Atlanta moves $120 million sale onto day-to-day status; Fairfax, Va., authority plans $105.51 million

By Cristal Cody and Sheri Kasprzak

New York, Sept. 30 - The muni market is still rife with uncertainty following Congress' rejection of a planned $700 billion bailout proposal. Some issuers are playing it safe until a solid solution to the recent market woes is achieved.

At least one sellsider said Tuesday that he is optimistic that a solution will be reached, but issuers are wary of moving forward in the interim.

"It's a scary situation to be in," said the sellside source reached Tuesday afternoon.

"I don't think anyone wants to make a move. I'm sure eventually it will all get worked out. I'm pretty optimistic, but we're playing a waiting game now to see what Congress is going to do next."

Atlanta postponed the planned sale on Tuesday of $120 million tax allocation bonds as investors reacted strongly to Congress' rejection of the federal bailout plan, said Dana Boone, chief of the city's office of debt and investment.

The $42.33 million series 2008A, $70.265 million series 2008B and $7.405 million series 2008C tax allocation bonds instead will price when the market is less volatile, Boone said.

"We're just kind of going day-by-day here," she said. "The market has responded to the fact that the act wasn't passed by Congress, so we are just trying to wait and make sure we are strategic with our entry into the market."

Wachovia Bank, NA, is the senior manager of the negotiated sale.

Proceeds will be used to finance or refinance redevelopment costs to acquire and develop an abandoned BeltLine rail corridor, create affordable workforce housing and provide economic development incentives in the BeltLine tax allocation district.

Fairfax to price bonds

Some issuers are tentatively moving forward with sales this week.

The Fairfax County Redevelopment and Housing Authority in Virginia is scheduled to price $105.51 million in bond anticipation notes through a competitive sale on Wednesday, according to a sale notice.

The series 2008B notes (MIG 1/SP-1+/) are due Nov. 3, 2009.

Public Financial Management is the county's financial adviser.

Proceeds will be used to refund the $105.485 million outstanding from the series 2007B bond anticipation notes, which mature Oct. 9, 2008.

Broward County schools sale

Also coming up this month, the School District of Broward County in Florida is expected to sell $125 million in series 2008 tax anticipation notes, said a preliminary official statement released Tuesday. The notes are scheduled to price on Oct. 8.

The notes (MIG 1) will be sold on a competitive basis with Public Financial Management and Fidelity Financial Services as the financial advisers.

The notes are due Sept. 30, 2009.

Proceeds will be used for capital expenses incurred before the receipt of certain tax revenues.

Maine Municipal Bond Bank to price

Next week, the Maine Municipal Bond Bank plans to test the waters with a retail order period for $112.125 million revenue bonds, with plans to price on Oct. 7, the issuer said Tuesday.

The series 2008C bonds will be sold through retail orders beginning Friday or Monday, depending on the market, said executive director Robert Lenna.

The bonds have serial maturities from 2009 through 2029 with terms due 2038.

Wachovia Bank, is the senior manager of the negotiated sale.

Proceeds will be used to purchase $99.39 million of municipal bonds from 18 cities, towns, school districts and other local government units in Maine.

Marquette University sells revenue bonds

In Tuesday's light pricing activity, Marquette University of Wisconsin sold $50.56 million adjustable demand revenue bonds, but the initial weekly rates were not immediately available.

The $31.795 million in series 2008B1 and $18.765 million in series 2008B2 bonds (A2) priced through the Wisconsin Health and Educational Facilities Authority.

Robert W. Baird & Co. was the manager of the negotiated sale.

Proceeds will be used to refund a portion of the series 1998 revenue bonds and to finance construction of a new law school building and renovations of a residence hall.

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