Minnesota Housing sells $60 million with 1.3%-5.9% yields; NYC IDA brings $82.28 million for Mets' stadium

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Jan. 29 - As the week winds down, muni pricing action slowed a bit, led by a $60 million sale of housing bonds from the Minnesota Housing Finance Agency, and the slate of upcoming offerings thinned out substantially.

"We've got our good days and bad days," said one sellside source asked Thursday afternoon about the drop in upcoming offerings.

"We're looking for windows, basically. There may be a few good days here and there, and then the window shuts again."

Even so, Minnesota Housing Finance took advantage of a window to sell $60 million in series 2009A and 2009B residential housing bonds, said Don Wyszynski, director of financial strategy for the agency.

The agency also plans to sell $40 million in series 2009C bonds on Feb. 12, he said.

On Thursday, the agency priced $26.795 million in series 2009A bonds and $33.205 million in series 2009B bonds.

Serial maturities ranged from 2010 to 2019 with corresponding yields of 1.3% to 4.25%. Term bonds due in 2023 and 2028 drew yields of 5.2% and 5.9%, respectively.

A planned amortization class bond fetched an average coupon of 5%.

RBC Capital Markets Corp. and Piper Jaffray managed the negotiated sale.

Proceeds will be used to purchase home mortgages to assist low-income families.

Meet the Mets' new digs

Elsewhere, the New York City Industrial Development Agency priced $82.28 million series 2009 pilot bonds (Aa2/AAA/) Wednesday, according to Danielle Apsilos-Romero, a Citigroup spokeswoman.

The proceeds will be used to fund the construction of Citi Field, and the Mets organization was filled with praise for their sponsor's work.

"The overwhelmingly positive response to today's bond offering reinforces the strength and market confidence in our new ballpark project and Citi's strategic approach in bringing the bonds to market," Mets chief operating officer Jeff Wilpon said in a statement.

Serial bonds with maturities from 2010 to 2019 carry yields of 2.49% to 5.05%, said Apsilos-Romero. The term bonds due in 2029, 2039 and 2046 carry yields of 6.25%, 6.5% and 6.625%, respectively.

Citigroup Global Markets Inc. was lead underwriter for the negotiated sale.

Northeastern bonds price

In other pricing news Thursday, a sellside source confirmed that the Massachusetts Health and Educational Facilities Authority successfully sold $63.28 million in series 2009Y revenue and refunding bonds for Northeastern University.

The full terms of the sale will not be available until Friday, however, the source noted.

The bonds (A2) were sold through lead manager Barclays Capital Inc.

The sale included $37.955 million in series 2009Y-1 revenue bonds and $25.325 million in series 2009Y-2 revenue refunding bonds. The 2009Y-1 bonds are due 2009 to 2019 with term bonds due 2024 and 2029, and the series 2009Y-2 bonds are due 2009 to 2019 with a term bond due 2024.

Proceeds will be used to fund construction and renovations at the university's Richards, Ell and Ryder halls and to refund the university's series F, H and K bonds.

Baton Rouge brings bonds

East Baton Rouge, La., priced a $110 million offering of series 2009A road and street improvement program sales tax revenue bonds late Wednesday, said a sellside source attached to the deal.

The bonds (Aa2/AAA/AAA) were sold through lead managers Citigroup Global Markets and Merrill Lynch & Co.

The bonds are due 2010 to 2030 with coupons from 3% to 5.625% and yields from 1.5% to 5.63%.

Proceeds will be used to widen existing roads and construct new roads.

Massachusetts water bonds ahead

In upcoming offerings, the Massachusetts Water Resources Authority is planning to price $328.88 million in series 2009 revenue and revenue refunding bonds during the week of Feb. 2, said a preliminary official statement released Thursday.

The sale includes $98 million in series 2009A general revenue bonds and $230.88 million in series 2009B general revenue refunding bonds.

The bonds will be sold on a negotiated basis with J.P. Morgan Securities Inc. and Citigroup Global Markets as the senior managers.

The 2009A bonds are due 2010 to 2029 with term bonds due 2034 and 2039. The 2009B bonds are due 2019 to 2029 with term bonds due 2034 and 2039.

Proceeds will be used to make improvements to the state's water infrastructure and to refund outstanding bonds.

Texas Tech sale

Also coming up next week, Texas Tech University plans to bring $173.985 million in revenue financing system refunding and improvement bonds (Aa3//AA) Monday, according to Mary Williams, with First Southwest Co., the university's financial adviser.

RBC Capital Markets and JPMorgan Securities will act as underwriters for the negotiated bonds.

The issue carries maturities from 2009 to 2028.

Proceeds from the sale will be used to acquire or improve school facilities and equipment.

The university is located in Lubbock, Texas.

San Diego building deal

Looking a bit further into the future, the San Diego Regional Building Authority is scheduled to price $142.5 million in series 2009A lease revenue bonds Feb. 11, said a preliminary official statement released Thursday.

The bonds (A1/AA+/AA) will be sold on a negotiated basis with Goldman, Sachs & Co.; Citigroup Global Markets; and Loop Capital Markets LLC as the senior managers.

The maturities for the bonds have not yet been set.

Proceeds will be used to construct and equip some county facilities as well as make a deposit to a debt service reserve fund.

Broward deal coming

In other upcoming deals, Broward County in Florida announced that it will offer $179.955 million in series 2009A water and sewer revenue bonds (Aa3/AA/AA), according to a preliminary statement.

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

The bonds will carry maturities from 2010 to 2029 with a term bond due 2034.

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

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