U of Chicago to bring $500 million; billions in sales planned as muni market gets back down to business

By Sheri Kasprzak

New York, Dec. 1 - As the municipals market got back down to business as usual, billions in upcoming sales were announced for the week Monday.

With the Thanksgiving holiday behind us, one sellsider said things are looking up for issuance.

"I don't know if we'll be close to last year," he noted. "Tentatively, there's lots out there for this week and into the next couple of weeks. I don't think we'll do in volume what we did last year though."

Meanwhile, the secondary market was a bit weaker in afternoon trading, said one trader, even as Treasuries rose.

"We've been off a bit here and there," he said. "Things were pretty quiet today."

Back to this week's primary action, the University of Chicago is scheduled to price $500 million in series 2008B revenue bonds Thursday, according to a calendar.

The bonds will be sold on a negotiated basis through the Illinois Finance Authority with J.P. Morgan Securities Inc. as the lead manager.

Proceeds will be used for financing, refinancing or reimbursing the University of Chicago for the construction, acquisition, equipment or renovation of educational facilities on campus.

Another particularly large deal comes out of California, even as the state is examining a multi-billion-dollar budget crisis. California Gov. Arnold Schwarzenegger called a special session of the state's legislature to address solutions to the state's $11 billion budget deficit.

Even so, the Transmission Agency of Northern California is set to bring $424.475 million in series 2008 California-Oregon Transmission Project revenue refunding bonds to market Thursday, said a calendar.

The bonds (/A+/A+) will be sold through senior manager J.P. Morgan Securities.

The sale includes $104.485 million in series 2008A bonds, $229.615 million in series 2008B bonds, $32.05 million in series 2008C bonds and $58.325 million in series 2008D bonds.

The 2008A bonds are due 2009 to 2020 with a term bond due 2029. The 2008B bonds are due 2014 to 2020 with a term bond due 2029, and the 2008C bonds are due 2009 to 2018. The 2008D bonds are due 2009 to 2018

Proceeds will be used to retire the agency's series 2002 and 2003 bonds and retire commercial paper notes.

Houston sale ahead

Also coming up this week, the City of Houston is expected to sell $450 million in series 2008 taxable pension obligation and taxable pension obligation refunding bonds on Tuesday, said a calendar of upcoming deals.

The bonds (Aa3/AA/) will be sold on a negotiated basis with J.P. Morgan Securities as the lead manager.

The sale includes $430 million in series 2008A taxable pension obligation refunding bonds and $20 million in series 2008B taxable pension obligation bonds.

Proceeds will be used to refund, prepay and defease the city's series 2004 collateralized pension obligation notes and fund an unfunded portion of the Houston Police Officer Pension System.

NYC water sale

In other upcoming deals for the week, the New York City Municipal Water Finance Authority is set to sell $450 million in series 2009DD water and sewer system second general resolution revenue bonds Wednesday, said a calendar of upcoming deals.

The bonds will be sold through lead manager Merrill Lynch & Co.

Proceeds will be used to make improvements to the city's water and sewer system and for the repayment of the authority's commercial paper notes.

Moving out west, the Dallas Independent School District in Texas is scheduled to price $400 million in series 2008 unlimited tax school building bonds Wednesday, according to a calendar.

The bonds will be sold on a negotiated basis with RBC Capital Markets as the senior manager.

The sale includes $9.54 million in premium capital appreciation bonds, which are due 2010, and $390.46 million in current interest bonds, which are due 2012 to 2034.

Proceeds will be used to construct, equip and renovate schools in the district.

Virginia housing sale

Also planned for later this week is a $300 million sale of series 2008 commonwealth mortgage bonds from the Virginia Housing Development Authority.

The bonds (Aaa/AAA/) will be sold through lead manager Merrill Lynch.

The sale includes $84.665 million in series 2008AMT bonds and $215.335 million in series 2008E non-AMT bonds.

Proceeds will be used for mortgage loans.

