Billions in sales expected week of June 9; Dormitory Authority of New York to sell $1.5 billion

By Cristal Cody and Sheri Kasprzak

New York, June 6 - Market conditions show signs of improvement as billions of dollars in new offerings emerged on Friday. Indeed, billion in bonds are expected to price in the week of June 9.

"We are seeing some serious improvements in the feeling of the market," one sellsider said when asked about broad trends in pricing activity. "More issuers are feeling more confident with the way things are going."

Additionally, some of the backlog from the ratings agencies may also be a factor in the flood of new offerings.

"I do think it was an issue for a time, but I think things are getting back to normal," the sellsider said.

Heading up the week's crowded marketplace is a $1.5 billion offering of revenue bonds from the Dormitory Authority of the State of New York.

DASNY also plans to price $142.445 million revenue bonds for the School District Revenue Bond Financing Program next week.

The authority will sell the $112.515 million series 2008A and $29.93 million series 2008B bonds for schools, including in the cities of Albany, Norwich, Rome and Watertown, according to a preliminary official statement.

The bonds are insured by Financial Security Assurance.

Depfa First Albany Securities LLC is the senior manager of the negotiated sale.

Proceeds will be used to finance the costs of new school facilities and equipment and to refinance bond anticipation notes.

Elsewhere in New York state, New York University plans to price $690 million variable-rate bonds, Expanding our Children's Education and Learning intends to price $450 million personal income tax revenue refunding bonds and Fordham University expects to price $125 million bonds. The University of Rochester also intends to reoffer $142 million variable-rate bonds.

Chicago's $498 million sale

The city of Chicago is expected to price $498.34 million in series 2008 general obligation refunding bonds this week, said a calendar of upcoming deals.

The bonds (Aa3/AA-/) will be sold on a negotiated basis with Depfa First Albany Securities and Jackson Securities as the senior managers.

The sale includes $377.26 million in series 2008A bonds and $121.08 million in series 2008B bonds.

Proceeds will be used to refund the city's outstanding bonds and to fund capitalized general interest through July 1, 2009.

Crowded market

In other upcoming sales, Nassau County in New York, intends to price $110 million G.O. revenue anticipation notes in a competitive sale on Wednesday, according to a preliminary official statement released Friday.

The $60 million series 2008A bonds are due April 15, 2009. The $50 million series 2008B notes are due May 15, 2009.

Public Financial Management is the county's financial adviser.

Proceeds from the notes (MIG 1/SP-1+/F-1+) will be used to meet a probable cash flow deficit.

Oregon VA bonds

The Oregon Department of Veterans Affairs plans to price a portion of its $50 million G.O. bonds on Wednesday and the remaining portion on June 23, the issuer told Prospect News.

About $11 million of the series 90A bonds will price on Wednesday with a fixed interest rate as a way to hedge any risk, said Larry Groth, assistant director for the state's debt division.

The majority of the bonds will price with a variable rate on June 23, he said.

"It's the most economical way to do that," he said. "Often times, the variable-rate liabilities are less costly than fixed-rate liabilities, but we want to hedge that in case our liabilities go up when we're remarketing weekly out there."

JPMorgan Securities will manage the negotiated sales.

Proceeds will be used for veterans' home loans.

Nassau County sale ahead

Nassau County, New York, plans to price $180 million G.O. refunding bonds (A2//) on June 18, according to a release from Moody's Investors Service. The $140 million series 2008C and $40 million series 2008D bonds will finance capital projects, judgments and settlements and refund $41 million of outstanding county debt.

Metro Washington Airports sale

The Metropolitan Washington Airports Authority plans to price $250 million revenue bonds, according to a preliminary official statement released Friday.

The series 2008A bonds have serial maturities from 2012 through 2029.

Morgan Stanley is the senior manager of the negotiated sale.

Proceeds will be used to refinance the outstanding series one and series two commercial paper notes.

Ventura 1.6% yield

Looking to pricing details released Friday, Ventura County in California priced $155 million tax and revenue anticipation notes to yield 1.6%, said Paul Derse, the county's chief financial officer.

The series 2008/2009 notes (MIG 1/SP-1+/) priced with a 3.5% coupon, Derse told Prospect News.

"We're comfortable with that interest rate," he said. "We'll see where we end up relative to other counties and issuers."

The notes are due July 1, 2009.

Merrill Lynch & Co. managed the negotiated sale.

Proceeds will be used to fund the county's mid-year cash flow needs.

Virginia authority sells bonds

The Virginia Resources Authority priced $71.34 million infrastructure revenue bonds for the Virginia Pooled Financing Program with 4.24% to 4.265% true interest costs, the issuer said Friday.

The $48.89 million series 2008A senior bonds (Aaa/AAA/) priced with a 4.24% TIC, said Sheryl Bailey, executive director.

The bonds priced with 3% to 5% coupons to yield 1.75% to 4.66%.

The $22.45 million series 2008A subordinate bonds (Aa2/AA/) priced with a 4.265% TIC, she said.

The bonds priced with 2.5% to 4.625% coupons to yield 1.9% to 4.71%.

Nearly 30% of the senior bonds and 68.5% of the subordinate bonds also were sold in retail orders, Bailey said.

"We had oversubscription on a number of maturities," she said.

Both series have serial maturities from Nov. 1, 2008 through Nov. 1, 2038.

Bailey credits the strong interest to the authority's financial track record and natural credit ratings.

"This particular program has significant loan growth and we have an increase in the diversity of our pool," she said.

Morgan Keegan & Co. was the senior manager of the negotiated sale.

Proceeds will fund loans to eight municipal participants for a variety of projects and to refund a portion of the authority's series 1997 and 1998 bonds.

The authority also expects to price about $170 million clean water state revolving fund revenue bonds in July.

South Carolina bond sale

The South Carolina Student Loan Corp. intends to price $600 million student loan-backed notes, according to a preliminary official statement.

The series 20081 notes (/AAA/) will be offered in four tranches - series A1, A2, A3 and A4.

RBC Capital Markets and Goldman, Sachs & Co. are senior managers of the negotiated sale.

Proceeds will be used to refund and defease outstanding bonds, refinance student loans, create student loans and fund deposits.

Additional information was not available.

Johns Hopkins Health System plans to price $146.67 million revenue bonds through the Maryland Health and Higher Educational Facilities Authority, according to a preliminary official statement.

The series 2008B bonds (A1/A+/AA-) will price with a term interest rate.

The bonds have terms due in 2042, 2046 and 2048.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

Proceeds will be used to finance two 18-story medical towers to house a new cardiovascular and critical care adult hospital and a children's hospital.

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