August Ready to Kick Off With Issues From N.Y., N.J., and BATA

As the municipal market closes the books on July, which saw $30.51 billion of long-term volume, issuers in New York, California, and New Jersey will usher in August with three of this week's largest deals as part of an estimated $4.65 billion of new-issue volume - noticeably less than last week's revised $6.56 billion total, according to Thomson Reuters.

An $800 million New York City general obligation offering will jump-start the negotiated activity on Wednesday, and will be the largest deal of the week, followed by a $717.8 million Bay Area Toll Authority revenue sale the same day. There are an estimated $3.69 billion in negotiated deals slated for this week, compared with a revised $5.39 billion last week.

The city's GO sale will be priced by JPMorganafter a three-day retail order period that ends tomorrow. The fiscal 2009 Series A bonds are structured to mature from 2010 to 2017 and from 2021 to 2029, and are expected to carry ratings of Aa3 from Moody's Investors Service, AA from Standard & Poor's, and AA-minus from Fitch Ratings.

New York City is also selling $165 million of taxable GOs on Wednesday in a competitive sale that is expected to mature from 2017 to 2020.

Meanwhile, California's BATA deal will be bepriced by Citi with a structure heavily weighted on the long end with bonds maturing from 2032 to 2048. The Series 2008 F-1 bonds, which are being sold on behalf of the San Francisco Bay Area Toll Bridge project, are expected to have ratings of Aa3 from Moody's, AA from Standard & Poor's, and AA-minus from Fitch.

A $344.8 million sale from the New Jersey Economic Development Authority will be priced by Morgan Stanley on Wednesday on behalf of the NJ Transit's light-rail system. The deal is a conversion of outstanding auction-rate debt to long-term fixed rate.

Back in the Empire State, the State of New York Mortgage Agency will sell $107 million of homeowner mortgage revenue bonds in a deal being priced by Goldman, Sachs& Co. tomorrow, following a one-day retail order period today. The deal, which is rated Aa1 by Moody's, will be structured with three series of bonds - $35 million of Series 155 bonds and $72 million of Series 156 bonds - both of which are not subject to the alternative minimum tax.

There will also be activity in the Southwest, with a hospital deal and a higher education offering - both of which are taking place in Texas and are expected to be priced tomorrow.

The Methodist Hospital of Houston will sell $150 million of Series 2008 B bonds rated AA by Standard & Poor's with JPMorgan as the senior manager, but the structure of the deal was not available at press time on Friday.

The Dallas County Community College District will add to the supply with its $220 million sale of GO improvement and refunding bonds, which are expected to mature from 2009 to 2028. Southwest SecuritiesInc. is slated to price the issue tomorrow and the bonds are expected to carry natural triple-A ratings from all three major rating agencies.

Outside the negotiated market, the competitive market is fairly skimpy this week, with only an estimated $953.8 million in competitive offerings scheduled, versus $1.15 billion last week, according the Thomson Reuters data.

On Wednesday, the Gwinnett County, Ga., Water and Sewerage Authority is slated to sell $190 million of revenue bonds in a deal that is structured to mature from 2013 to 2028 and has a natural triple-A rating from all three major rating agencies.

Los Angeles will issue $101 million of GOs on Wednesday in a deal structured to mature from 2009 to 2028 and rated Aa2 by Moody's and AA by Standard & Poor's and Fitch.

One of the only other sizable competitive deals this week is a $134 million sale of GO bonds from the Albuquerque, N.M., School District No. 12. The deal, which is structured to mature from 2010 to 2023, will carry ratings of Aa2 from Moody's and AA from Standard & Poor's.

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