Texas Tech brings $170.83 million to yield 0.54%-5.35%; King County, Wash., sells $51.33 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Feb. 2 - Monday may have been Groundhog Day, but the weather-predicting rodent couldn't possibly tell if the municipals market was in for better volume in February after a surge of volume in January. Still, some market insiders of the human variety were fairly confident February would not see quite the activity as the month prior.

"If I had to guess, I'd say, in terms of actual deal volume, I think we will see fewer [offerings] in February," said one sellsider reached Monday afternoon.

"From what I've seen, there are a few big sales coming up."

Meanwhile, conditions improved over in the secondary market, buoyed by a better-performing Treasury market.

New-issue action on Monday was very light, led by a $170.825 million sale of revenue financing system refunding and improvement bonds from Texas Tech University.

The university sold the bonds (Aa3//AA) through lead managers RBC Capital Markets Inc. and J.P. Morgan Securities Inc. The bonds are due 2009 to 2029 with coupons from 3% to 5% and yields from 0.54% to 5.08%, said a sellside source close to the offering. The sale also included a term bond due 2033 with a 5.125% coupon to yield 5.25% and a term bond due 2038 with a 5.25% coupon to yield 5.35%.

The bonds priced with a true interest cost of 4.25% and an average coupon of 4.94%.

Proceeds will be used to acquire or improve school facilities and equipment.

King County brings $51 million

In other pricing news from Monday, King County in Washington brought to market $51.325 million in series 2009 limited tax general obligation refunding bonds in a competitive sale, said Nigel Lewis of the county's treasury department.

Hutchison, Shockey, Erley & Co. was the winning bidder for the deal with a 2.49% TIC. Foster Pepper PLLC was the financial adviser.

Lewis said there were 13 bidders for the offering.

The bonds (Aa1/AAA/AA+) are due 2009 to 2019 with coupons from 2% to 4% and yields from 1% to 3.08%.

Proceeds will be used to refund the county's series 1998A limited tax G.O. refunding bonds.

Tuesday's pricings heat up

The bulk of the week's pricing action will be found on Tuesday and Wednesday.

Tuesday brings a couple of the largest sales of the week, including a $613.85 million sale of 2009 G.O. bonds from the State of Georgia.

Merrill Lynch & Co. is the senior manager for the sale, which includes $61.795 million in series 2009A bonds and $552.055 million in series 2009B bonds.

The 2009A bonds are due 2010 to 2014, and the 2009B bonds are due 2010 to 2029.

Proceeds will be used to improve and develop lands, waterways, buildings, highways and state facilities.

Another large offering planned for Tuesday is a $418.035 million sale of state personal income tax revenue bonds from the Dormitory Authority of the State of New York. The authority is set to price $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.

Citigroup Global Markets Inc. leads the negotiated sale.

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

Beavercreek sale ahead

In other upcoming offerings, the Beavercreek City School District of Greene and Montgomery counties in Ohio is expected to price $69 million in school improvement unlimited tax obligation bonds (/SP-1+/), according to a preliminary statement.

The notes are due Aug. 18, 2009.

Fifth-Third Securities Inc. is the senior manager for the negotiated deal.

Proceeds will be used to acquire and improve school equipment and facilities.

Secondary improves with Treasuries

Looking to the secondary market Monday, traders said the tone of the market was a bit improved over the previous week with yields down a few basis points on the whole.

"It's looking a little better today," one trader said.

"We're following Treasuries, and it seems to be a little better overall."

Volume, the trader noted, was light to kick off the week, however.

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