Issuers look to October to sell bonds; Public Works Board of California to sell $163.3 million

By Cristal Cody and Sheri Kasprzak

New York, Sept. 26 - The week of Sept. 22 ended as issuers continue to shy away from pricing billions in bonds and investors stayed away.

Some issuers are on a day-to-day basis in the hopes of completing their sales within the next couple of weeks, but others now are looking to later in October and November to try again.

"We're all sitting around waiting," a sellsider told Prospect News earlier in the week after a sale had been postponed.

The consensus among both sellside sources and issuers is that now is not the time to price. Billions in sales were delayed during the week of Sept. 15 and only a trickle of new offerings is coming in. Even fewer of those new issues have exact pricing dates set.

Market woes have caused the California Department of Transportation to put the sale of its series 2008A federal highway grant anticipation bonds on hold. The department has also lowered the size to $94.135 million, according to the state treasurer's office.

The department had planned to price $143 million in Garvee bonds on Oct. 1.

Heading up October's pricing action, the Public Works Board of the State of California intends to price $163.3 million lease revenue bonds, according to a sale calendar.

The sale includes the series 2008H bonds for the Department of Developmental Services, the series 2008I bonds for the Trustees of the California State University and the series 2008J bonds for the Department of Mental Health.

Virginia Housing sale expected

Also coming up in October, the Virginia Housing Development Authority is expected to sell $151.739 million in series 2008C commonwealth mortgage bonds pass-through certificates, said a preliminary official statement.

The bonds (Aaa/AAA/), which are due June 25, 2038, will be sold on a negotiated basis with Morgan Keegan as the senior manager.

The exact pricing date has not been set at this time, said a sellside source.

Proceeds will be used to purchase mortgages.

Elsewhere in October offerings, Madison, Wis., plans to price $58 million in general obligation promissory notes through a competitive sale on Oct. 7, according to a sale calendar.

The series 2008A notes have serial maturities from 2009 through 2018.

Springsted is the city's financial adviser.

Mounds View ISD G.O.s

Looking a bit further ahead, the Independent School District No. 621 in Mounds View, Minn., plans to price $53.855 million in G.O. bonds through a competitive sale on Oct. 28, according to a sale calendar.

The $26.25 million series 2008A OPEB bonds have serial maturities from 2011 through 2024.

The $27.605 million series 2008B school building refunding bonds have serial maturities from 2013 through 2022.

Springsted is the financial adviser for the sale.

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