More supply for municipal market; District of Columbia prices; L.A. Community College plans $450 million

By Cristal Cody and Aaron Hochman-Zimmerman

New York, March 11 - The municipal marketplace braced itself for another wave of supply.

The $445.09 million revenue and revenue refunding bonds from the District of Columbia priced and continued a string of major issues that began in the Commonwealth of Pennsylvania on Tuesday.

"It's nice to be busy for once," an underwriter said.

Investors expect the streak to continue on Thursday with the $800 million in bonds from the University of California.

"We always like more supply," another underwriter said. "It makes things easier to sell."

Plus, the market seems to be digesting the new supply without much trouble, he said.

Seattle sells $99.86 million

The City of Seattle priced $99.86 million series 2009 general obligation improvement and refunding bonds, according to Michael van Dyck, city debt manager.

The issue went "great," said van Dyck.

The bonds priced with a true interest cost of 3.32%, or close to what the city expected, he said.

Barclays won the auction for the bonds over eight other bidders. Seattle-Northwest Securities Corp. acted as financial adviser for the deal.

The bonds carry serial maturities from 2010 to 2034.

Proceeds will be used to fund projects and to refund the outstanding series 1996 Pike Place special obligation bonds.

Charleston moves $50.03 million

The Charleston Commissioner of Public Works in South Carolina priced $50.03 million series 2009 waterworks and sewer system refunding revenue bonds, according to Wesley Ropp, director of financial services.

The bonds priced at a TIC of 3.389552%.

Banc of America Securities LLC acted as lead underwriter for the negotiated bonds, which carry serial maturities from 2010 to 2018.

Proceeds will refund a portion of the city's outstanding series 1998 refunding and capital improvement revenue bonds with serial maturities from 2010 through 2024.

L.A. Community College to sell $450 million G.O.s

Looking to major offerings ahead, the Los Angeles Community College District plans to sell $450 million in G.O. bonds (Aa2/AA/), according to preliminary official statements.

The sale includes $350 million in series 2009A bonds and $100 million in series 2009B bonds.

Citigroup Global Markets Inc. is the senior manager of the negotiated sale of the series 2009A bonds.

Goldman, Sachs & Co. is the senior manager of the negotiated sale of the series 2009B bonds.

The proceeds will be used to finance the prepayment and current refunding of the series 2009A bond anticipation notes and to acquire, construct furnish and equip district facilities.

New York Transitional Finance offers $200 million

Coming up, the New York Transitional Finance Authority intends to price $200 million in senior bonds on Tuesday, the issuer told Prospect News.

The bonds also will be offered through a two-day retail order period that begins Friday, said Raymond Orlando, director of investor relations.

The $181 million series 2009A and $19 million series 2009B bonds have serial maturities from Nov. 1, 2009 through Nov. 1, 2019.

Barclays Capital Inc. is the senior manager of the negotiated sale.

The proceeds will be used to redeem outstanding debt.

Also for that week, the Modesto Irrigation District in California expects to price $130.055 million in certificates of participation on March 19, a source with the issuer said Wednesday.

The series 2009A COPs (A1/A+/A+) have serial maturities from 2016 through 2029 and terms due in 2034 and 2039.

J.P. Morgan Securities Inc. is the senior manager of the negotiated sale.

The proceeds will be used to acquire and construct improvements to the district's electric system.

Metropolitan Washington Airports to sell $235 million

The Metropolitan Washington Airports Authority in Washington, D.C., intends to price $235 million in revenue bonds, according to a preliminary official statement.

The series 2009B bonds have serial maturities from 2010 through 2029.

Siebert Brandford Shank & Co., LLC is the senior manager of the negotiated sale.

The proceeds will be used to fund capital airport projects, refinance a portion of the authority's outstanding series one revenue commercial paper notes and pay to terminate interest rate swap agreements with Wachovia Bank and Bank of Montreal.

Lifespan to price $123.77 million revenue bonds

Also coming down the pike are $123.765 million in hospital financing revenue bonds for the Lifespan Obligated Group.

The series 2009A term bonds, due in 2030 and 2039, will be sold through the Rhode Island Health and Educational Building Corp., according to a preliminary official statement.

Morgan Stanley & Co. Inc. is the senior manager of the negotiated sale.

The proceeds will be used to acquire, construct, renovate, expand and equip hospital and health-care facilities.

Vandy's $330 million revenue bonds

On Wednesday, Vanderbilt University expected to price $330 million revenue bonds through the Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County in Tennessee, said Betty Price, interim vice chancellor for finance.

Pricing details for the series 2009A and 2009B fixed-rate bonds (Aa2/AA/AA) were not immediately available.

Merrill Lynch & Co. was the senior manager of the negotiated sale.

The proceeds will be used to refund the series 2005B1 flexible-rate bonds, the series 2005B2 term-rate bonds and outstanding commercial paper as well as to finance capital improvements to university facilities.

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