Washington Suburban Sanitary District brings $180 million; California may upsize RANs sale

By Sheri Kasprzak

New York, Sept. 22 - Municipals held to a firmer tone, even though yields held steady for the duration of the day.

"There's a firmer tone, without a doubt," one trader said in the afternoon.

"Yields are basically unchanged."

In the secondary market, the trader noted that there was little activity to report, despite the firmer tone.

"Primary is really taking center stage," the trader said.

Among the secondary trades, the Gainesville Utility System of Florida saw its recently priced series 2009B Build America Bonds moving. The 5.655% 2039 bonds were seen at 5.45%. The 5.605% 2029s were seen at 5.374%.

Coming up on Wednesday, the State of California is expected to bring at least $8.8 billion in series 2009/2010 revenue anticipation notes, but that offering may be upsized. The sale currently includes $3.5 billion in notes due May 25, 2010 and $5.3 billion in notes due June 23, 2010.

A sellside source said the deal may be upsized.

"I have heard that the larger portion of the notes may have a cap of $6 billion, but I'm not sure if that will be the case or not," the sellsider said.

"I have no doubt there will be enough interest. Just from the [retail order period], there's been enough interest to reach that amount [$9.5 billion]."

The offering will already be the largest sale of the year, outpacing the State of Texas' recent $5.5 billion sale of tax and revenue anticipation notes.

Washington sanitation bonds price

In Tuesday's busy primary action, the Washington Suburban Sanitary District in Maryland brought $180 million in series 2009 consolidated public improvement bonds in two tranches.

Wachovia Bank NA was the winning bidder for the competitive sale. The true interest cost was 2.04% for the 2009A bonds and 4.86% for the 2009B Build America Bonds.

The offering included $90 million in series 2009A tax-exempt bonds and $90 million in series 2009B Build America Bonds.

The 2009A bonds are due 2010 to 2019 with coupons from 3% to 5%, and the 2009B bonds are due 2020 to 2029 with coupons from 4.35% to 5%.

Proceeds will be used to construct and reconstruct water supply facilities within the district as well as replace short-term debt.

Miami-Dade school deal prices

Elsewhere, the School District of Miami-Dade County in Florida priced $150 million in series 2009 tax anticipation notes on Tuesday, according to a term sheet released by the Municipal Securities Rulemaking Board.

The notes are due 2010 and have a 1% coupon to yield 0.38%.

De Lara Associates and Public Resources Advisory Group Inc. were the financial advisers for the competitive sale. The winning bidder could not be ascertained by press time Tuesday.

Proceeds will be used to fund capital expenditures ahead of the collection of taxes.

Murfreesboro sells $131.6 million

Also down South, the City of Murfreesboro, Tenn., priced $131.597 million in series 2009 general obligation water and sewer electric system revenue bonds on Tuesday, said a pricing sheet.

The bonds (A1/AA/) were sold in three tranches through Merrill Lynch & Co. Inc.

The series 2009A bonds are due 2010 to 2020 with coupons from 2% to 5%, and the 2009B bonds are due 2010 to 2021 with coupons from 2% to 3.375%. The 2009C bonds are due 2010 to 2026 with coupons from 2% to 5%.

Proceeds will be used to fund water and sewer improvements as well as to refund existing debt.

Brown University prices $78 million

In other bond sales, the Rhode Island Health and Educational Building Corp. sold $78 million in series 2009A higher education facilities revenue bonds for Brown University, said a pricing sheet.

The bonds (Aa1/AA+/) were sold through J.P. Morgan Securities Inc.

The bonds are due Sept. 1, 2039 and have a 5% coupon with a 4.15% yield.

Proceeds will be used to refund the university's series 2006 commercial paper notes that are due on or before Nov. 13 as well as renovate campus buildings and residence halls and construct new buildings.

Brown University is located in Providence, R.I.

New York housing deal complete

In other pricing news, the New York State Housing Finance Agency priced Tuesday $80.595 million in series 2009B affordable housing revenue bonds, said a pricing sheet.

The bonds (Aa2) were sold through JPMorgan.

The bonds are due 2010 to 2019 with term bonds due 2012, 2024, 2029, 2034, 2041 and 2045.

The serial bonds have coupons from 0.7% to 3.55%, all priced at par. The 2012 bonds have a 1.9% coupon, the 2024 bonds have a 4.15% coupon, and the 2029 bonds have a 4.5% coupon, also priced at par. The 2034 bonds have a 4.8% coupon, the 2041 bonds have a 4.85% coupon, and the 2045 bonds have a 5% coupon, priced at par.

Proceeds will be used to fund mortgage loans, construct new projects and acquire or rehabilitate projects.

Cedars-Sinai sale planned

Moving to upcoming sales, the California Health Facilities Financing Authority plans to price $535 million in series 2009 revenue bonds for Los Angeles' Cedars-Sinai Medical Center, said a preliminary official statement. The pricing is expected for the week of Sept. 28.

The bonds (A2//A+) will be sold on a negotiated basis with Merrill Lynch and Goldman, Sachs & Co. as the lead managers.

The bonds are due 2010 to 2024 with term bonds due 2029, 2034 and 2039.

Proceeds from the sale will be used to construct, equip and renovate health facilities operated by Cedars-Sinai.

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