Billions in sales planned for Thursday; New Jersey Transportation Trust Fund Authority to sell $750 million

By Sheri Kasprzak

New York, Nov. 10 - Despite a shorter week for the municipal bond market, new issue activity is ready to take off later this week, with billions in planned sales coming up on Thursday alone. Even with the market shut down for Veterans Day on Tuesday, issuers are coming out in force to sell, in some cases, long-awaited offerings.

"It's been a tough time to get new deals out there," said one sellside source reached Monday.

"I think that there is so much stuff up for pricing this week is a sure sign that muni issuers are feeling more confident in the market."

Since September, some issuers have opted to sit on planned offerings, waiting for a more stable market. Investors - retail investors in particular - now seem to be particularly attracted to the long end, said the sellsider. With yields soaring beyond 6% on some 30-year bonds, this is hardly a surprise, the sellsider noted.

Heading up Thursday's loaded calendar is a $750 million offering of series 2008 transportation system bonds from the New Jersey Transportation Trust Fund Authority.

The bonds (A1/AA-/A+) will be sold on a negotiated basis with Merrill Lynch & Co. as the lead manager and are due from 2023 to 2038.

Proceeds will be used for capital projects and maintenance.

Also out of the Northeast, the Dormitory Authority of the State of New York is expected to sell its previously announced $659.92 million in series 2008 personal income tax revenue bonds Thursday.

The bonds (//AA-) will be sold through lead manager Morgan Stanley.

The authority plans to use the proceeds for capital improvements at state educational facilities and for refunding outstanding bonds.

New Mexico to sell $500 million

In other planned pricings set for Thursday, the State of New Mexico is slated to bring $500 million in series 2008-09 tax and revenue anticipation notes, said a preliminary official statement.

The notes (MIG 1/SP-1+/) will be sold on a competitive basis with Fiscal Strategies Group as the financial adviser.

The notes mature June 30, 2009.

Proceeds will be used to pay for capital expenses until taxes are collected.

Looking south, the Solid Waste Authority of Palm Beach County in Florida is set to sell $343.57 million in series 2008 improvement revenue bonds on Thursday, said a calendar of sales.

The bonds (Aa3/AA/) will be sold on a negotiated basis with Citigroup Global Markets as the senior manager.

The sale includes $214.875 million in series 2008A bonds, which are due 2009 to 2024, and $128.695 million in series 2008B bonds, which are due 2024 to 2028.

Proceeds will be used for the refurbishment of waste-to-energy facilities, the design of a new resource recovery facility, the construction of a new transfer station, the acquisition of a landfill site and a deposit to a debt service reserve fund.

Christus Health to sell $328 million

Also coming up Thursday, the Christus Health Group is scheduled to sell its previously announced $328.285 million in series 2008 revenue refunding bonds, said a sales calendar.

The bonds will be sold through the Tarrant County Cultural Education Facilities Finance Corp. and the Louisiana Public Facilities Authority.

The sale includes $283.8 million in series 2008A bonds for Tarrant and $44.485 million in series 2008B bonds for Louisiana.

The bonds will be sold through lead manager Citigroup Global Markets.

Proceeds will be used to refund existing Texas and Louisiana bonds issued for Christus Health and to make a deposit to a debt service reserve fund.

Virginia's $265.62 million G.O.s

Elsewhere, the Commonwealth of Virginia is slated to price $265.62 million in series 2008B general obligation bonds Thursday, said a sales calendar.

The bonds (Aaa//AAA) will be sold through lead managers Merrill Lynch and BB&T Capital Markets.

The bonds are due 2009 to 2033.

Proceeds will be used for capital projects, including educational, park and recreational facilities, as well as for revenue-producing capital projects at the commonwealth's higher educational institutes. The rest will be used for refunding existing obligations.

Also coming up on Thursday, the City of Dallas plans to price its previously announced $255.71 million in series 2008 G.O. bonds on Thursday, the issuer told Prospect News Monday.

The bonds (Aa1/AA+/) will be sold on a negotiated basis with Goldman, Sachs & Co. as the lead manager.

Proceeds will be used for various public improvement projects throughout the city.

JEA to sell bonds

In other pricing news, JEA of Florida is expected to price $79.86 million in series 2008A bulk power supply system revenue bonds Thursday, according to a calendar of upcoming deals.

The bonds (Aa2) will be sold on a negotiated basis with J.P. Morgan Securities Inc. as the senior manager.

Proceeds will be used for the repayment of JEA's advances under a revolving line of credit.

Arizona school bonds to price

Moving to Wednesday's activity, pricing action then will be led by a $593 million sale of certificates of participation from the Arizona School Facilities Board, said a sales calendar.

The bonds (A1/AA-/) will be sold on a negotiated basis with RBC Capital Markets as the lead manager.

Proceeds will be used for the acquisition of leasehold interests in school sites and facilities.

Later this week, the Plano Independent School District in Texas plans to sell $180 million in series 2008A unlimited tax school building bonds, said a calendar of upcoming sales.

The bonds (/AA/) will be sold on a negotiated basis with Morgan Keegan & Co. as the lead manager.

The bonds are due from 2010 to 2034.

Proceeds will be used for the construction, acquisition, equipment and renovation of school buildings in the district, as well as for the acquisition of building sites for future schools. The rest will be used for the purchase of new school buses.

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