Baltimore County prices $97.54 million; Kentucky State Property & Building to bring $306.92 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Feb. 10 - Baltimore County led the day in the municipal primary market by pricing $97.535 million with a true interest cost of 1.95%.

Still, investors around the category and around the world held laser-like focus on Treasury secretary Tim Geithner as he attempted to sell the administration's stimulus plan.

The result was a sell-the-news thrashing of most market sectors. Treasury yields burrowed deeper, and in municipal trading "it's basically a continuation of a flight to quality," Robert Cerisa, executive vice president of Grigsby & Associates, said on the heels of the highly anticipated speech.

"Geithner fell short of many expectations," he said about the sales pitch, which he called "too general" and "too vague."

"He didn't get into the particulars," Cerisa said as investors were "gravitating to fixed income."

High-quality municipals and solid AAA-rated credits were favored across the board, he said.

Baltimore leads off

Baltimore County in Maryland priced $97.535 million 2009 refunding series general obligation bonds with a TIC of 1.95%, according to Robert Burros, county investment administrator.

The bonds came in three tranches: $24.515 million in metropolitan district bonds, $26.880 million in consolidated public improvement bonds and $46.140 million in pension funding bonds.

The bonds carry maturities from 2009 to 2018 and a yield range of 0.59% to 2.61%.

J.P. Morgan Securities Inc. was the winner of the competitive sale. Public Resources Advisory Group acted as financial adviser.

Proceeds from the deal will be used to refund outstanding bonds.

The Baltimore County seat is located in Towson, Md.

"It went really well," said the deal's financial adviser, who noted the 8.83% of savings.

"It was one of seven bids," she said about JPMorgan, which finally offered the best rates.

"It was a great transaction," she added.

Preliminary results

The City of Dallas worked to finish the results of a $324.94 million bond offering (Aa2/AAA/) before a city council meeting on Wednesday, according to David Cook, chief financial officer.

J.P. Morgan Securities and Siebert Brandford Shank & Co. acted as lead managers of the negotiated sale.

Proceeds are slated to refund the city's series 1998 bonds and fund construction costs related to the civic center project.

Heading east to the Gulf Coast, the Florida Board of Education priced its series 2008B public education outlay bonds (Aa1/AAA/AA+).

Details of the competitive sale were also not immediately available.

The bonds were expected to carry maturities from 2010 to 2038.

Kentucky building an offering

Looking to later in the week, the Kentucky State Property & Building Commission is scheduled to price $306.915 million in revenue and revenue refunding bonds Thursday, said a preliminary official statement.

The sale includes $273.99 million in Project No. 93 revenue and revenue refunding bonds and $32.925 million in Project No. 94 road fund revenue bonds.

The bonds will be sold on a negotiated basis. The senior manager for both sales is Citigroup Global Markets Inc.

The Project No. 93 bonds are due from 2011 to 2024 with a term bond due 2029. The Project No. 94 bonds are due 2010 to 2021.

Proceeds from the Project No. 93 bonds will be used to construct a variety of buildings at several Kentucky universities. Proceeds from the Project No. 94 bonds will be used to replace the state Department of Vehicle Regulation's Automated Vehicle Inspection System as well as to expand the runway at the Blue Grass Airport in Lexington.

Mass Bay Transportation sale

Also coming up, the Massachusetts Bay Transportation Authority is slated to price $114.37 million in series 2009A senior sales tax bonds, according to a preliminary official statement.

The bonds are expected to price the week of Feb. 23, said a sellsider close to the offering.

"We're not going to speculate on yields, but we're aiming to get the best pricing we possibly can for them," the sellsider said.

"We feel this is a good time to price these bonds."

The sale includes $79.645 million in series 2009A variable-rate demand obligations (Aa2/VMIG 1/A-1+/) and $34.725 million in series 2009B bonds (Aa2/AAA/).

The bonds will be sold on a negotiated basis with Citigroup Global Markets and Ramirez & Co. Inc. as the lead managers.

The 2009A VRDOs are due July 1, 2030, and the 2009B bonds are due 2017 to 2018.

Proceeds will be used to refund existing debt.

NYS Thruway deal

In other upcoming deals, the New York State Thruway Authority plans to price $206.05 million in series 2009A second general highway and bridge trust fund bonds, said a preliminary official statement released Tuesday.

The bonds (/AA/AA-) will be sold on a negotiated basis with Banc of America Securities LLC and Jackson Securities Inc. as the senior managers.

The bonds are due 2010 to 2029.

Proceeds will be used to reimburse the state for costs to be made by the state Department of Transportation for the state's highway and bridge capital program.

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