Peoria, Ariz., sells $68.44 million G.O.s; $418.04 million Dasny PIT sale moved to Thursday

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Feb. 3 - Despite a lull in new-issue action, Tuesday did see some municipal pricings - even though some offerings were pushed to the end of the week.

Meanwhile, some offerings that had been expected to price later in the month will price earlier.

"We're in a market right now where issuers are looking very closely at the right time to price," one market source said.

"It really is a day-to-day thing. If a window opens up and it looks like conditions are good, sometimes the issuer will move a deal accordingly. It's not that uncommon."

The new-issue market Tuesday was led by a $68.44 million sale of series 2009A general obligation bonds (Aa2/AA+/AA) from Peoria, Ariz.

The bonds priced with a true interest cost of 3.77% and an average coupon of 4.02%, said Brent Mattingly, the city's chief financial officer.

"I think it went really well," Mattingly said. "We had nine bids."

"It was a little better than we expected," he added. "We were thinking 4% or a little under [would be the likely yield]."

The bonds were sold competitively with Merrill Lynch & Co. winning the bid. TL Hocking & Associates LLC was the financial adviser.

The bonds are due 2009 to 2028.

Proceeds will be used to improve the city's streets, municipal court, storm drains, parks and recreation facilities and other infrastructure.

Dasny sale on Thursday

One offering that had been slated to price Tuesday - the Dormitory Authority of the State of New York's $418.035 million in series 2009 state personal income tax revenue bonds - will now hit the market Thursday instead, said a sellside source related to the deal.

A retail order period will be held Wednesday, but the bonds are still expected to be sold through senior manager Citigroup Global Markets Inc.

The deal includes $148.855 million in series 2009A education bonds, $93.76 million in series 2009A health-care bonds, $24.55 million in series 2009A state facilities and equipment bonds and $150.87 million in series 2009A economic development and housing bonds.

Proceeds will be used for capital grants to schools and health-care systems as well as economic development grants under state programs.

San Diego building deal

In other offerings planned for Thursday, the San Diego Regional Building Authority is scheduled to price its previously announced $142.5 million in series 2009A lease revenue bonds, according to a sales calendar. The offering had been scheduled to price Feb. 11.

The bonds (A1/AA+/AA) will be sold on a negotiated basis with Goldman, Sachs & Co., Citigroup Global Markets and Loop Capital Markets LLC as the senior managers.

The bonds are due 2010 to 2036.

Proceeds will be used to construct and equip county facilities and make a deposit to a debt service reserve fund.

Grand Valley State to price Thursday

The Board of Trustees of Grand Valley State University in Michigan will issue $50.59 million in general revenue bonds (/A+/) Thursday, said Brian Copeland, assistant vice president for business and finance.

The issue is expected to price with yields near 5.9%, Copeland speculated.

Serial bonds will carry maturities from 2011 to 2019, and term bonds will mature in 2024, 2029 and 2034.

PNC Capital Markets and National City Capital Markets will act as underwriters for the negotiated bonds.

Proceeds from the sale will be used to construct new student housing facilities.

Grand Valley State University is based in Allendale, Mich.

Dallas to bring $293.9 million

Looking a little further out, the City of Dallas is expected to price $293.9 million in series 2009 revenue refunding and improvement bonds for its civic center complex, said a preliminary official statement released Tuesday.

The bonds (Aa2/AAA/) will be sold on a negotiated basis with J.P. Morgan Securities and Siebert Brandford Shank & Co. as the senior managers.

Proceeds will be used to refund the city's series 1998 bonds and to fund construction costs related to the civic center project.

Secondary improves

Moving to the secondary market, the tone of the market was firmer and at least one trader was marveling at the performance, especially in light of weaker Treasuries.

"Treasuries are off, but we're looking pretty good," he said.

"The long end looks a lot better, but even the short end is better by a few basis points."

Looking at specific trades, the California State Public Works Department's series G bonds were seen trading Tuesday. The 4.5% 2029s were seen at 6.481%.

One trader saw some demand for the Grand Rapids Public Schools of Michigan's series A school building bonds. The 4% 2016s were trading at 3.474%, and the 4% 2017s were trading at 3.64%.

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