Pricings hit slump in coming week; MTA Bridges and Tunnels brings $1.121 billion in revenue bonds

By Cristal Cody and Sheri Kasprzak

New York, July 18 - Despite seeing heavy pricing action in recent days, the week of July 21 may be slightly less active.

"I don't think there's a problem, necessarily, with the market," said one sellside source reached Friday. "I think it's just the summer and people are out and there are generally less deals done this time of year."

Market sources earlier hinted that mid- to late-August would likely be very slow for pricings as people head out for their summer vacations.

Even so, Friday's light pricing schedule was led by a $1.121 billion sale of revenue bonds from MTA Bridges and Tunnels and the Triborough Bridge and Tunnel Authority in New York with 1.54% to 4.78% yields, according to official statements released Friday.

MTA will announce the true interest cost at a finance meeting on Monday, a source told Prospect News.

The $629.89 million series 2008C general revenue bonds (Aa2/AA-/AA) priced with 4% to 5% coupons to yield 1.887% to 4.62% from 2009 through 2030. Term bonds due in 2033 and 2038 priced with 5% coupons to yield 4.68% to 4.73%.

The $491.11 million series 2008D subordinate revenue bonds (Aa3/A+/AA-) priced with 4% to 5% coupons to yield 1.54% to 4.68% from Nov. 15, 2008 through Nov. 15, 2028. A term bond due in 2031 priced with a 5% coupon to yield 4.78%.

Citigroup Global Markets was the senior manager of the negotiated sales.

Proceeds will be used to finance transit and commuter projects and to refinance outstanding debt.

Texas to price two

Leading upcoming sales, two offerings are planned out of Texas for Thursday.

The Texas Transportation Commission expects to price $169.16 million state highway fund first tier revenue bonds, a source with the issuer said Friday.

The series 2008 bonds (Aa1/AAA/) have serial maturities from 2010 through 2028.

Morgan Keegan & Co. is the senior manager of the negotiated sale. Co-managers are Estrada Hinojosa & Co., First Southwest Co., Siebert Brandford Shank & Co. and Southwest Securities.

Proceeds will be used to finance state highway improvement projects.

The City of Austin intends to price $175 million electric utility system revenue refunding bonds through a competitive sale, according to a sale notice.

The series 2008A bonds (Aaa/AAA/AAA) have serial maturities from 2010 through 2038.

The bonds are insured by Assured Guaranty Corp.

The PFM Group is the city's financial adviser.

Proceeds will be used to refund Austin's outstanding commercial paper, which will allow the city to restore the available capital under its commercial paper note program and sell additional notes.

California academy plans sale

Also on Thursday, the California Academy of Sciences expects to price $287.89 million in series 2008 variable-rate demand revenue bonds, a sellside source confirmed to Prospect News.

The sale includes $95.605 million in series 2008A bonds, $60.165 million in series 2008B bonds, $48.29 million in series 2008C bonds, $34.52 million in series 2008D bonds, $24.655 million in series 2008E bonds and $24.655 million in series 2008F bonds.

The bonds (A2) will be sold through the California Infrastructure and Economic Development Bank on a negotiated basis with JPMorgan as the senior manager.

Proceeds from the deal will be used to refund the academy's outstanding series 2003A, 2005A and 2005B bonds, to fund a portion of capital project costs and to provide working capital for the academy.

Clark County G.O. bonds

Looking to the end of the month, Clark County of Nevada intends to price $70.895 million general obligation flood control refunding bonds on July 30, according to a sale notice.

The series 2008 bonds have serial maturities from 2009 through 2017.

The county plans to price the bonds through a competitive sale.

Hobbs, Ong & Associates and Public Financial Management are the county's financial advisers.

Proceeds will be used to help refund $74.185 million of the $99.87 million outstanding from the series 1998 G.O. flood control bonds.

MIT to price $335 million

Looking ahead, the Massachusetts Institute of Technology intends to sell $335 million in series 2008N revenue bonds, said a preliminary official statement. The bonds will be sold through the Massachusetts Health and Educational Facilities Authority.

The bonds will be sold on a negotiated basis with Lehman Brothers and Morgan Stanley as the underwriters.

The maturities have not been set at this time.

Proceeds will be used for capital improvements.

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