Fresno County's $95 million sale of TRANs leads active pricing day; Kentucky postpones bond sale

By Cristal Cody and Sheri Kasprzak

New York, June 10 - Deal volume continued to thrive on Tuesday as issuers priced several offerings. Even so, at least two issuers postponed their bond sales.

Heading up Tuesday's pricing news was the County of Fresno in California, which priced $95 million in series 2008-09 tax and revenue anticipation notes Tuesday, said a sellsider familiar with the deal.

The notes (/SP-1/), due June 30, 2009 and have a 3% coupon. The yield was not immediately available because the pricing terms were still being finalized on Tuesday afternoon.

Citigroup Global Markets won the competitive bid with a 1.63842% true interest cost.

Proceeds will be deposited to the county's general fund and will be used for expenses paid under the general fund.

Delaware Housing bonds price

Also pricing Tuesday was $72.077 million in series 2008A senior single-family mortgage revenue bonds from the Delaware Housing Authority, said a source familiar with the sale.

The bonds (Aa2/P-1/A/A-1/) are due from 2010 to 2018 with term bonds due 2023, 2028, 2039 and 2039 with 2.985% to 4.43% yields, the source said. The bonds are priced at par.

The bonds were sold on a negotiated basis with George K. Baum as the senior manager.

The sale includes $71.277 million for an acquisition fund and $800,000 for a floating fund.

Proceeds will be used to purchase mortgage securities in order to finance single-family residential housing and to refund outstanding bonds.

Massachusetts Housing bonds

In other news, the Massachusetts Housing Finance Authority had been expected to price $75 million in series 134 and series 135 single-family housing revenue bonds (Aa2/AA/) on Tuesday.

Calls to the issuer were not immediately returned.

The bonds were sold on a negotiated basis with Lehman Brothers as the lead manager.

The series 134 bonds are due 2009 to 2018 with term bonds due 2023, 2028 and 2038. The series 135 bonds are due 2010 to 2017.

Proceeds will be used for the purchase of single-family housing loans.

Elsewhere, the Sparks Marina of Nevada was expected to sell $103 million in sales tax anticipated revenue bonds (Baa2//). The terms of the sale were not immediately available.

The bonds were sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The series 2008A bonds are due 2023 and 2028, and the series 2008B bonds are due 2020 to 2027. The sale includes $77 million in series 2008A bonds and $26 million in series 2008B bonds.

Proceeds will be used to construct the Legends entertainment and retail center at the marina.

Kentucky bonds delayed

In other news Tuesday, the Kentucky Higher Education Student Loan Corp. tentatively plans to price $300 million variable-rate demand revenue and refunding bonds on June 17 after delaying the sale since January, the issuer said Tuesday.

The series 2008A-1 tax exempt and 2008A-2 taxable bonds will be sold to refinance $217 million in auction-rate bonds and to convert them to a variable rate, said Jim Ackinson, executive vice president.

"We haven't been in this mode for many years. It's like starting all over again as far as compiling the terms of the bond transactions and it's during a time when everyone is afraid of student loans," he said.

Bank of America will manage the negotiated sale.

Michigan Tobacco bonds rescheduled

The Michigan Tobacco Settlement Finance Authority also delayed pricing $187.214 million tobacco settlement asset-backed bonds on Tuesday because of a similar sale in South Carolina, a source with the state told Prospect News.

The $123.135 million series 2008A fixed-rate current interest turbo term bonds and $64.079 million series 2008B capital appreciation turbo term bonds are now expected to price over the next two weeks.

South Carolina plans to price tobacco asset-backed bonds on Thursday, the source said.

"The underwriters believe it's best to allow that to clear the market first and the delayed timing will enhance Michigan's demand for the issue and achieve our net proceeds goal," the source said.

Michigan's series 2008A bonds are due June 1, 2038, and the series 2008B bonds are due June 1, 2058.

Citigroup Global Markets is the senior manager of the negotiated sale.

