DALLAS — There’s something for everyone in the Texas muni market this week, with issues of all shapes and sizes expected to price.
Triple-A rated Travis County is bringing a three-tranche issue to market Tuesday worth about $84 million to improve road drainage, renovate law enforcement and justice facilities, acquire vehicles and heavy equipment, and upgrade various parks.
The central Texas county plans to offer $35.7 million of unlimited-tax road bonds, $26.7 million of certificates of obligation, and $21 million of permanent improvement bonds through competitive sales.
D. Ladd Pattillo & Associates Inc. is financial adviser to the county and Vinson & Elkins LLP serves as co-bond counsel.
All the debt is secured by annual ad valorem taxes, and the certificates are further secured by surplus revenue generated by the county’s solid-waste disposal system.
A Moody’s Investors Service analyst said last week that “the sheer size and vibrant, diverse nature of the county’s tax base is a primary rating factor.”
“The Aaa rating is also prospective. That is, future prospects for economic growth for the region and future projections of population migration into the county both look strong and favorable,” he added.
Standard & Poor’s and Fitch Ratings also rate the county’s credit AAA.
On Thursday, the Texas Public Finance Authority plans to issue about $14.7 million of lease revenue bonds on behalf of the state’s Parks and Wildlife Department. Coastal Securities is the financial adviser to the issuer.
Moody’s rated the Aa2 deal and Standard & Poor’s rated it AA-minus. Proceeds of the sale will finance the first phase of construction of a 200-acre freshwater fish hatchery in East Texas.
The Royse City Independent School District plans to issue $25 million of school building bonds this week through a negotiated sale led by RBC Capital Markets.
Standard & Poor’s assigned a BBB rating to the sale and revised its outlook on the credit to positive from stable. Analysts said the positive outlook reflects the district’s improved financial position and a recent trend of strong economic development that improved the district’s wealth levels.
“If officials are able to demonstrate continued, structurally sound financial performance while addressing the district’s growth-related capital and operational needs, we might raise the rating by one notch,” Standard & Poor’s credit analyst Hilary Sutton said.
Royse City ISD sits about 32 miles northeast of downtown Dallas. Enrollment rose by 50% since the 1999-2000 school year, and officials project the total student population to reach nearly 7,500 by 2015.
At some point this week, the Texas Affordable Housing Corp. will offer $35 million of single-family mortgage revenue bonds and the North Texas town of Wichita Falls plans to issue $108.6 million of water and sewer system priority-lien refunding revenue bonds.
RBC Capital Markets is lead underwriter for both negotiated sales. The housing bonds are being issued on behalf of the Professional Educators Home Loan Program.
The McLennan County Junior College District will issue about $73.8 million of limited-tax bonds today.
UBS Securities LLC leads the underwriter syndicate for the negotiated sale. RBC is financial adviser to the college and Andrews Kurth serves as bond counsel.
The bonds, which are structured as serials with final maturity in 2032, will be insured by Financial Security Assurance Inc.
The college in northwest Waco has experienced steady enrollment growth the past decade and currently has a total student population of more than 8,500 students, up from about 5,400 in 1997.
The Midlothian Development Authority plans to bring $41 million of tax increment contract revenue refunding bonds to market at some point this week. The negotiated sale will be led by Stone & Youngberg and Southwest Securities is the financial adviser.
A Southwest spokeswoman said the exact timing of the pricing is contingent upon satisfying some changes in the covenants with subordinate-lien bondholders.
The Series 2007A bonds — about $35 million — will be insured by Radian Asset Assurance Inc., while the Series 2007B will not.
The Alvarado Independent School District will offer $25.5 million of school building bonds this week through a negotiated sale led by First Southwest. The district serves more than 3,000 students in six schools about 25 miles south of Fort Worth.
Meanwhile, the Spring Branch Independent School District plans to offer about $163 million of limited-tax refunding bonds at some point this week. UBS is lead manager and First Southwest is the financial adviser to the west Houston district.
The issue was set to price Thursday, “but the market was just off,” and the 4% minimum savings threshold wasn’t achievable, according to a First Southwest analyst. “We’re going to wait until we get a upbeat market and try to get it in within 24 hours notice,” he said.
The district serves 32,000 students in 25 elementary schools, seven middle schools, four high schools, five pre-kindergarten, and five special/charter campuses.
The Ector County Independent School District planned to price $56.4 million of refunding bonds last week, but decided to push it back to this week as well. First Southwest is the lead manager. The West Texas school system operates 28 elementary schools, six junior high schools, three special campuses, and three high schools.
Galveston County Municipal Utility District No. 15 is bringing $5.1 million of combination unlimited tax and revenue bonds to the competitive market Wednesday.
First Southwest is financial adviser to the Gulf Coast utility.
Port Aquarius Municipal Utility District plans to bring $8.9 million of waterworks and sewer system combination unlimited tax and revenue bonds to the competitive market Tuesday.
Majority of proceeds will be used for expansion and rehabilitation of the utility’s wastewater treatment plant.
GMS Group is financial adviser to the Montgomery County utility.
Standard & Poor’s assigned a BBB-minus rating to the sale.
