Citizens Property to price $1.5 billion short-term notes June 17, delays $1.5 billion bond sale

By Cristal Cody

Springdale, Ark., June 10 - Florida-based Citizens Property Insurance Corp. expects to price $1.5 billion of short-term senior secured bonds on June 17, the issuer said Tuesday.

The series 2008A-2 high-risk account notes (MIG1/SP-1+/) are due June 1, 2009.

Merrill Lynch & Co. is the senior manager of the negotiated sale. Co-managers are Citigroup Global Markets, Goldman, Sachs & Co. and Morgan Stanley & Co.

Proceeds will be invested in tax-exempt bonds to provide liquidity for the company's high-risk account, which is used to pay policy claims and liabilities from storms.

Citizens Property also has put on hold the sale of the $1.5 billion series 2008A-1 bonds, Sharon Binnun, chief financial officer, said in an interview.

The short-term notes instead will attract a new investor pool, including money market funds, she said.

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