New issue activity stalls as Obama is inaugurated; Triborough Bridge and Tunnel plans $400 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Jan. 20 - As the presidency of the United States changed hands Tuesday, municipal issuers held back - possibly awaiting the new administration's planned economic stimulus package, market insiders said.

"There's plenty of stuff coming up," said one market source reached in the afternoon.

"I think a lot of issuers are wondering what [President Barack] Obama is going to do with this stimulus package. What we've seen so far has fallen short of what a lot of people were expecting, so it's a wait-and-see game at this point. The higher-rated issuers are still going to go on with their issues, if you ask me. I don't think it will impact them that much."

Another market source agreed that more attention was being paid to the new president than to pricing municipals Tuesday.

"Everyone is looking at Obama today," he noted.

Heading up a slate of upcoming sales is a $400 million offering of series 2009 bonds from the Triborough Bridge and Tunnel Authority of New York.

The sale includes $150 million in series 2009A-1 general revenue mandatory tender bonds and $250 million in series 2009A-2 general revenue bonds, according to a preliminary official statement.

Pricing on the bonds is expected for January.

The bonds will be sold on a negotiated basis with Barclays Capital Inc. and Loop Capital Markets LLC as the senior managers.

Proceeds will be used to finance the authority's projects and refinance existing projects.

D.C. water sale ahead

Also coming up, the District of Columbia Water and Sewer Authority is gearing up to issue $300 million in series 2009A public utility senior lien revenue bonds (Aa3/AA/AA-), said a preliminary statement.

The negotiated bonds will be offered via Morgan Stanley & Co.

Proceeds from the sale will be used to make improvements to the system as well as refinance existing debt.

In other upcoming deals from D.C., the Washington Suburban Sanitary District plans to price $165 million 10-year 2009 consolidated public improvement bonds on Jan. 27, according to a preliminary statement.

The bonds will be sold competitively with Public Advisory Consultants Inc. as the financial adviser.

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

Wednesday's pricing action

Looking to Wednesday's upcoming sales, the long-awaited $420 million sale of series 2009-1 second-lien special tax obligation refunding bonds from the State of Connecticut are set to price.

Goldman, Sachs & Co. and Banc of America Securities LLC are the senior managers for that sale. The bonds are due 2010 to 2022, and proceeds will be used for transportation infrastructure costs.

Also on Wednesday, San Antonio will bring $175 million in series 2009 water system revenue and refunding bonds through Citigroup Global Markets Inc. and J.P. Morgan Securities Inc.

The School District of Miami-Dade County in Florida will price its delayed $132 million in series 2009 revenue anticipation notes competitively.

Cherry Creek school bonds

Moving to next week's pricing action, the Cherry Creek School District No. 5 in Colorado is expected to price $101.775 million in series 2009 general obligation bonds Jan. 27, said a preliminary official statement released Tuesday.

The bonds (Aa2/AA/) will be sold on a competitive basis with Public Finance Associates as the financial adviser.

The bonds are due 2009 to 2028.

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

Wisconsin's Ministry Health deal

Also ahead, the Wisconsin Health and Educational Facilities Authority plans to sell $95 million in series 2009A variable-rate revenue bonds for Ministry Health Care Inc., said a preliminary official statement.

The bonds (/AAA/A-1+/) will be sold on a negotiated basis with Merrill Lynch & Co. as the lead manager.

The bonds are due Aug. 1, 2029 and will initially bear interest at the unit pricing mode. While in a unit pricing, daily or weekly mode, the bonds will be backed by a letter of credit from U.S. Bank NA.

Proceeds will be used to repay outstanding debt.

In other upcoming deals, the Lancaster County Correctional Facility Joint Public Agency of Nebraska plans to price $65 million in series 2009 building bonds Thursday, said a preliminary official statement.

The bonds (Aa1/AA+/) will be sold on a competitive basis with Ameritas Investment Corp. as the financial adviser.

The bonds are due 2009 to 2028.

Proceeds will be used to construct, equip and furnish correctional facilities operated by the joint public agency.

Secondary weakens

Moving to the secondary municipals market, a trader said the tone was decidedly down Tuesday, partly knocked off by poorly performing Treasuries.

"We're off by several basis points," he added. "Yields are up as high as six or so basis points."

Looking to specific trades, the recently freed-to-trade series 2009V revenue bonds sold by the Royal Oak Hospital Financing Authority of Michigan for the William Beaumont Hospital were seen trading Tuesday. The 8.25% 2039s were seen trading at 7.85%.

Also freed to trade recently was the New York City Transitional Finance Authority's series 2009S-3 building aid revenue bonds, priced Jan. 13. The 5.25% 2030s were seen trading Tuesday at 5.37%.

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