Issuers in Texas and the Northeast - led by Connecticut - will take center stage in the primary market this week when they deliver a handful of sizable deals as part of an estimated $3.71 billion in total competitive and negotiated volume, according to Thomson Reuters.

By comparison, last week the market saw a revised $4.94 billion in combined competitive and negotiated volume, according to Thomson data.

A $420 million offering of second-lien special tax obligation refunding bonds by Connecticut is expected to be this week's largest deal. Planned for pricing by Goldman, Sachs & Co. on Wednesday following a two-day retail order period that began on Friday and ends today, the 2009 Series 1 bonds are scheduled to mature from 2010 to 2022.

Proceeds from the deal - which is rated A1 by Moody's Investors Service, AA by Standard & Poor's, and AA-minus by Fitch Ratings - will be used for transportation infrastructure purposes.

Elsewhere in the Northeast, the New York City Municipal Water Finance Authority is planning to sell $300 million of water and sewer system second general resolution revenue bonds on Thursday subject to market conditions, following a retail order period tomorrow with Siebert, Brandford Shank & Co. as book-runner. Depfa First Albany Securities LLC, Merrill Lynch & Co., and M.R. Beal & Co. will serve as co-senior managers. The fiscal 2009 Series EE bonds are rated Aa3 by Moody's, AA-plus by Standard & Poor's, and AA by Fitch. The deal's structure was not expected to finalized until today.

The proceeds of the sale will be used to finance the ongoing capital improvement program of the city's water and sewer system.

Last week, there was strong demand for a $650 million New York City Transitional Finance Authority offering of building aid revenue bonds that was priced by Citi on Tuesday with a 2039 final maturity with a 51/4% coupon and 5.55% yield.

At the time of the pricing, the generic triple-A general obligation bond due in 2039 was yielding a 4.79%, according to Municipal Market Data. On Friday, the same bond due in 2039 ended at 4.74% at the close of trading.

The Northeast activity also includes a $175 million revenue offering for schools from the New Jersey Economic Development Authority that is expected to be priced tomorrow by Banc of America Securities LLC after a two-day retail order period that ends today. Structured to mature serially from 2010 to 2024, with term bonds in 2028 and 2034, the bonds are expected to be rated A1 by Moody's, AA-minus by Standard & Poor's, and A-plus by Fitch.

The bonds are state contract debt and will support school building construction. This is New Jersey's second bond sale in which officials are looking to tap into retail demand as demand from mutual funds and other institutional investors has diminished due to volatility in the financial markets, noted state Treasurer David Rousseau in a press release.

In the Texas market, a $215.1 million revenue refunding from the Tarrant County Cultural and Educational Facilities Financing Corp. is one of two sizable deals expected in the region.

The deal, which is being sold on behalf of the Baylor Health Care System, is planned for pricing by Goldman on Thursday. The Series 2009 bonds are rated Aa2 by Moody's and AA-minus by Standard & Poor's and are tentatively structured to mature from 2009 to 2019, with term bonds expected in 2024 and 2029, according to the preliminary official statement.

Elsewhere in the state, San Antonio is expected to issue $175 million of water system revenue and refunding bonds tomorrow in a deal that is being senior-managed by Citi. Rated Aa2 by Moody's following a Dec. 18 upgrade, and AA by Standard & Poor's and Fitch, the bonds are structured to mature from 2009 to 2039.

Proceeds will finance improvements to the city's water system, and refund a portion of outstanding commercial notes.

In the competitive market, meanwhile, only $486.2 million is expected this week versus a revised $1.24 billion last week, according to Thomson data.

The only sizable deal on the calendar is a $132 million revenue anticipation note sale from the Miami-Dade County School District. The offering, which is expected to be priced tomorrow and matures in 2010, is rated MIG-1 by Moody's and backed by ad valorem tax receipts and interest earnings. Proceeds will retire a portion of the district's outstanding principle balance of Series 2008B notes maturing on Jan. 30.

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