Milwaukee sells $210 million RANs; Lucile Salter Packard Children's Hospital raises $93.45 million

By Cristal Cody and Sheri Kasprzak

New York, Aug. 12 - Milwaukee led Tuesday's light pricing action, selling $210 million in school revenue anticipation notes, while the Lucile Salter Packard Children's Hospital at Stanford in California priced variable-rate refunding revenue bonds.

Meanwhile, new issue activity remained at a lull, as some market insiders have predicted. With August upon the market and municipal professionals hitting the beach, new offerings may be dropping off temporarily, some sellside sources have mentioned.

In Tuesday's Milwaukee sale, the city brought $210 million in series 2008M10 school revenue anticipation notes, said Richard Li with the city's finance department.

The notes (MIG1//F1+) were sold on a competitive basis with Morgan Stanley winning $25 million of the bid and Citigroup Global Markets getting $185 million of the sale. The true interest cost from Morgan Stanley came in at 1.591139%, and the TIC from Citigroup came at 1.606138%.

The coupon came at 3%, priced at par.

There were 10 bids for the offering, according to Li.

Proceeds will be used to assist public schools by providing funds until state and property taxes are collected.

Lucile Salter Packard sale

Meanwhile, the Lucile Salter Packard Children's Hospital at Stanford priced $93.45 million variable-rate refunding revenue bonds with a "favorable" 1.35% initial rate on Tuesday, a market source told Prospect News.

The series 2008A and 2008B bonds are due 2033. The series 2008C bonds are due 2023.

The bonds (Aa2/AA/AA) priced initially with a weekly interest rate through the California Health Facilities Financing Authority.

Goldman, Sachs & Co. managed the negotiated sale of the series 2008A bonds, and Morgan Stanley managed the sale of the series 2008B and 2008C bonds.

Proceeds will be used to refund the series 2003A and 2003B revenue bonds and repay a bank loan used in July to retire the $32.4 million outstanding from the series 1993 certificates of participation.

California Housing sells $250 million

Elsewhere in Tuesday's pricing action, the California Housing Finance Agency sold $250 million home mortgage revenue bonds on Tuesday, but pricing terms were not immediately available.

The $189.79 million series 2008L and $60.21 million series 2008M bonds (Aa2/AA-/) priced in a negotiated sale through lead manager Merrill Lynch & Co.

Proceeds will be used to make or purchase mortgage loans or mortgage-backed securities and to redeem the $18.455 million outstanding from the series 2001R revenue bonds.

The Oregon Housing and Community Services Department also intended to sell $92.71 million mortgage revenue bonds on Tuesday, but calls to confirm the sale were not immediately returned.

The sale included $52.53 million series 2008G and $5.53 million series 2008H fixed-rate bonds and $34.65 million series 2008I variable-rate bonds with a weekly interest rate.

The series 2008G bonds have serial maturities from 2013 through 2023 and terms due 2028 and 2030.

The series 2008H bonds have maturities from 2009 through 2012 and the series 2008I term bonds are due 2037.

J.P. Morgan Securities Inc. was the senior manager of the negotiated sale.

Proceeds will be used to purchase $89.929 million of new mortgage loans.

Baltimore County offering

Also on Tuesday, Baltimore County, Md., was expected to price $81.6 million in series 2008 commercial paper bond anticipation notes (P-1//F1+), but calls to the issuer for the pricing terms were not immediately returned.

The sale included $35 million in series 2008 consolidated public improvement commercial paper BANs and $46.6 million in series 2008 metropolitan district commercial paper BANs.

Proceeds will be used for county expenditures pending a bond sale.

Greenville Hospital bonds

In new offerings, the Greenville Hospital System in South Carolina expects to price $271.5 million variable-rate revenue bonds on Monday, a market source said Tuesday.

The $60.615 million series 2008B, $61.22 million series 2008C, $59.605 million series 2008D and $90.095 million series 2008E bonds (Aa3) will price through the Greenville Hospital System Board of Trustees.

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

Proceeds will be used to refund the series 2003A, 2003B, 2005A, 2005B and 2005C bonds.

New Hampshire Housing Finance

Also coming up, the New Hampshire Housing Finance Authority plans to price $51.52 million single-family mortgage acquisition revenue bonds on Wednesday, the issuer told Prospect News.

The $44.02 million series 2008E, $1.095 million series 2008F and $6.91 million series 2008G bonds (Aa2) also were sold through retail orders on Tuesday, said Paul Goneau, chief financial officer.

Proceeds will be used to purchase newly originated mortgage loans and to refund and replace a portion of outstanding bonds.

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