New York State Urban Development prices $520.135 million tax revenue bonds;

By Cristal Cody and Sheri Kasprzak

New York, Jan. 11 - The New York State Urban Development Corp. led muni news to round out the week, pricing $520.135 million in tax revenue bonds (AAA/AA-) in two tranches.

The corporation priced $486.11 million in state personal income tax revenue bonds series 2008A-1 and $34.025 million in state personal income tax revenue bonds series 2008A-2.

Both tranches have a serial structure with the A tranche due from 2008 through 2027. The 2008 maturity includes $28.96 million principal amount of bonds with a 4% coupon priced to yield 2.6%. The 2027 tranche includes $30.79 million principal amount of bonds with a 5% coupon to yield 4.11%.

The A tranche bonds due before Dec. 15, 2018 are callable at par starting Dec. 18, 2017.

The B tranche is due as serials from 2008 through 2017. The 2008 maturity includes $2.61 million principal amount of bonds with a 3.748% coupon, priced at par. The 2017 maturity includes $4.175 million principal amount of bonds with a 4.858% coupon, priced at par.

The B tranche bonds are callable at any time at par.

Citigroup Global Markets, Merrill Lynch & Co., M.R. Beal & Co. and Siebert Brandford Shank & Co., LLC were the joint lead managers. Banc of America Securities LLC; Bear, Stearns & Co., Inc.; Goldman, Sachs & Co.; Lehman Brothers; Morgan Stanley; UBS Investment; DEPFA First Albany Securities LLC; JPMorgan; Keybanc Capital Markets; Loop Capital Markets, LLC; Prager, Sealy & Co., LLC; Ramirez & Co., Inc.; RBC Capital Markets; Raymond James & Assoc., Inc.; and Wachovia Bank, NA were the co-managers.

Chicago O'Hare's upcoming bonds

Underwriters are looking at nearly 30 issues pricing this coming week, with at least three bonds above $75 million, one underwriter said Friday.

Looking ahead, Chicago O'Hare Airport leads negotiated bond issues with its plan to price two sizable offerings this week led by a $766 million general airport lien bond set to price Tuesday.

Those FSA-insured bonds are due in serial maturities from 2010 through 2028 and include term bonds due 2033 and 2038. The bonds also include alternative minimum tax bonds with serial maturities from 2010 through 2018 and maturities in 2022, 2028 and 2038.

Also set for pricing on Tuesday are $112 million in passenger facility charge bonds from the Chicago O'Hare Airport. Those bonds are due in a serial structure from 2012 through 2016.

Elsewhere, the Chino Basin Regional Finance Authority in California is set on Tuesday to price $125 million in bonds for the Inland Empire Utilities Agency. The bonds have a serial structure from 2023 to 2038.

Citigroup Global Markets is the lead manager for the Chino Basin offering.

Also set for this week is a $102 million bond offering from the California Housing Finance Authority (Aa2/AA-).

Those bonds are being sold in two tranches. The 2008A bonds have a serial structure from 2009 through 2018 and the 2008B bonds have a term structure with maturities in 2023, 2028 and 2041.

Lewisville ISD on competitive calendar

On the competitive calendar for the week are $87.745 million in bonds from Texas's Lewisville Independent School District.

Those bonds, expected to price Monday, have a serial structure from 2011 through 2028.

On the competitive calendar for Tuesday is $237.915 million in bonds from Fairfax County in Virginia. Those bonds also have a serial structure from 2009 through 2028.

Nassau County bonds to price

New York's Nassau County will sell $125 million in competitive general obligation bonds series 2008 on Tuesday.

The tax-exempt bonds (A2/A/A+) include $105 million in general improvement bonds, 2008 series A, and $20 million in sewer and storm water resources district bonds, series B.

The series A bonds will be used for improvement projects throughout the Long Island-based county, while the series B bonds will be used for sewer and water projects, said Edward Lin, senior managing consultant with Public Financial Management Inc. of New York, the county's financial advisor.

The series A bonds have consecutive serial maturities from 2009 to 2028, and the series B bonds mature from 2009 to 2033.

The county doesn't have any pricing goals on the bonds.

"We're leaving it to the bidders to bid whatever they believe is the lowest true interest cost on the aggregate issue and allowing them to bid with insurance, if they think the insurance is cost effective," Lin said. "We're just hoping for the best pricing possible on that day, but we have no set levels in minds."

Down South, the Tennessee School Bond Authority plans to price $118.35 million in bonds, also on Tuesday. Those bonds are also due in a serial structure from 2008 through 2037.

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