Miami-Dade sells downsized $172 million G.O.s; San Antonio Electric & Gas Systems sells $158 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Dec. 11 - Pricing action continued to flourish on Thursday, with the long-awaited sale of Miami-Dade County of Florida's $172 million competitive sale of general obligation bonds leading the activity.

With the competitive sale of $1.4 billion in G.O. certificates from the State of Illinois put on the back burner until next week, the big news Thursday came when Miami-Dade sold a portion of its planned $350 million sale. Rachel Baum, director of finance for the county, told Prospect News in an earlier interview that the county had some flexibility to sell the bonds in tranches. It was not clear Thursday if the county intends to sell the remainder of the bonds in 2009.

Barclays Capital was the winning bidder for the deal with a 5.958055% true interest cost.

The bonds are due 2009 to 2028 with coupons from 5% to 6.375%. The yields were not immediately available.

Proceeds will be used for capital improvement projects under the county's Building Better Communities Program.

San Antonio utility bonds

Also priced Thursday was a downsized, $158 million offering of series 2008A revenue refunding bonds (Aa1/AA+/AA) from the San Antonio Electric & Gas Systems (CPS Energy), according to Lonny Ahr, a CPS Energy spokesman.

The deal was cut from $219 million and carries a TIC of 3.73%.

The serial bonds were sold with yields ranging from 2.2% to 4.14% and maturities from 2010 to 2016.

"We held out and we're satisfied with the results," said Ahr. The offering did "a little better than we thought."

The bonds were brought to market by Morgan Stanley & Co. Inc., Merrill Lynch & Co. and Banc of America Securities LLC.

Proceeds will be used to refinance outstanding series 1998A bonds.

MGAG brings $125 million

In other pricing news Thursday, the Municipal Gas Authority of Georgia priced $125 million in series D and E gas revenue bonds Thursday, said Chris Howell, the authority's director of financing.

The offering was upsized from its planned $105 million.

The bonds are due Dec. 16, 2009 and have a 2% coupon, priced at par.

Wachovia Bank was the lead manager for the sale.

Proceeds will be used for Public Gas Partners, Inc.'s development of gas reserves and for the refunding of outstanding Portfolio III Project bonds.

Michigan bond authority sale

On Wednesday, the Michigan Municipal Bond Authority priced $150 million series 2008 state clean water revolving fund revenue bond anticipation notes (MIG1), said Terry Stanton, bond authority spokesman.

The bonds, which are due July 15, 2009, have an initial coupon of 0.88%, priced at par.

JPMorgan and Citigroup were the underwriters.

Proceeds from the sale will be used to fund loans to local government entities for the purpose of financing water pollution control programs and drinking water projects.

Minnesota higher education deal

Looking to upcoming sales, the Minnesota Office of Higher Education announced plans Thursday to price $100 million in series 2008 adjustable-rate supplemental student loan program revenue bonds, according to a preliminary official statement released Thursday.

The bonds are due Dec. 1, 2043 and initially bear interest at the weekly rate.

The sale includes $66.7 million in series 2008A taxable bonds and $33.3 million in series 2008B tax-exempt bonds.

RBC Capital Markets is the lead manager for the negotiated deal.

Proceeds will be used to finance or refinance student loans issued under the office's Supplemental Student Loan Program.

Secondary off again

Moving to the secondary market Thursday, traders said the tone was still off by a few basis points, with the long end taking the brunt of the storm.

"It's just been this way all week," said one trader reached in the afternoon. "Long end seems to be off by a basis point or so more than the short end. It's been a pretty down week with not a lot going on."

In trading news, the Lower Colorado River Authority of Texas's 6.5% 2037s were seen Thursday trading at 6.597%.

Elsewhere, the State of Rhode Island's series 2008 G.O. bonds were seen trading with the 4.125% 2017s trading at 4.033%. The bonds priced at the beginning of December to yield 4.22%.

Also on Thursday, the recently freed-to-trade Adams & Arapahoe Counties Joint School District of Colorado's series 2008 school building bonds were seen trading. The 5.25% 2022s were trading at par.

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