Fort Lauderdale-Hollywood Airport bonds price; North Texas Tollway to sell $1 billion in bonds

By Cristal Cody and Sheri Kasprzak

New York, July 2 - Wednesday marked another slow day for pricings, but light action was led by the Fort Lauderdale-Hollywood International Airport and Broward County, Florida.

The airport priced $104 million airport system revenue refunding bonds with a 1.7% initial rate on Tuesday, said Mike Geoghegan, Broward County's chief financial officer.

"It's about 25 basis points above Sifma today, and we felt that was pretty good," he said. "We have to remarket these things every seven days so we want to make sure we have some good buyers."

Tuesday's buyers included BlackRock and reserve funds, he said.

The series 2008N weekly variable-rate demand bonds (Aa3/A+/AAA) have serial maturities from 2009 through 2029.

JPMorgan managed the negotiated sale.

Proceeds will be used to refund $102 million in the series 2004M auction-rate securities that were insured by Ambac Financial Group.

Fort Smith, Ark., prices $117.42 million

In other pricing news, Fort Smith, Ark., priced $117.42 million water and sewer refunding and construction revenue bonds with a 5.007% true interest cost, a sellside source said Wednesday.

The series 2008 bonds (/AAA/) priced with 4% to 5.25% coupons to yield 2.5% to 5.08%.

The bond sale was approved by the city on Tuesday.

The bonds, insured by Financial Security Assurance, have serial maturities from 2009 through 2023 and terms in 2028 and 2032.

Stephens Inc. was the senior manager of the negotiated sale.

Proceeds will be used to refund the city's series 2002A bonds and to fund system improvements to the Mountainburg water treatment plant, neighborhood water lines and the Howard Hill elevated water storage tank.

North Texas Tollway sale

Moving to a rather large slate of upcoming sales for after the Fourth of July holiday, the North Texas Tollway Authority System intends to price $1 billion second-tier revenue refunding bonds, according to a preliminary official statement.

The previously announced series 2008F bonds (A3/BBB+/) have serial maturities from 2030 through 2038.

The bonds are part of an overall authorized $5 billion bond sale, including $3 billion that priced in April.

Lehman Brothers is the senior manager of the negotiated sale.

Proceeds will be used to refund a portion of the outstanding series 2007 bond anticipation notes.

The authority plans to refund $697.29 million of the notes and to refund the remaining $767.065 million with an additional $947.905 million refunding sale by Nov. 19, according to the statement.

Louisiana sets pricing date

In other upcoming sales, the state of Louisiana expects to price $200 million in series 2008A general obligation variable-rate demand refunding bonds on July 15, said a source at the issuer Wednesday.

"The pricing date is tentative at this stage," the source said.

The bonds (A1//) will be sold on a competitive basis.

Proceeds from the sale will be used to refund the state's outstanding series 2006A G.O. tax credit bonds.

Also on Wednesday, Moody's Investors Service upgraded the state's G.O. bond rating to A1 from A2 based on the state's financial strength and recovery since Hurricane Katrina, said a statement from Moody's.

MoMA refunding revenue bonds

Elsewhere, the Trust for Cultural Resources of the City of New York plans to price $196.63 million refunding revenue bonds for the Museum of Modern Art, according to a preliminary official statement.

The series 2008-1A bonds have serial maturities in 2010, 2025 through 2028 and a term due 2031.

Goldman, Sachs & Co. will manage the negotiated sale.

Proceeds will be used to refund $33.125 million series 2000-1A, $30.75 million series 2000-1B, $50 million series 2001-1A, $50 million series 2001-1B and $35 million series 2001-1C auction-rate bonds.

Additional information was not available.

Northern California Power

The Northern California Power Agency expects to price $140.535 million hydroelectric No. 1 revenue bonds on July 9, the issuer said Wednesday.

The sale includes $131.895 million series 2008C bonds and $8.64 million series 2008D refunding bonds that are insured by Assured Guaranty.

The bonds replace a previously announced sale of $90 million revenue bonds, chief financial officer Donna Stevener said.

The sale was revised to add an additional series that will be refunded, she said.

The fixed-rate bonds (A2//) will refund the series 2002A, 2002B, 2003A and 2003B variable-rate bonds on July 24, the closing date, she said.

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

U of Alabama upcoming deal

In its second offering in the past week, the University of Alabama intends to price $109.93 million in series 2008B revenue bonds for the Birmingham Hospital on July 9, said a preliminary official statement.

The bonds (Aaa/VMIG1/AAA/A-1/) will be sold on a negotiated basis with Morgan Keegan & Co. as the senior manager. The co-managers are Merrill Lynch and Prospective Securities.

The variable-rate bonds are due Sept. 1, 2031 and bear interest at the weekly rate.

Proceeds will be used to pay off the hospital's outstanding taxable bonds.

The university priced $109.925 million in series 2008A revenue bonds for the hospital on June 25.

Fordham University

The Dormitory Authority of the State of New York plans to price its previously announced $115 million revenue bonds for Fordham University, according to a preliminary official statement.

The series 2008B bonds (Aaa//) are insured by Assured Guaranty Corp.

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

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

Proceeds will be used for construction and renovation projects.

South Dakota Building Authority

The South Dakota Building Authority plans to price $74.235 million revenue bonds, according to a preliminary official statement released Wednesday.

A pricing date will not be determined until after the Fourth of July holiday, a source said.

The series 2008 bonds (/AA-/) have serial maturities from 2009 through 2028 and a term due 2033.

Banc of America Securities LLC will manage the negotiated sale.

Proceeds will be used to pay for improvements to Custer State Park and construction and renovation costs for 10 buildings on six campuses in the state.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.