A billion-dollar deal in the Far West region and a bevy of new deals in the Northeast will lead this week's primary market calendar, which includes $6.68 billion of new volume compared with a revised $8.01 billion last week.
A $1.75 billion California general obligation issue planned for pricing by Morgan Stanleyon Thursday will give retail investors first crack at the bonds tomorrow and Wednesday. The new-money and refunding deal, which will mature from 2009 to 2038, will be uninsured and carries ratings of A1 from Moody's Investors Service and A-plus from Standard & Poor's and Fitch Ratings.
Although its GO sale is not until next week, Connecticut will kick off a rare, week-long retail order period for its $2 billion sale of taxable GOs ahead of a pricing on April 14. The proceeds will finance the state's teacher's retirement fund.
This week, however, the Connecticut Health and Educational Facilities Authority will kick off a flurry of activity in the Northeast.
CHEFA will be the conduit issuer for two separate university conversion deals - both of which are being priced by JPMorgan.
The first is a $250 million sale to convert $125 million of Series 1997 T-1 and $125 million of Series 2003 X-3 auction-rate securities to fixed-rate debt on behalf of Yale University. The deal, which has natural triple-A ratings from Moody's and Standard & Poor's, will be priced tomorrow with a structure that includes two term bonds maturing in 2029 and 2037.
The authority will also issue $116 million on behalf of Quinnipiac University, which is also converting auction-rate debt to fixed rate in a deal that will be priced on Wednesday and insured by MBIA Insurance Corp.
Besides the Connecticut higher education deals, other activity in the Northeast includes a $312.7 million New Jersey certificates of participation lease revenue offering slated for pricing on Wednesday by Merrill, Lynch& Co.
The New Jersey COPs are rated A1 by Moody's, AA-minus by Standard & Poor's, and A-plus by Fitch, and are structured to mature serially from 2010 to 2018 with a term bond in 2023.
The District of Columbia Water and Sewer Authority, meanwhile, will sell $293.9 million of revenue bonds on Wednesday.
The water and sewer bonds are structured to mature from 2009 to 2023, from 2025 to 2028, and in 2034, and are rated A3 by Moody's and A-minus by Standard & Poor's and Fitch.
Additionally, the Dormitory Authority of the State of New York will sell $290 million of revenue bonds on behalf of Columbia University. The deal will be priced on Wednesday and senior managed by Morgan Stanley. There are two term maturities, 2013 and 2038.
The Northeast slate comes on the heels of last week's largest deal, which was a $1.2 billion offering of New York City variable-rate demand bonds.
Elsewhere this week, other sizable issuers include Denver, which will sell $455 million of airport system revenue bonds in a conversion deal being priced on Thursday by senior manager Goldman, Sachs& Co.
Rated A1 by Moody's and A-plus by Standard & Poor's and Fitch, the deal will convert outstanding auction-rate debt to fixed rate. As of press time, the new deal was tentatively structured to include $135 million of serial bonds maturing from 2008 to 2017, and a $320 million put bond in 2032,.
The Colorado Health Facilities Authority, meanwhile, will also be in the market tomorrow with a $215 million sale of revenue bonds when it converts outstanding Series 2005 A, B, and C auction-rate bonds to fixed rate on behalf of Poudre Valley Health Care in Forth Collins, Colo., and its affiliate Medical Center of the Rockies in Loveland, Colo. The bonds will be insured by Financial Security Assurance and will be structured to mature in 2031, 2036, and 2040.
Elsewhere in the region, the Fort Bend Independent School District in Tex. is planning to sell $223.6 million of unlimited tax school building and refunding bonds that are guaranteed by the natural triple-A rated Texas Permanent School Fund.
Coastal SecuritiesInc. is slated to price the bonds on Thursday with a structure maturing from 2009 to 2034.
In the Midwest, Michigan will sell $219 million of federally taxable GOs and refunding bonds for the state's environmental program tomorrow in a negotiated deal being senior-managed by Bear, Stearns & Co. The deal will mature from 2011 to 2019 and will be rated Aa2 by Moody's, and AA-minus by Standard & Poor's and Fitch.