Proceeds will be used to pay $60 million for a deposit to the state's general fund and to refund the authority's series 2006B and 2006C indexed floating-rate turbo term bonds.

New York retail

The New York Transitional Finance Authority wrapped up a three-day retail order period and plans to price the remainder of the $700 million revenue issue on Wednesday, a source confirmed Tuesday.

The authority received $218 million in retail orders on the series 2008S-1 fixed-rate building aid bonds by Tuesday.

The remaining $482 million will price in a negotiated sale managed by Goldman, Sachs & Co.

The bonds (//A+) have serial maturities from 2010 through 2038.

Proceeds will be used for projects approved by the state.

Citizens Property's $1.5 billion

Florida-based Citizens Property Insurance Corp. expects to price $1.5 billion short-term senior secured bonds on June 17 and has put off a $1.5 billion bond sale, the issuer said Tuesday.

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

"Being no longer than 12 months, this makes these notes eligible to be purchased by money market funds, so it opens us up to a whole new element of potential investors," Sharon Binnun, chief financial officer, said in an interview.

Merrill Lynch & Co. is the senior manager of the negotiated sale.

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, she said. The series 2008A-1 bonds (A2/A+/) have maturities from March 1, 2011 through March 1, 2013.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

"Given what's happening in the market, and the potential cost and negative arbitrage that Citizens would face, this is an alternative and could be in addition to pricing those three- to five-year maturity bonds," Binnun said of the bonds.

"We anticipate the cost would be significantly less than those three- to five-year maturities."

In another large-scale offering, the state of California plans to price its previously announced $1.5 billion general obligation bonds on June 24, a source involved with the sale confirmed Tuesday.

The preliminary official statement should be released by next week, the source said.

Puerto Rico's $800 million bonds

The Puerto Rico Electric Power Authority plans to price $800 million revenue and revenue refunding bonds (A3//), according to a preliminary official statement.

The $700 million series WW revenue bonds and $100 million series XX revenue refunding bonds will price with a fixed interest rate.

Additional pricing information was not available, but the bonds are expected to be delivered on June 26.

Moody's Investors Service reports the bonds will price on June 17.

JPMorgan is the senior manager of the negotiated sale.

Proceeds will be used for deposits to the 1974 construction fund and to an escrow fund for refunded bonds.

New York State bonds

The New York State Development Corp. plans to price $441.48 million service contract revenue refunding bonds the week of June 16, a source said Tuesday.

The series 2008B bonds (/AA-/A+) have serial maturities from 2009 through 2028 and a term bond in 2030.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

Proceeds will be used to refund the outstanding series 2002B bonds, except for the series 2002B1 bonds.

Comal ISD plans sale

Comal Independent School District in Texas intends to price $150 million building bonds on June 23, a source familiar with the sale said Tuesday.

The series 2008A bonds have serial maturities from 2011 through 2038, according to the preliminary official statement.

First Southwest Co. is the senior manager of the negotiated sale.

Proceeds will be used for construction, renovation and equipment and for the acquisition of sites for school buildings.

King County district to price

In other upcoming sales, the King County School District No. 411 in Washington state plans to price $60 million in series 2008 G.O. bonds, said a preliminary official statement released by the issuer.

The bonds (Aa1//) will be sold on a negotiated basis with Seattle-Northwest Securities as the senior manager.

Of the bonds, $20 million are due June 1, 2009 to June 1, 2012 and $40 million are due Dec. 1, 2020 to Dec. 1, 2025.

Proceeds will be used for capital improvements and construction costs.

Lake Hospital bonds set

Also coming up, the Lake Hospital System in Ohio plans to price $74.205 million in series 2008C hospital facilities refunding revenue bonds, said a preliminary official statement.

The bonds (Baa1//A-) will be sold on a negotiated basis with Lehman Brothers as the senior manager and will be sold through the County of Lake, Ohio

The bonds will be due in a serial structure with term bonds. The exact maturities were not immediately available.

Proceeds from the sale will be used to refund the hospital system's outstanding series 2004 and 2007 bonds.

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