Oregon plans G.O. bond sale; muni deal volume forecast to drop to $2.5 billion-$3 billion

By Cristal Cody

Prospect News, April 25 - A couple of smaller municipal bond deals are in the works from the State of Oregon and Humble Independent School District in Harris County, Texas, according to preliminary official statements.

But sales will remain small and few other than the nearly $1 billion of revenue bonds expected to price this week from the Chicago O'Hare International Airport, a source said Monday.

"Aside from that O'Hare deal, only $1.5 billion volume is expected to come," the source said.

Deal volume is expected to total $2.5 billion to $3 billion for the week, "significantly lower from where the primary market issuance usually is," according to the source.

The deal calendar is expected to begin to fill out but should remain light for the near term, the source said.

"Issuers are waiting to find out what's going to be happening with their budget situations and how state budget situations are going to play out," the source said.

Oregon plans $177.92 million

In the largest new deal announced, the State of Oregon intends to bring $177.92 million of general obligation bonds (Aa1/AA+/AA+), according to a preliminary official statement.

The deal includes $49.69 million of series 2011E bonds, $6.29 million of series 2011F bonds, $52.185 million of series 2011G bonds and $69.755 million of series 2011H bonds.

The series 2011E bonds have serial maturities from 2012 through 2031 and term bonds due 2036 and 2041.

The series 2011F bonds have serial maturities from 2012 through 2017.

The series 2011G bonds have serial maturities from 2017 through 2031 and term bonds due 2036 and 2041.

The series 2011H bonds have serial maturities from 2012 through 2031 and term bonds due 2036 and 2041.

The tranches will price via a negotiated sale led by senior managers Merrill Lynch and Citigroup Global Markets Inc.

Proceeds will be used to finance projects within the Oregon University System.

Humble ISD to sell bonds

Also coming up, Texas' Humble Independent School District plans to sell more than $58 million of bonds (Aaa/AAA/), according to a preliminary official statement.

The sale is to include $25 million of series 2011A school building bonds with serial maturities from 2016 through 2035 and $33.475 million of series 2011B refunding bonds due 2012 through 2022.

RBC Capital Markets LLC is the senior manager of the negotiated sale.

Proceeds will be used to acquire, construct and equip school buildings and school district facilities, to purchase building sites and school buses and to refund a portion of the district's outstanding debt.

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