Municipal sales continue, though August may slow; N.Y. Local Government to sell $208 million bonds

By Cristal Cody and Sheri Kasprzak

New York, Aug. 8 - Even though new issue municipals offerings continued to pop up on Friday, one sellsider said his desk is already seeing some slowing.

"It's not like there's a problem or anything," he said.

"But people go on vacation and in general, around this time of year, things do trail off a little. I think so far this year, [the number of] sales have been pretty good. It will be a good year at the end, but I do expect a drop near the end of August."

Another sellsider, however, has other predictions that the pricing action will continue unabated into August.

Activity certainly continued on Friday, as the New York Local Government Assistance Corp. announced plans to sell $208.13 million in senior-lien refunding bonds in a competitive sale Wednesday.

The series 2008C bonds (//AA-) have serial maturities from 2009 through 2018, said a preliminary official statement.

Public Resources Advisory Group is the financial adviser on the sale.

Proceeds will be used to refund the series 1998A senior bonds.

Prosper I.S.D. sale ahead

Also coming up, the Prosper Independent School District in Texas plans to price $104,126,641 building and refunding bonds Thursday, a source said Friday.

"If everything is OK in the market, then it will be next Thursday with board approval coming on the 18th," the source said.

The series 2008 bonds (/A-/) will be sold as current interest and premium capital appreciation bonds.

The sale includes $90.925 million current interest bonds with serial maturities from 2016 through 2027 and 2032 through 2043.

The $13,201,641 premium capital appreciation bonds have serial maturities from 2013 through 2031.

Southwest Securities is the senior manager of the negotiated sale.

Proceeds will be used to construct, renovate and equip school facilities and to refund the district's series 1998 and series 2002 building and refunding bonds.

Aldine I.S.D. offering

Further out, the Aldine Independent School District in Texas plans to price $100 million unlimited tax building bonds the week of Aug. 18, a source said Friday.

The series 2008 bonds have serial maturities from 2009 through 2033.

RBC Capital Markets is the senior manager of the negotiated sale.

Proceeds will be used to acquire sites and construct and equip school buildings and a transportation facility.

Novant Health, N.C., on tap

Coming up later in the month, Novant Health intends to price $195.96 million variable-rate revenue bonds on Aug. 19, a source with the issuer said Friday.

The bonds (Aa3) will price through the North Carolina Medical Care Commission.

The sale includes $70 million series 2008A, $75.09 million series 2008B and $50.87 million series 2008C bonds.

J.P. Morgan Securities Inc. will manage the negotiated sale of the series 2008A and 2008B bonds, and Branch Banking and Trust will manage the sale of the series 2008C bonds.

Proceeds will be used to refund the hospital's series 1996, 1998A and 1998B bonds.

Thomas Jefferson law school bonds

Also a little further ahead, the Thomas Jefferson School of Law in California expects to price $129.93 million bonds Aug. 21, a source said Friday.

The $95.685 million series 2008A term bonds are due 2038, and the $34.245 million series 2008B bonds are due 2023.

The bonds will price through the California Statewide Communities Development Authority in a negotiated sale managed by Merrill Lynch & Co.

Proceeds will be used to acquire, construct and equip a multi-story building with underground parking in San Diego for a new law school campus and to refund a portion of the outstanding $30.8 million from the series 2007 taxable notes.

City University to sell $395 million

In other upcoming sales, the Dormitory Authority of the State of New York also plans to sell $395 million consolidated fifth general resolution revenue bonds (//A+) for the City University System, according to a preliminary official statement.

Citigroup Global Markets is the senior manager of the negotiated sale of the $114 million series 2008A and $281 million series 2008B bonds.

Proceeds will be used to refund outstanding bonds, including the series 2003-3A, 2003-3B and 2003-3C auction-rate bonds.

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