-lien revenue refunding bonds, according to a preliminary official statement.

The series 2008C Gas Utility Distribution System bonds (Aaa/AAA/) have serial maturities from 2009 through 2021.

The bonds are insured by Assured Guaranty Corp.

Morgan Stanley is the senior manager of the negotiated sale.

Proceeds will be used to refund the city's series 2003A gas utility second-lien multi-modal revenue refunding bonds, to provide a payment to JPMorgan Chase Bank for a termination of an interest-rate swap agreement on the bonds and to provide funds for the Gas Utility Distribution System.

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