Triborough Bridge and Tunnel Authority sells $325 million; Cherry Creek ISD brings $101.78 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Jan. 27 - A fairly active day for municipal pricings was led Tuesday by the Triborough Bridge and Tunnel Authority of New York, which sold $325 million in upsized series 2009A-2 general resolution revenue bonds and is planning to sell another $100 million in February.

Meanwhile, new issue action continued to trail off, with few offerings announced for the coming weeks. One sellsider speculated Tuesday that the bulk of the offerings from early in January came from offerings held over in 2008.

"I don't think we're lacking for new deals," he noted.

"I think it's actually normalizing a little. There was a load of stuff that was postponed late last year and now that those bonds have priced, things are basically back to where they're supposed to be. This is normal volume for the beginning of the year. I don't see it as an indicator of bad market conditions."

Looking back to the Triborough Bridge bonds, the authority sold $325 million of the revenue bonds - upsized from the planned $250 million, said Jeremy Soffin, spokesman for the Metropolitan Transportation Authority. The authority also plans to sell $100 million in series 2009A-1 general revenue mandatory tender bonds Feb. 11, Soffin said.

The 2009A-2 bonds (Aa2/VMIG 1/AA-/A-1+/AA/F1+) are due 2010 to 2038 and priced with yields from 1.35% to 5.48%.

The authority sold $142 million of the bonds during a retail order period Monday, and the deal was increased by $75 million due to demand from institutional investors Tuesday.

Barclays Capital Inc. and Loop Capital Markets LLC were the lead managers for the negotiated deal.

Proceeds will be used for upcoming projects and for refinancing existing projects.

Cherry Creek ISD prices $101.775 million

In other pricing action, the Cherry Creek School District No. 5 of Colorado priced $101.775 million series 2009 general obligation bonds (Aa2/AA/) Tuesday, said Jim Manire of James Capital Advisors, the financial adviser for the sale.

The bonds carry maturities from 2009 to 2028 with yields from 0.75% to 4.88%.

"We had big interest [and a] strong response," Manire said. "The district was very pleased."

J.P. Morgan Securities Inc. bested 10 other bidders to purchase the competitive bonds.

Proceeds will be used to renovate, repair and add to existing school facilities, construct new school buildings and improve buildings or grounds.

Elsewhere, the Los Angeles Department of Water and Power had been slated to sell $150 million in series 2009 water system revenue bonds (Aa3/AA/AA) Tuesday, but the full terms of the sale were not immediately available.

The bonds were sold through lead managers J.P. Morgan Securities and Morgan Stanley & Co. Inc. and are due 2016 to 2029 with term bonds due 2034 and 2038.

Proceeds will be used to improve the city's water system.

Washington public improvement bonds

In other news, the Washington Suburban Sanitary District of Maryland priced $165 million 2009 consolidated public improvement bonds, according to J.D. Noell, group leader for disbursements.

Yields averaged 3.65% over the maturities, which ranged from 2009 to 2029, but full details were not immediately available.

Proceeds will be used to fund the construction or repair of sewage facilities or to replace short-term bond anticipation notes.

Indiana Bond Bank sale

In other pricing news from the week, the Indiana Bond Bank sold $357.445 million in series 2009A advance funding program notes on Monday, said an official statement released Tuesday.

The notes (MIG 1/SP-1+/) were sold through senior manager J.P. Morgan Securities.

The notes are due Jan. 5, 2010 and have a 2% coupon to yield 1.1%.

Proceeds will be used to purchase warrants from state entities ahead of ad valorem tax collection.

Secondary firms up

Heading to the secondary market, the tone was decidedly firmer after hitting some rough patches last week.

"If anything, we're down a few basis points, especially longer out," said one trader.

"Most short-term bonds we've seen today have been pretty flat. Better than last week, to be sure. Volume [is] still strong. A big improvement from a few weeks ago."

Moving to specific trades, Tarrant County Cultural Education Facilities Finance Corp. of Texas saw its 2009 refunding revenue bonds for Baylor Health System in play Tuesday. The 6.25% 2029s were seen trading at 6.118%.

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