Jacksonville, Fla., prices $54.215 million revenue bonds; pricings delayed because of shaky market

By Cristal Cody and Sheri Kasprzak

New York, Sept. 16 - Even though market volatility didn't stop some issuers from announcing new issue pricings, it may be impacting the ability of some of those deals to get priced right away.

At least two offerings were postponed Tuesday following major shakeups at Lehman Brothers and Merrill Lynch and subsequent freefalls in the stock market.

The Idaho Health Facilities Authority had been scheduled to price $275 million in revenue bonds for St. Luke's Health System, but that sale was put off, a source at the issuer told Prospect News.

The 2008A bonds (/A/) will now be rescheduled for another date, but that date was not available Tuesday.

The bonds have serial maturities from 2009 through 2024 and terms due 2028, 2033, 2038 and 2043.

Merrill Lynch & Co. will manage the negotiated sale.

Proceeds will be used to finance, refinance or reimburse St. Luke's for acquisition, construction, renovation and improvement costs for health-care facilities.

Also postponed Tuesday was a $62.2 million sale of general obligation bonds from the Beaufort County School District in South Carolina.

"The bond sale was postponed due to market volatility," said a sellside source close to the offering. "We are in the process of deciding the next steps."

The bonds had been scheduled to price on a competitive basis Tuesday.

The bonds are due 2010 to 2033, and proceeds will be used for school construction, renovations and for the refunding of existing obligations.

Jacksonville bonds price

Some sales did proceed on Tuesday, led by an offering of special revenue bonds from Jacksonville, Fla. The sale of $54.215 million in bonds attracted three bids with a 4.96% true interest cost on Tuesday, a market source told Prospect News.

The series 2008 bonds (Aa3/AA-/AA-) priced with 3.5% to 5% coupons to yield 2.3% to 5.55% on the serial maturities from 2009 through 2031. A term bond due 2033 priced with a 5.625% coupon to yield 5.65%.

UBS Securities bidding with Morgan Stanley & Co. were the winning bidders in the competitive sale.

Proceeds will be used to finance equipment and capital improvements for parks, the drainage system and city buildings.

Hawaii's $634.7 million G.O. sale

Looking ahead, the State of Hawaii is gearing up to price $634.735 million in series 2008 G.O. and G.O. refunding bonds Sept. 23, said a preliminary official statement.

The bonds (Aa2/AA/AA) will be sold on a negotiated basis with Citigroup Global Markets and Merrill Lynch as the senior managers.

The sale includes $300 million in series 2008DN G.O. bonds, $308.735 million in series 2008DO G.O. refunding bonds and $26 million in series 2008DP G.O. bonds.

The 2008DN bonds are due 2012 to 2028, and the 2008DO bonds are due 2011 to 2018. The 2008DP bonds are due 2011 to 2016.

Proceeds will be used to reimburse the state for expenditures for public improvement expenses for which appropriations were made in acts of the state legislature, as well as the costs of acquiring, constructing, extending or improving various public buildings and facilities, elementary and secondary schools and community college and university facilities. The rest will be used to refund several of the state's outstanding obligations.

New Mexico's TRANs ahead

Another large deal coming up is a $500 million offering of series 2008-2009 tax and revenue anticipation notes from the State of New Mexico, which is also expected for Sept. 23.

The notes (MIG 1/SP-1+/) will be sold on a competitive basis with Fiscal Strategies Group as the financial adviser, according to a notice of sale.

Proceeds will be used to pay for capital expenses incurred before taxes and other revenues for the 2008-2009 fiscal year can be collected.

The notes are due June 30, 2009.

Marquette University revenue bonds

Elsewhere, Marquette University in Wisconsin plans to sell $111.195 million in revenue and refunding bonds on Monday and Sept. 30, a source said Tuesday.

The bonds (A2//) will price through the Wisconsin Health and Educational Facilities Authority.

The $27.625 million series 2008A1 and the $33.01 million series 2008A2 revenue and refunding bonds will be offered on Monday.

The series 2008A1 bonds have serial maturities from 2009 through 2014, and the series 2008A2 bonds have serial maturities from 2015 through 2028 and terms due 2033.

The university also plans to price $31.795 million in series 2008B1 and $18.765 million in series 2008B2 adjustable demand revenue bonds on Sept. 30.

Robert W. Baird & Co. is the manager of the negotiated sale.

Proceeds will be used to refund a portion of the series 1998 revenue bonds and to finance construction of a new law school building and renovations of a residence hall.

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