Dasny prices $418.04 million with yields from 0.7% to 4.82%; Grand Valley State U. gets 5.49% TIC

By Aaron Hochman-Zimmerman

New York, Feb. 5 - The Dormitory Authority of the State of New York led Thursday's municipal issuance with $418.035 million after Wednesday's major issue from the Los Angeles Unified School District.

For its part, the Board of Trustees of Grand Valley State University also hung up a $50.07 million issue of general revenue bonds before what looks to be a quiet primary market Friday.

In the secondary, issues looked generally stronger, a trader said as many paid particular attention to the Los Angeles Unified School District bonds as they pulled tighter.

Dasny sells $418.04 million

Leading Thursday's pricing action, the Dormitory Authority of the State of New York priced $418.035 million in series 2009 state personal income tax revenue bonds, said Marc Violette, spokesman for the authority.

The bonds are due 2010 to 2028 with a term bond due 2038. The coupons on the serials range from 2% to 5%, and yields range from 0.7% to 4.82%. The 2038 bonds have a 5% coupon to yield 5.08%.

The sale included $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. was the senior manager for the sale.

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

Grand Valley U. pulls 5.49% TIC

Also, the Board of Trustees of Grand Valley State University in Michigan priced $50.07 million in general revenue bonds (/A+/), according to Brian Copeland, assistant vice president for business and finance.

The sale went "quite a bit better" than anticipated, Copeland said.

The serial bonds priced with a yield range of 2.6% to 5.97% and an average coupon of 5.43%. The true interest cost was 5.49%.

Serial bonds carry maturities from 2011 to 2019, and term bonds will mature in 2024, 2027, 2029 and 2034.

PNC Capital Markets and National City Capital Markets acted as underwriters for the negotiated bonds.

Proceeds from the sale will be used to construct new student housing facilities.

Grand Valley State University is based in Allendale, Mich.

Broward County gets early bird pricing

Elsewhere in new issuance, Broward County in Florida priced its series 2009A water and sewer revenue bonds (Aa3/AA/AA), according to Michael Geoghegan of the county.

Full terms were not yet available.

The sale had been scheduled for two days, but "very strong" retail demand on the first day precluded the need for the second day, Geoghegan said.

Citigroup and Ramirez & Co. acted as underwriters for the negotiated issue.

Proceeds from the sale will be used to fund improvements to the county's water treatment plants.

The Broward County offices are based in Fort Lauderdale, Fla.

Georgia road bonds coming

Moving to upcoming sales, the Georgia State Road and Tollway Authority is gearing up to sell $600 million in series 2009 revenue bonds on Feb. 18, said a sellside source connected to the deal.

The bonds (Aa3/AA-/AA-) will be sold on a negotiated basis with Barclays Capital Inc. as the senior manager.

The sale includes $480 million in series 2009A federal highway grant anticipation revenue bonds and $120 million in series 2009B federal highway reimbursement revenue bonds.

Both the series 2009A bonds and 2009B bonds are due 2010 to 2021.

Proceeds will be used to fund a portion of a land transportation initiative from the state. The rest will refund the authority's series 2006 and series 2008 revenue bonds as well as refinance the authority's commercial paper notes.

Cleveland water sale

The City of Cleveland also has an offering coming up later this month.

The city is expected to price $166.925 million in series 2009 water revenue bonds sometime ahead of the redemption of its series M bonds on Feb. 27, said a preliminary official statement released Thursday.

The sale, which is expected to close in February, includes $54.735 million in series 2009R bonds (Aaa/VMIG 1/AAA/A-1+/), $26.295 million in series 2009S bonds (Aaa/VMIG 1/AAA/A-1/) and $85.895 million in series 2009T bonds (Aa2/AA/).

The 2009R and 2009S bonds initially bear interest at the weekly rate. The series 2009T bonds are serial bonds.

All of the bonds will be sold on a negotiated basis. The lead manager for the 2009R bonds is Merrill Lynch & Co., and the senior manager for the 2009S bonds is Morgan Stanley & Co. The lead manager for the series 2009T bonds is Loop Capital Markets LLC.

The 2009R bonds are due Jan. 1, 2033; the 2009S bonds are due Jan. 1, 2033; and the 2009T bonds are due 2010 to 2021.

Proceeds will be used to refund the city's series M bonds.

Berks authority to sell $180 million

In other upcoming sales, the Berks County Municipal Authority of Pennsylvania is expected to price $180 million in series 2009 variable-rate revenue bonds for the Reading Hospital and Medical Center, said a preliminary official statement released Thursday.

The sale includes $100 million in series 2009A-1 bonds and $80 million in series 2009A-2 bonds.

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

Both series of bonds initially bear interest at the weekly rate. The 2009A-1 bonds are due Nov. 1, 2044, and the 2009A-2 bonds are due Nov. 1, 2037.

Proceeds will be used to refinance the medical center's series 2005 and 2007 variable-rate revenue bonds.

Milwaukee rolls out deal barrel

Heading west, the city of Milwaukee priced series 2009-N1 general obligation promissory notes (Aa2//AA+), according to city comptroller Richard Li.

The bonds priced Wednesday, but details were not immediately available.

"It went well," Li said of the scheduled sale of $116.725 million in bonds to refinance outstanding commercial paper and make improvements to city's public infrastructure.

LA tightens, market flattens

Meanwhile in trading, the Los Angeles Unified School District bonds, which were sold Wednesday, were on the minds of some traders as the issue tightened up nearly 10 basis points from its pricing, a trader said.

In general, liquidity continues to seep back into the market as "the market continues to flatten," he said.

Any additional risk appetite is helpful for a market that has experienced what he called "historic steepness."

The recent deals to fund the construction of the two new ballparks in New York, Yankee Stadium and Citi Field, performed well on Thursday.

"They were really cheap," the trader said, and "nice liquidity" offered "nice upside for those bonds."

The market did show more strength during the session, but there is still "a little apprehension" among investors over the market's future as the Obama administration wrangles with Congress to approve a bailout plan, he said.

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