Triborough Bridge Authority prices upsized $150 billion; Rutgers University prices early; trading light

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Feb. 11 - The municipal market spent another busy day on the primary market side as New York's Triborough Bridge and Tunnel Authority priced an upsized $150 million issue.

Investors were still showing strong interest in high-quality products as modest gains on Wall Street were hardly enough to shake the risk appetite for highly rated credits.

Meanwhile, Wall Street executives returned to Capitol Hill for their scheduled grilling, which helped distract investors and lighten trading volumes.

Flows during the day's trading remained light, as investors were more inclined to keep their hands off the table.

"Nothing drastic happened," said John Hearn, head of municipal trading at Carty & Co.

Scarlet Knights charge ahead of schedule

Despite its plans to sell $237.445 million in series 2009F general obligation bonds (Aa3/AA/) on Tuesday, Rutgers University of New Jersey priced its G.O.s a day early due to retail interest, said Delanie Moler, the university's vice president of finance.

The bonds were sold Monday after a particularly successful retail order period, Moler said, and the university decided not to pursue the institutional order period on Tuesday.

"We had planned to market the bonds on Monday and Tuesday - Monday as a retail order period and Tuesday as the institutional order period," Moler said in an interview Wednesday.

"Interest was very strong on Monday, and the university decided to accelerate the marketing. It is good to know that even in these challenging times, Rutgers is favorably viewed by the investment market."

Morgan Stanley & Co. Inc. was the lead manager for the sale with Merrill Lynch & Co.; Stifel, Nicolaus & Co. Inc.; and Wachovia Bank as the co-managers.

The bonds are due 2010 to 2031 with a term bond due 2039. The serials have coupons from 2% to 5% and yields from 0.93% to 4.9%. The 2039 bonds have a 5% coupon, priced at 100.151.

Proceeds will be used to refund the university's series 1997U and 1998A bonds as well as refinance the university's commercial paper. The remainder will be used to 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.

Triborough rolls out $150 million

Triborough Bridge and Tunnel Authority in New York priced $150 million in series 2009A-1 general revenue mandatory tender bonds (Aa2/VMIG 1/AA-/A-1+/AA/F1+), according to a statement from the authority.

"I am very pleased at the broad interest by the market and receptivity for the TBTA credit as we continue to advance our critical investment in our bridge and tunnel infrastructure," Gary Dellaverson, the authority's chief financial officer, said in the statement.

The bonds were upsized from $100 million and carry a 2% coupon to yield 0.65%.

Barclays Capital Inc. and Loop Capital Markets LLC acted as underwriters for the negotiated sale.

Proceeds will be used to finance some outstanding debt and to generate new money to finance existing approved capital projects for Metropolitan Transportation Authority bridges and tunnels.

Wednesday's offer represents the completion of the financing plan for the TBTA general resolution series 2009A bonds.

The TBTA general resolution series 2009A-2 bonds were priced on Jan. 26 and Jan. 27, the statement said.

The Triborough Bridge and Tunnel Authority is based in New York.

Tarrant Water District taps market

The Tarrant Regional Water District in Texas priced $69.535 million in series 2009 water refunding and improvement bonds (A1/AAA/AA), according to Sandy Swinnea of the district.

The deal "went a little better than we expected," Swinnea said.

The district expected a true interest cost of close to 4.5% but managed to price with a TIC of 4.34%, she said.

The bonds were priced with maturities from 2011 to 2013 and from 2018 to 2029.

J.P. Morgan Securities Inc. and Frost Bank acted as the lead underwriters for the deal.

Proceeds will be used to construct parallel pipeline segment and make major repairs to district water and wastewater systems. Other funds will be used to refund the district's series 1999 bonds.

The water district is based in Fort Worth.

Williamson County prices $50.2 million

Williamson County in Tennessee priced $50.2 million in series 2009A G.O. and refunding bonds, according to David Coleman, county budget director.

The sale went "very well," Coleman said.

BB&T Capital Markets won the auction for both of the tranches. Stephens Inc. acted as financial adviser for the deal.

The county priced $26.5 million series 2009A G.O. bonds with a TIC of 3.822% and $23.7 million series 2009A school district refunding bonds with a TIC of 3.833%.

The county received seven bids on the G.O.s and five bids on the school district bonds, Coleman said.

All of the offers were below 4%, he said.

Both tranches carry maturities from 2011 to 2029.

Proceeds will be used for general government facility improvements, improvements to the county's solid waste facilities and improvements to parks, recreational areas, schools and other county facilities.

The Williamson County seat is in Franklin, Tenn.

Oregon sales ahead

Moving to upcoming deals, several offerings are coming up in late February and March out of the state of Oregon. One of the largest sales comes from the Oregon State Lottery, which is scheduled to sell $440 million in series 2009A revenue bonds during the week of March 23, according to a calendar of upcoming offerings.

The bonds will be sold through lead manager Citigroup Global Markets Inc.

Proceeds will be used for a variety of development projects.

Also up from the state is a $242.1 million sale of series 2009 G.O.s from the Marion County School District No. 24J. That sale is planned for Feb. 25, said a sales calendar from the issuer.

The bonds will be sold through senior manager Seattle Northwest Securities Corp.

Proceeds will be used for capital construction projects throughout the district.

In other upcoming sales out of Oregon, the Oregon University System is expected to sell $147 million in series 2009A G.O.s through lead manager Merrill Lynch during the week of March 2.

Proceeds will be used to construct dorms and instructional buildings at college campuses throughout the state.

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