Dasny brings $305 million in bonds for Cornell; N.J. Educational Facilities sells $258 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, April 1 - Wednesday proved to be another busy day for municipals pricings with two rather large deals in the market.

Meanwhile, the secondary market continued to firm as investors took on a healthy supply of primary offerings, a trader said.

"We're looking a little firmer today," said the trader. "Volume is slightly better, but still fairly light."

In Wednesday's primary action, the Dormitory Authority of the State of New York priced $305 million in series 2009A revenue bonds for Cornell University, said Marc Violette, spokesman for the authority.

The bonds were sold through lead manager J.P. Morgan Securities Inc.

The bonds are due 2012 to 2030 with term bonds due 2034 and 2039.

The serials have coupons from 3% to 5% and yields from 1.48% to 4.89%. The 2034 bonds have a 5% coupon to yield 5.03% and the 2039 bonds have a 5% coupon to yield 5.08%.

Proceeds will be used to refinance outstanding debt.

The authority is based in Albany, N.Y.

New Jersey EFA prices $258 million

In other pricing news, the New Jersey Educational Facilities Authority priced $258.075 million of series 2009B revenue refunding bonds on behalf of the University of Medicine and Dentistry of New Jersey, said executive director Roger Anderson.

The bonds sold at a true interest cost of 7.47%.

The high yield was 7.8% in 2032, while the low yield was 4.8% in 2012.

Morgan Stanley & Co. Inc. and Citigroup Global Markets Inc. were the lead underwriters for the negotiated issue.

The New Jersey Educational Facilities Authority is headquartered in Princeton, N.J..

Port Authority rolls out $85.7 million

The Port Authority of New York and New Jersey priced $85.7 million of 155th series consolidated bonds at a true interest cost of 2.78%, according to debt manager Michael Percival.

The auction was arranged so that "bidders couldn't bid higher than par," Percival said, so "we're happy with the result."

Citigroup Global Markets Inc. won the auction over six other bidders.

The yields ranged from 1.25% to 3.60%, corresponding to bonds maturing from 2010 to 2019.

Proceeds from the sale will be used to refund existing obligations.

The Port Authority of New York and New Jersey is headquartered in New York.

UConn sells $151.4 million

In other pricing news, the University of Connecticut brought $151.388 million in series 2009A general obligation bonds, according to a term sheet released Wednesday.

The bonds (Aa2/AA/AA-) priced Tuesday with maturities from 2010 to 2029 and coupons from 2% to 5%. The yields range from 0.385% to 4.8%. The true interest cost came in at 4.01% -- one of the lowest in the university's history, according to a university statement.

"The majority of the bonds were limited to sale to retail investors Monday and part of Tuesday, and most of the issue was sold to retail investors, with institutional investors showing a very strong interest once orders were opened up to them," said the university's statement.

J.P. Morgan Securities Inc. was the senior manager.

Proceeds will be used for capital expenses, including classroom buildings at the Storrs, Conn., campus, a residential life facilities and other projects.

Fairfax to sell $550 million

Looking to upcoming sales, the Industrial Development Authority of Fairfax County in Virginia plans to issue $550 million in healthcare revenue bonds on behalf of the Inova Health System, according to a preliminary offering statement.

The bonds will come in two tranches.

The authority plans to price $360 million of series 2009A serial bonds and $190 million of series 2009B term bonds.

Citigroup Global Markets Inc. will act as lead underwriter for the negotiated deals.

Proceeds from the sale will be loaned to the Inova Health System.

Jefferson County sale

Also ahead, Jefferson County in Colorado is expected to price $70.045 million in series 2009 open space sales tax revenue refunding bonds on April 7, said a notice of sale released Wednesday.

The bonds (Aa3/AA-./AA-) will be sold competitively with James Capital Advisors as the financial adviser.

The bonds are due 2010 to 2019.

Proceeds will be used to refund the county's series 1999 open space sales tax revenue bonds.

Secondary firmer

Moving to the secondary market, a trader said the tone of the market firmed as investors digested a large supply of primary offerings.

Among the bonds traded Wednesday, North Carolina Eastern Municipal Power's series 2009A refunding bonds were seen moving. The 5.25% 2020s were seen at 5.18%.

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