Pricing activity continues unabated, but calendar building eases

By Cristal Cody and Sheri Kasprzak

New York, April 2 - Wednesday marked another day filled with pricing action in the municipal market, even as the number of upcoming sales announcements waned slightly.

One sell-side market source said some issuers are waiting for better market conditions, so this may explain the drop off in new issue news.

"We are seeing some [issuers] pulling out or putting off their sales until things get some better," said the financial advisor source.

"Could be that some issuers who might have come out with new deals are holding off until market conditions are more favorable."

Even so, pricings continued on Wednesday, led by Hidalgo County Drainage District No. 1 in Edinburg, Texas, which priced $72 million in unlimited tax improvement bonds. Also priced on Wednesday was $60 million in series 2008 unlimited tax school building bonds from the Port Neches-Groves Independent School District, also in Texas.

Elsewhere, the city of Chicago did price $553.69 million in series 2008 senior-line water revenue project and refunding bonds, a source at the city confirmed, but the terms were not immediately available. The offering was downsized slightly from a planned $557.52 million.

Hidalgo bonds price

Moving back to those new pricings, Hidalgo County Drainage District No. 1 priced $72 million in improvement bonds with a 4.654365% true interest cost, a source said Wednesday.

The series 2008 bonds (A1/AA-/) priced Tuesday with serial maturities from 2010 through 2028.

The yield and coupon ranges were not available.

Robert W. Baird & Co. was the successful bidder in the competitive sale.

Proceeds will be used for drainage improvements and to acquire the rights-of-way.

The Port Neches-Groves Independent School District priced $60 million in school building bonds with a true interest cost of 4.75174%. Prager, Sealy & Co. won the competitive bid, said Charley Donaldson, vice president of public finance for Coastal Securities, in an interview Wednesday.

The bonds are due from 2009 to 2033 with coupons from 3.75% to 5% and yields from 2.25% to 5.08%.

Proceeds from the sale will be used to acquire, construct, equip and renovate school buildings.

Oakland Joint Powers Financing Authority in California was expected to price lease revenue refunding bonds on Wednesday.

The $110.3 million series 2008A-1 tax-exempt bonds and the $20.3 million series 2008A-2 bonds will be sold to refund the authority's 2005 series A-1 and A-2 auction rate revenue bonds.

The bonds have experienced one failed auction and since January have carried a 7% interest rate as opposed to the 3.75% the city was paying prior to the auction reset.

Chicago bonds fund water system improvements

Chicago's $553.69 million in series 2008 bonds were sold on a negotiated basis through lead manager UBS Investment Bank.

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

The proceeds from the sale will be used for improvements and extensions to the city's water system, as well as for the retirement of water revenue bonds and commercial paper.

Judson ISD bonds price

Elsewhere, the Judson Independent School District out of Texas priced $71,319,970 in series 2008 unlimited tax school building bonds on Tuesday, Duane Westerman with Samco Capital Markets, the district's financial advisor, said Wednesday.

The bonds (A1//A+) are due from 2009 to 2028 with term bonds due 2032 and 2037, said Westerman.

The serial bonds have coupons ranging from 3.5% to 4.875% and yields from 2.25% to 5.03%. The 2032 bonds have a 5% with a 5.08% yield and the 2037 bonds have a 5% coupon and a yield of 5.14%.

The bonds were sold on a negotiated basis through RBC Capital Markets.

Proceeds from the sale will be used to construct a replacement high school and elementary school, as well as for technology and renovations at district schools.

Upcoming sales

Scottsdale, Ariz., plans to price $230 million bonds in competitive sales on April 23, according to preliminary official statements released Wednesday.

The city expects to price $100 million series 2008A and $20 million series 2008B general obligation bonds, as well as $110 million excise tax revenue bonds.

The general obligation bonds (Aaa/AAA/AAA) have maturities from 2009 through 2034.

The series 2008A excise tax revenue bonds (Aa1/AAA/AA+) have maturities from 2009 through 2032.

Proceeds from the general obligation bonds will be used for various community projects, including transportation and the library and park systems.

Proceeds from the tax revenue bonds will be used for water and sewer improvements.

Piper Jaffray & Co. is the city's financial advisor.

The Development Authority of Fulton County, Ga., and Georgia Tech Facilities Inc. plan to price $66.655 million refunding revenue bonds, according to preliminary official statements released Tuesday.

The $32.895 million series 2008A bonds and $33.76 million series 2008B bonds initially will bear interest at the weekly rate.

The series 2008A bonds are due May 1, 2037 and the series 2008B bonds are due June 1, 2032.

UBS Investment Bank will manage the reoffering of the bonds.

Proceeds will be used to refund the authority's and Georgia Tech Facility's series 2005A bonds.

Ohio expects to price $50 million revitalization project bonds in retail and institutional sales, the state treasurer's office reported Wednesday.

The series 2008A bonds (A1/AA-/) will price April 9 for retail investors and April 10 for institutional investors, said Rodney Nespeza, assistant director of the state's debt management office.

The bonds have serial maturities from Oct. 1, 2008 through Oct. 1, 2022.

PNC Capital Markets is the senior manager of the negotiated sale. Co-managers are Siebert Brandford Shank & Co., Wachovia Bank and Keybanc Capital Markets.

Proceeds will be used to pay for the development or use of publicly and privately owned land in the state.

"We allow ourselves the flexibility [for retail sales] based on market conditions and investor feedback," he said.

Temple University - of the Commonwealth System of Higher Education in Pennsylvania - plans to price $120 million university funding obligation notes on April 16, according to a preliminary official statement released Tuesday.

The series 2008 notes (MIG1//) will be sold on a competitive basis. The notes are due April 21, 2009.

Public Financial Management is the university's financial advisor.

Proceeds will be used for various capital projects and to refinance $104.5 million of the university's series 2007 funding obligations.

Philadelphia plans to price $203.8 million general obligation refunding bonds on April 15, according to Moody's Investors Service.

The series 2008A bonds (Baa1) will be used to refund the city's series 2003B auction rate bonds to convert them to fixed rate.

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