SAN FRANCISCO - Boosted by several sizable deals out of California, issuers in the Far West sold almost $90.8 billion of municipal bonds in 2007, up more than 23% from 2006, according to Thomson Financialdata.
The region was not immune from the pressures that dragged down issuance nationwide toward the end of the year - more than 63% of the year's volume was recorded during the first half.
Citi once again topped the Far West underwriting chart, credited with almost $14.3 billion in volume, ahead of Merrill Lynch & Co. with $12.6 billion.
Public Resources Advisory Group was the region's top financial adviser by volume, and Orrick, Herrington & Sutcliffe LLP was the top bond counsel.
In a reflection of California's size, the firms atop the state's rankings were the same as those across the regional rankings. The Golden State accounted for more than 73% of the Far West's volume last year.
In all, California issuers sold more than $66.7 billion of municipal bonds in more than 1,000 separate issues. The state's volume numbers were boosted by eight separate issues for $1 billion or more.
The state of California was by far the region's largest issuer, responsible for almost $12.2 billion in volume.
"In terms of bond issuance projections, at least for the next couple of years or so, the trend is going to continue rising," said Tom Dresslar, spokesman for state Treasurer Bill Lockyer.
The State Treasurer's Office projects the issuance of about $16 billion of general obligation and lease-backed debt in fiscal 2010.
In 2006, California voters authorized more than $43 billion of GOs in five different bond measures - and as of Jan. 1, the state had issued less than $500 million of that, according to the treasurer's office.
California's debt issuance figure for 2007 did not include the region's largest single issue, in which the standalone Golden State Tobacco Securitization Corp. issued more than $4.4 billion in a restructuring of previous tobacco settlement bonds issued for the state government.
The largest issue elsewhere in the region came in Washington, where the state sold almost $970 million of GOs in a competitive deal claimed by JPMorgan and Citi.
In all, Washington issuers sold more than $9.5 billion in bonds, up 1.2% over 2006.
Merrill Lynch was the state's top underwriter, credited with almost $1.8 billion.
Seattle-Northwest Securities Corp. ranked as top financial adviser; and Foster Pepper PLLC topped the Washington bond counsel chart.
Issuers in Oregon sold more than $4.3 billion of bonds, up 47% from 2006 and outstripping Nevada, which saw volume decline more than 26%, to $4.2 billion.
More than 70% of Oregon's volume came in the first half, a statistic that reflects a cycle peculiar to Oregon, said Pat Clancy of financial advisers Western Financial Group.
Under the so-called double majority law, most local bond measures must be approved in an election in which a majority of registered voters turn out - a bar that can be hard to clear. The only exception is even-year Novembers, and local governments and school districts tend to put a lot of bond measures before voters then.
In November 2006, voters approved about $1.8 billion of local bond measures. Many bond measures approved in November tend to make their way to the market in the first half of the next year, Clancy said.
The trend appears set to continue this November.
"We're certainly seeing a ton of transactions, really big authorizations, working their way in the Portland area to the November ballot this year," he said.
Seattle-Northwest was top ranked underwriter in Oregon by volume, with Western Financial Grouptopping the financial adviser chart and K&L Preston Gates Ellis LLP as busiest bond counsel.
Merrill Lynch was Nevada's top underwriter by volume.
NSB Public Finance topped the financial adviser chart, and Swendseid & Stern, the local arm of Sherman & Howard LLC, dominated the bond counsel table.
Municipal bond volume in Alaska dropped more than 31% to less than $1.6 billion.
Wachovia Securities was the top underwriter by volume, First Southwest Co. the top financial adviser, and Birch, Horton, Bittner and Cherot led among bond counsel.
Hawaii volume dropped more than 15%, to less than $1.4 billion over only eight issues.
UBS Securities LLC claimed four of them to claim the position of the Aloha State's top underwriter, while Orrick led among bond counsel.
Idahoissuance volume increased by 23% in 2007, to pass $1.2 billion. Lehman Brothers took the lion's share of the underwriting market, credited with almost two-thirds of the state's volume. Orrick was top bond counsel.
In Wyoming, Campbell County ranked as top issuer by virtue of a single issue - $446 million of private-activity bonds issued for a firm that plans to build a plant in the county to recycle and reuse waste coal.
The usual top-ranked issuer, the Wyoming Community Development Authority, had more different issues than any other - 12 of the 25 recorded last year in the state - while issuing $290 million of debt.
Kutak Rock LLP was bond counsel on most Wyoming bond issues.
Citi claimed the top senior managers' position by volume though it only underwrote one deal - the Campbell County Elk deal.
Montana issuance dropped more than 35% to $838 million, the lowest in the region. UBS was the state's top senior manager in 2007. Dorsey & Whitney LLP led among bond counsel. q
