Dallas to bring $293.9 million civic center bonds Tuesday; Texas A&M to sell $349.73 million

By Sheri Kasprzak

New York, Feb. 6 - Municipal volume for the coming week is proving to be exceptionally higher than the week prior, led by an almost $300 million sale of revenue refunding and improvement bonds from the City of Dallas.

A market source reached Friday suggested that improved market conditions are assuaging issuer fears. More and more windows for pricing are opening up, he added.

"There are, definitely, more good days to price in the week ahead, so issuers are pushing to price," he said.

Moving back to that Dallas sale, the city will price $293.9 million in series 2009 revenue refunding and improvement bonds (Aa2/AAA/) on Tuesday.

J.P. Morgan Securities Inc. and Siebert Brandford Shank & Co. are the senior managers, and proceeds will be used to refund the city's series 1998 bonds and fund construction costs related to the city's civic center project.

Texas A&M to sell bonds

Also out of Texas, the Texas A&M University System is planning to sell $349.725 million in series 2009 revenue financing system bonds on Thursday, said a preliminary official statement released Friday.

The offering is one of several coming up from universities.

"There's really no big trend," said one market source reached Friday.

"Universities are big issuers anyway, and they're looking at their needs for the year. They're taking advantage of the pricing window."

In the A&M sale, the university plans to sell $270.96 million in series 2009A bonds and $78.765 million in series 2009B bonds. The lead manager for the 2009A bonds is J.P. Morgan Securities, and the lead for the series 2009B bonds is Morgan Keegan & Co. Inc.

The 2009A bonds are due 2010 to 2029, and the 2009B bonds are due 2010 to 2039.

Proceeds will be used to construct, equip and acquire facilities as well as refinance existing commercial paper.

A&M is based in College Station, Texas.

Rutgers to sell $237 million

Another university sale comes out of New Jersey.

Rutgers University plans to price $237.445 million in series 2009F general obligation bonds (Aa3/AA/) on Tuesday through lead manager Morgan Stanley & Co. Inc.

The bonds are due 2010 to 2029 with term bonds due 2034 and 2039.

Proceeds will be used refund the university's series 1997U and 1998A bonds, refinance commercial paper, upgrade the university's electrical substation, improve landscaping, expand the university's Institute for Health, Health Care Policy and Aging Research and add a student center to the university's Livingston campus.

Rutgers is based in New Brunswick, N.J.

San Diego building deal

In other upcoming deals for the week, the San Diego Regional Building Authority plans to price $142.5 million in series 2009A lease revenue bonds (A1/AA+/AA) Wednesday, said a sales calendar released Friday.

The bonds will be sold through lead managers Goldman, Sachs & Co.; Citigroup Global Markets Inc.; and Loop Capital Markets LLC.

Proceeds will be used to construct and equip county facilities as well as make a deposit to a debt service reserve fund.

On Thursday, JEA in Florida is set to price its previously announced $128.31 million in series 2009 water and sewer revenue bonds, said a sales calendar.

The bonds will be sold through lead manager Goldman Sachs.

The sale includes series 2009A bonds due 2011 to 2029 with term bonds due 2034 and 2039 and series 2009B bonds due 2010 to 2019.

Proceeds will fund the construction and expansion of the authority's water and wastewater system.

JEA is based out of Jacksonville, Fla.

Baltimore deal ahead

Elsewhere, Baltimore County in Maryland is set to price $101.89 million in series 2009 refunding G.O. bonds Tuesday, according to a sales calendar.

The sale includes $25.38 million in metropolitan district bonds, $28.37 million in consolidated public improvement bonds and $48.14 million in pension funding bonds.

The metropolitan district bonds are due 2009 to 2018, the consolidated public improvement bonds are due 2009 to 2018, and the pension bonds are due 2009 to 2015.

The bonds will be sold competitively with Public Resources Advisory Group as the financial adviser.

Proceeds will be used to refund outstanding bonds.

Secondary finishes mixed

After a week of improvements, the secondary market finished out the week mixed, said one trader reached during the afternoon.

"It looks a little better on the long end, but the short end seems to be off a bit today," the trader said.

"The whole week, the long end has looked a little better."

Looking at specific trades, East Baton Rouge, La.'s series 2009 road and street improvement bonds were seen in play. The 5% 2022s were seen trading Friday at 4.099%. The bonds priced during the week of Jan. 26 to yield 4.65%.

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