Massachusetts to sell $661.89 million in G.O.s Thursday; Los Angeles MTA will price $288.3 million

By Cristal Cody and Sheri Kasprzak

New York, Sept. 2 - The muni market got back down to business Tuesday following the Labor Day holiday, but action remained spotty.

This seems normal to at least one market source reached Tuesday afternoon.

"In a short week, you do tend to see less than you normally would," he said. "But most [issuers] seem to be getting stuff done later in the week and into next week. I don't see it as a slowdown really."

Heading up this week's action is a rather large deal from the Commonwealth of Massachusetts. The state will price its previously announced $661.89 million in series 2008A general obligation bonds on Thursday, said a source at the issuer Tuesday.

The bonds had a retail order period Tuesday, but the institutional investors will get a crack at the bonds on Thursday, the insider said.

Citigroup Global Markets is the lead manager for the negotiated offering.

The bonds are due 2009 to 2028 with term bonds due 2033 and 2038.

Proceeds will be used to reimburse or fund costs within the state's current capital spending plan and to refund the state's series 2007D-1 and 2007D-2 auction-rate bonds.

Massachusetts Housing sale

Also out of Massachusetts, the Massachusetts Housing Finance Agency is getting ready to price its $187.91 million in single-family housing revenue bonds this week, said a calendar of upcoming deals.

The bonds (Aa2/AA/) will be sold through senior manager Morgan Stanley.

The sale includes series 136 bonds, which are due 2010 with a term bond due 2023; series 137 bonds, which are due 2009 to 2012; series 138 bonds, which are due 2028, 2033 and 2039; and series 139 bonds, which are due 2013 to 2018 with term bonds due 2023, 2028, 2033 and 2037.

Proceeds will be used to buy mortgage loans and to refund prior obligations.

Another housing sale this week comes from the Delaware State Housing Authority, which plans to price $102 million in single-family mortgage revenue bonds later in the week, according to a new issue calendar.

The bonds will be sold on a negotiated basis with George K. Baum & Co. as the lead manager.

The full details were not immediately available.

Proceeds will be used for the purchase of mortgage loans.

L.A. County MTA bonds

Looking a bit farther ahead, the Los Angeles County Metropolitan Transportation Authority plans to sell $288.3 million in 2008 sales tax revenue refunding bonds, said a preliminary official statement released Tuesday.

The bonds (VMIG 1/A-1+/) will be sold on a negotiated basis with De La Rosa & Co. as the senior manager for the series 2008A-1 and 2008B bonds; Goldman, Sachs & Co. as the senior manager for the series 2008A-2 bonds; and Morgan Stanley as the senior manager for the series 2008A-3 and 2008A-4 bonds.

The sale includes $65.7 million in series 2008A-1 bonds, $65.8 million in series 2008A-2 bonds, $65.75 million in series 2008A-3 bonds, $65.825 million in series 2008A-4 bonds and $25.225 million in series 2008B bonds.

All of the 2008A bonds are due July 1, 2031, and the 2008B bonds are due from 2009 to 2031.

Proceeds will be used to refund the authority's outstanding series 2005C-1, 2005C-2, 2005C-3 and 2005C-4 bonds.

Arizona Transportation to price $176.32 million

Also coming up, the Arizona Transportation Board intends to price $176.32 million highway revenue bonds, according to a preliminary official statement.

The series 2008B bonds (Aa1/AAA/) have serial maturities from 2023 through 2033.

Citigroup Global Markets is the senior manager of the negotiated sale.

Proceeds will be used to finance portions of the board's five-year capital program.

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