California Statewide Development Authority sells $1.9 billion; Orange County Sanitation prices

By Sheri Kasprzak

New York, Nov. 10 - Municipals rounded out the last session before the Veterans Day holiday mostly unmoved, said a trader reached in the afternoon.

"It's really quiet out there today," said the New York-based trader.

"There's not a lot moving. Everyone's looking at primary. This is really the last major day of sales this week because of the holiday tomorrow [Wednesday]. I'll call it unmoved, but if you go out long enough, there might be a touch of weakness."

Meanwhile, the California Statewide Development Authority sold $1.895 billion in series 2009 State of California Proposition 1A receivables program revenue bonds Tuesday, said a term sheet.

The sale included $395 million in bonds with a 4% coupon, priced at par, and $1.5 billion in bonds with a 5% coupon, priced at 103.295. Both bonds are due June 15, 2013.

"It's really not that bad for a California issuer," said one sellside source asked about the sale Tuesday afternoon.

"It's cheap, but considering its rating, it's really not surprising. It's pretty much what I expected. Actually, I would have predicted it to go a little cheaper."

Goldman, Sachs & Co. was the senior manager for the bonds (Baa1/A/BBB).

Proceeds will be used to repay borrowings from local property taxes.

Tom Dresslar, spokesman for the state treasurer's office, reported Tuesday that retail investors bought $620.474 million of the deal, with institutional buyers taking the rest.

Virginia College Building bonds price

In other primary news, the Virginia College Building Authority priced $236.9 million in series 2009 revenue bonds, said a sellside source familiar with the deal.

The bonds were sold on a competitive basis with Merrill Lynch & Co. winning the bid with a 4% true interest cost.

The bonds are due 2039.

Proceeds will be used to fund improvements to college buildings throughout the state.

Orange Sanitation brings $165.42 million

Also on Tuesday, the Orange County Sanitation District of California priced $165.415 million in series 2009B revenue refunding certificate anticipation notes, said a sellside source.

The bonds (/SP-1+/F1+) were sold competitively with Merrill Lynch winning the bid. The TIC came in at 0.38%.

The notes are due Dec. 1, 2010 with a 2% coupon. The notes were not officially reoffered.

Proceeds will be used to refund existing notes.

The county seat is Santa Ana, Calif.

Triborough Bridge and Tunnel drives sale

Elsewhere, the Triborough Bridge and Tunnel Authority of New York priced $150 million in series 2009 general revenue bond anticipation notes Tuesday, said a term sheet released by a sellside source.

The notes were sold on a competitive basis with Jefferies & Co. as the winning bidder. The TIC came at 0.34%.

The 2% notes are due Nov. 15, 2010 and were not formally reoffered.

Proceeds will be used to fund capital projects for the authority and refinance existing debt.

North Texas water bonds price

Additionally, the North Texas Municipal Water District priced Tuesday $140 million in series 2009 bonds, said a term sheet.

The bonds (Aa2/AAA/) were sold through J.P. Morgan Securities Inc.

The sale included $50 million in series 2009C-2 refunding bonds and $90 million in series 2009 taxable Build America Bonds.

The refunding bonds are due 2011 to 2021 with coupons from 3% to 5%. Those bonds were not reoffered.

The Build America Bonds are due 2015 to 2023 with term bonds due 2029 and 2039. The serials have coupons from 3.18% to 5.343%, all priced at par. The 2029 bonds have a 6.003% coupon, priced at par, and the 2039 bonds have a 6.123% coupon, also priced at par.

Proceeds will be used to fund water and sewer infrastructure improvements.

The district has headquarters in Wylie, Texas.

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