Municipals sleep through trading; Texas Transport pushes through $150 million; New York to bring more

By Cristal Cody and Aaron Hochman-Zimmerman

New York, Feb. 26 - Municipal traders struggled to stay awake during Thursday's unusually slow session, a trader said.

"There's not too much going on," a senior trader said.

An underwriter agreed. Even the major deal priced Wednesday from New York City did not trade.

The bonds "won't be freed up until tomorrow," another trader said after the close on Thursday, so "tomorrow could be busier."

For the moment, however, "it's very quiet," he said.

Institutional investors still seemed engaged at the margins, but "retail has lost interest at these levels," he said.

Texas Transport moves $150 million

The Texas Transportation Commission priced $150 million series 2009 first tier revenue refunding put bonds (Baa1/BBB+/BBB+), according to debt management director, Jose Hernandez.

"We sold them all," Hernandez said, pleased with the sale that he predicted would price at 5%.

The bonds sold at par with a 5% yield and a mandatory tender date on Feb. 15, 2011.

The bonds have a final maturity in 2042.

Citigroup Global Markets Inc. acted as the lead underwriter for the negotiated deal.

Proceeds will be used to refund the series 2002B bonds.

The Texas Transportation Commission is located in Austin.

Louisville Parking sells $55.38 million

Elsewhere, the Louisville Parking Authority of River City Inc. priced $55.375 million of revenue bonds in two tranches, according to Lauren Lowe, senior managing consultant for Public Financial Management, Inc.

Public Financial Management acted as adviser for the competitive offer, which was won by Robert W. Baird & Co. "We were pretty pleased with four bids. The authority is pleased," Lowe said.

The $39.265 million series 2009A first mortgage revenue bonds due through 2028 with term bonds due in 2025, 2027, 2029, 2034 and 2039 priced with a true interest cost of 5.262847%.

The $16.110 million series 2009B first mortgage revenue refunding bonds priced with a TIC of 3.590885%.

Proceeds will be used to finance the Louisville Arena Parking Garage and to refinance the outstanding series 1997 first mortgage revenue refunding bonds.

The authority is located in Louisville, Ky.

New York never sleeps

Back in the state of New York, two issuers still have large sales of bonds in the works for the first week of March.

The State of New York expects to sell $456.945 million in general obligation bonds the week of March 2, a source with the issuer said Thursday.

"We're going into the market next week," the source said.

The $418.19 million series 2009A tax-exempt bonds have serial maturities from 2010 through 2039, according to a preliminary official statement.

The $38.755 million series 2009B taxable bonds have serial maturities from 2010 through 2019.

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

The proceeds will be used for water, environmental quality and transit projects.

Also ahead, the New York City Transitional Finance Agency plans to price $400 million in revenue bonds on Wednesday, a source told Prospect News.

The series 2009S4 building aid revenue bonds (//A+) also will be sold through a retail order period on Monday.

The bonds have serial maturities from 2011 through 2029, according to a preliminary official statement.

Goldman, Sachs & Co. and Citigroup Global Markets Inc. are co-senior managers of the negotiated sale.

The proceeds will be used to pay a portion of the costs for the agency's five-year school building plans.

Oregon Higher Education to sell $138.02 million G.O.s

Coming up on Monday, the Oregon State Board of Higher Education expects to price $138.02 million in G.O. bonds (Aa2/AA/AA), according to a sale calendar.

The $87.535 million series 2009A and $50.485 million series 2009B bonds have serial maturities from 2009 through 2028 and terms due in 2033 and 2038, according to a preliminary official statement.

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

The proceeds will be used for university projects and to refund outstanding G.O. bonds.

Boston to price $123.51 million G.O.s

In other sales, Boston plans to price $123.505 million in G.O. bonds through a competitive sale on March 5, according to a preliminary official statement released Thursday.

The $100 million series 2009A bonds have serial maturities from 2010 through 2029.

The $23.505 million series 2009B bonds have serial maturities from 2010 through 2019.

Public Financial Management is the city's financial adviser.

The proceeds will be used to fund various capital projects and to refund the outstanding series 1998C, 2001A and 2002A G.O. bonds.

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