New York State Urban Development's $1.1 billion bond sale ahead; Chicago to sell delayed bonds

By Sheri Kasprzak

New York, Jan. 5 - With the holiday season firmly behind us, municipals action heated up on Monday with billions in sales planned for the week ahead.

Most of the activity comes at the end of the week from the New York State Urban Development Corp., which will sell nearly $1.1 billion in state personal income tax revenue bonds Friday.

Still, the volume of offerings may be steadily trickling in as offerings that were delayed in late 2008 are finally brought to the table.

"A lot of cities that were planning bigger deals are going to be rescheduling them this week and into the rest of the January," said one sellside source reached Monday afternoon.

"It's a busy time, even though the year is just getting started."

The City of Chicago is among the municipalities moving forward with delayed deals. The city plans to price $590.94 million in series 2008 general obligation bonds later this month. The sale had been planned for December but was delayed due to market conditions. The offering is now expected to price Jan. 12.

William Blair & Co. is the senior manager for that sale, and proceeds will be used mostly for infrastructure improvements, transportation improvements, the construction and repair of municipal buildings and facilities and the payment of judgments and other legal settlements against the city.

New York State sale

Looking back to the New York State Urban Development offering, the corporation plans to price $1.098 billion in series 2009 state personal income tax revenue bonds on Friday, according to a sales calendar.

The negotiated offering will be conducted through senior manager Citigroup Global Markets.

Proceeds will be used for community revitalization, technology projects under the New York State Technology and Development Program as well as for grants and loans.

Also ahead this week, New Castle County in Delaware is expected to sell $110.74 million in series 2009A G.O. bonds Tuesday, said a sales calendar.

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

The bonds are due 2009 to 2028 with term bonds due 2033 and 2039.

Proceeds will be used for capital improvement projects and refunding the county's series 1998 bonds.

NYC Transitional Finance deal

In other upcoming deals for the month, the New York City Transitional Finance Authority is gearing up to price $300 million in series 2009 building aid revenue bonds on Jan. 13, said a calendar of upcoming offerings.

A retail order period will begin for the bonds on Friday.

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

Proceeds will be used for paying a portion of some five-year school plans throughout the city.

Miami-Dade school bonds

Also coming up, the School District of Miami-Dade County in Florida is expected to sell $132 million in series 2009 revenue anticipation notes Jan. 15, said a notice of sale released Monday.

The notes will be sold on a competitive basis with DeLara Associates as the financial adviser.

The notes are due Jan. 28, 2010.

Proceeds will be used to renew a portion of one or more loans financed or refinanced by the district's series 2008B RANs as well as to retire a portion of the 2008B RANs, which are due Jan. 30, 2009.

In other school bonds, the Tyler Independent School District of Texas is scheduled to sell $124.865 million in series 2009 unlimited tax school building bonds Jan. 12, said a calendar of upcoming offerings.

The bonds will be sold on a negotiated basis with Merrill Lynch as the senior manager.

The bonds are due 2009 to 2034.

Proceeds will be used for the acquisition, construction, equipment and renovation of school buildings throughout the district.

Secondary action light

Moving to the secondary market, a trader said Monday afternoon that trading volume remained light and the tone of the market was relatively flat.

"It's trending very flat lately," he said. "We're seeing some trades here and there, but it has been very quiet the past few weeks."

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