Up in the snowy climes of Alaska, the Matanuska-Sustina Borough is planning to sell $245.38 million in series 2008 lease revenue bonds on Tuesday, said a calendar of sales.

The bonds (Aa3//AA-) will be sold on a negotiated basis with RBC Capital Markets as the lead manager.

The bonds are due from 2009 to 2033.

Proceeds will be used for the design and construction of a prison to hold prisoners currently housed out of state.

Dasny sales expected

At least two offerings from the Dormitory Authority of the State of New York are on the calendar for the week. The authority plans to sell $107 million in series 2008E City University System consolidated fifth general resolution revenue bonds Thursday, said a calendar of upcoming offerings.

Citigroup Global Markets is the lead manager for the sale. Banc of America Securities, Merrill Lynch, Morgan Stanley, Ramirez & Co., Rice Financial Products and Wachovia Bank are the co-managers.

The proceeds will be used to refund the authority's outstanding auction-rate obligations.

The authority is also expected to sell $89.155 million in series 2008 school district revenue bonds, said a preliminary official statement.

The sale includes $41.235 million in series 2008C bonds (A2/A+/A+) and $47.92 million in series 2008D bonds (A2/A+/A).

The bonds will be sold on a negotiated basis with Depfa First Albany Securities as the senior manager.

Proceeds will be used for loans to some school districts for capital improvements.

Wisconsin to sell G.O.s

The State of Wisconsin is planning to sell $150 million in general obligation bonds at some point this week, said David Erdman with the state's Department of Administration.

The bonds will be sold competitively.

Erdman said the earliest date the sale could occur was Monday, but the state had not "provided the required notice that establishes the sale date and time."

"This competitive bond sale could occur this week, but final plans have not been made," Erdman said.

Proceeds will be used for capital expenditures throughout the state.

San Antonio to sell several

The City of San Antonio is in the market this week with a few offerings totaling $177 million.

The sale includes $76.1 million in series 2008 G.O. improvement bonds, $85.1 million in series 2008 combination tax and revenue certificates of obligation and $15.8 million in series 2008 tax notes.

All of the notes, bonds and certificates will be sold through lead manager Siebert Brandford Shank & Co. Coastal Securities Inc. is the financial adviser.

The exact pricing date for the offerings could not be determined by press time Monday.

Proceeds will be used for a variety of capital improvement projects throughout the city.

Knoxville offering ahead

Moving a bit further ahead, the City of Knoxville, Tenn., is slated to price $115 million in series 2008 revenue bonds on Dec. 9, said a preliminary official statement.

The sale includes $40 million in series 2008Y electric system revenue bonds (Aa3/AA+/) and $75 million in series 2008 wastewater system revenue bonds (Aa3/AA+/).

The bonds will be sold on a competitive basis with Morgan Keegan & Co. as the financial adviser.

The electric system bonds are due 2011 to 2029, and the wastewater bonds are due 2011 to 2034.

Proceeds will be used for construction, renovation, extension and improvement of the city's electric and wastewater systems.

Secondary market off in light trading

Meanwhile, in the secondary market, a trader said the market tone was off slightly, even as Treasuries saw some gains on stock losses. Even so, the losses weren't great, he noted. Trading volume was light as the market returned following the Thanksgiving holiday.

Looking to specific trades, Christus Health's 2008B revenue refunding bonds sold through the Louisiana Public Facilities Authority were seen in play Monday. The 6.5% 2030s were seen trading at 6.565%.

In the northeast, the New Jersey State Transportation Trust Fund's 5.75% 2031 bonds were seen trading at 5.789%, and the Long Island Power Authority's series F 4.5% 2028s were seen at 5.804%.

Elsewhere, the Cypress-Fairbanks Independent School District of Texas' 5% 2027s, originally sold in August, were seen trading at 5.042% on Monday.

In other trades, the New Mexico Hospital Loan Council's series 2008A revenue bonds sold for Presbyterian Hospital were in play. The 6.125% 2028s were seen trading at 6.231% Monday.

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