New offerings on track for record year?; New York City to bring $965 million G.O. bonds Wednesday

By Cristal Cody

Springdale, Ark., Aug. 1 - Market activity remained somewhat subdued on Friday, but indications point to a busy week and month ahead for new offerings and pricing action, a sellsider told Prospect News.

"It's been actually quite a busy year this year," said the sellside source reached Friday. "We're probably well on track to have, if not a record year in terms of issuance, a full one."

Several large sales are planned for the week of Aug. 4, including $965 million general obligation bonds from New York City and $715 million revenue bonds from the Bay Area Toll Authority in California.

New York Mortgage Agency to price $167.84 million

Coming up, the State of New York Mortgage Agency expects to price its previously announced $167.84 million variable-rate and fixed-rate homeowner mortgage revenue bonds (Aa1//) on Tuesday, according to a sale calendar.

The $60 million series 157 variable-rate bonds are due in 2043.

The fixed-rate tranches include $10.695 million series 154 bonds due in 2018 and a term due 2023, $32.145 million series 155 bonds with serial maturities from 2009 through 2018 and a term due 2019 and $65 million series 156 term bonds due 2023, 2028, 2032 and 2047.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

Proceeds will be used to purchase mortgage loans and pledged closing cost assistance loans and to refund and replace outstanding bonds.

Also the same week, the Ohio Housing Finance Agency plans to price $150 million residential mortgage revenue bonds on Thursday, according to a sale calendar.

The sale includes $85 million series 2008F fixed-rate bonds with split serial maturities from 2009 through 2018 and terms due 2028, 2033 and 2039, $13.75 million series 2008G fixed-rate term bonds due 2023 and $13.75 million series 2008H and $37.5 million series 2008I variable-rate bonds due 2039.

Citigroup Global Markets is the senior manager of the negotiated sale.

Proceeds will be used to finance new mortgage loans to qualified low- and moderate-income applicants and to refund outstanding obligations.

Milwaukee prices with 2%-4.8% yields

Looking to pricing action from earlier in the week, the Hayward Unified School District in California sold $100 million G.O. bonds with a 5.022% true interest cost.

The series 2008 bonds (/AA-/) priced with 5% to 7% coupons to yield 1.85% to 5.04%.

The bonds have serial maturities in 2009, 2010 and 2021 through 2029 and a term bond due 2033.

Citigroup Global Markets was the winning bidder in the competitive sale.

Proceeds will be used to acquire and renovate school facilities.

Also in the news Friday, the Milwaukee Metropolitan Sewerage District in Wisconsin priced $70 million G.O. sewerage system bonds, according to an official statement.

The series 2008F bonds (Aa1/AA+/AAA) priced with 3.25% to 5% coupons to yield 2% to 4.8%.

The bonds are due from 2009 to 2028.

Griffin, Kubik, Stephens and Thompson Inc. represents a group of underwriters that won the bidding in the competitive sale.

Proceeds will be used to finance the district's capital budget through 2008.

The New York City Municipal Water Finance Authority also sold $150 million second general resolution revenue bonds, but the terms were not immediately available on Friday.

The fiscal series 2009CC bonds (Aa3//) will finance a portion of the authority's outstanding commercial paper notes.

Maryland Department of Housing and Community Development

The Community Development Administration at the Maryland Department of Housing and Community Development plans to price $150 million residential revenue bonds the week of Aug. 11, a source said Friday.

The sale includes $19.77 million series 2008B bonds with serial maturities from 2009 through 2017, $80.23 million series 2008C term bonds due 2023, 2028, 2038 and 2048 and $50 million series 2008D term bonds due 2038.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

Proceeds will be used to refund a portion of the agency's draw-down bonds and to purchase mortgage loans.

Also on the horizon, the Tarrant County Cultural Education Facilities Finance Corp. in Texas plans to price $173.865 million revenue bonds for the Scott and White Memorial Hospital and Scott, Sherwood and Brindley Foundation, according to a preliminary official statement.

Additional information will not be available until Monday, a source said.

The series 2008A bonds (Aa3/AA-/) have serial maturities from 2009 through 2020 and terms due 2025 and 2031.

JPMorgan will manage the negotiated sale.

Proceeds will be used to refund the outstanding series 2000B1, 2000B2, 2001-1 and 2001-2 revenue bonds.

Virginia revenue bonds

In other news, the Commonwealth of Virginia plans to price $320 million public facilities revenue bonds (Aa1//) on Wednesday, according to Moody's Investors Service.

The $260 million series 2008B and $60 million series 2008C bonds will price through the Virginia Public Building Authority.

Proceeds will be used to finance various public building projects, including the state's share of regional and local jail facilities.

Further out, the Jackson-Madison County General Hospital, also known as Tennessee Healthcare, in Tennessee intends to price $298.995 million fixed-rate hospital revenue refunding bonds on Aug. 19, Moody's reported.

The series 2008 bonds (A1//) will price through the city of Jackson, Tenn.

Citigroup Global Markets will manage the negotiated sale.

Proceeds will be used to refund $78.3 million of series 2003A and $48.7 million of series 2006A insured auction-rate bonds and $143.6 million of series 2006B insured variable-rate bonds and to pay $15.3 million to terminate the bonds' interest rate swap agreements.

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