Colorado Hospital Authority leads pricing action; Santa Rosa, Calif., prices $62.48 million

By Cristal Cody and Sheri Kasprzak

New York, June 25 - Another active day for pricings was led by a revenue bond sale from the University of Colorado Hospital Authority.

The authority priced $92.6 million in revenue bonds with a 1.5% initial rate on Wednesday, a source told Prospect News.

The $19.1 million series 2008A bonds are due Nov. 15, 2024. The $73.5 million series 2008B bonds are due Nov. 15, 2031.

The bonds (Aaa//AA-) priced with an initial weekly interest rate.

Citigroup Global Markets managed the negotiated sale.

Proceeds will be used to refund the $72.41 million series 2007A refunding revenue bonds and to finance equipment for the University of Colorado Health Sciences Center.

Santa Rosa sells $62.48 million

Elsewhere, Santa Rosa, Calif., sold $62.48 million in revenue bonds; the market conditions were anything but ideal.

"It was not a good market," said Emily Giles with Public Financial Management, the city's financial adviser. "We had to look at the rule books to see if that was OK [for one bid]. The strange thing was we had seven banks signed up to bid. It was kind of disappointing, but we think we got a fair bid."

The $48.63 million series 2008A wastewater revenue bonds (A2/A+/) priced with a 4.852% true interest cost from lone bidder Morgan Stanley, Giles said.

The bonds priced with 4% to 5.25% coupons to yield 2% to 5%.

The bonds have serial maturities from 2009 through 2028.

The $13.85 million series 2008 water revenue bonds (Aa3/AA/) priced with a 4.972% TIC in a competitive sale won by Citigroup Global Markets out of two bidders.

The bonds priced with 3.65% to 5% coupons to yield 2% to 5.07% with serial maturities from 2009 through 2038.

Proceeds will be used for water and wastewater system improvements.

Indianapolis Airport bonds

In other pricing news Wednesday, the Indianapolis Airport Authority priced $350 million in series 2008C variable-rate revenue bonds (A1//A+), said Susan Sullivan, a spokeswoman for the airport.

Sullivan said the terms of the sale would not be available until Thursday.

The bonds were sold on a competitive basis, and the proceeds will be used for the construction of a new terminal building.

Also, the North Texas Tollway Authority had been expected to price $124.62 million in series 2008G first-tier revenue refunding bonds (A2/A-/), but calls to the issuer for the terms were not immediately returned.

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

The bonds are due Jan. 1, 2038, and proceeds will refund the Dallas North Tollway System's series 2003B revenue refunding bonds.

North Brevard's $108.09 million deal

Moving to upcoming sales, the North Brevard County Hospital District, which operates Parrish Medical Center in Florida, expects to price $108.09 million revenue refunding bonds on July 16, a source with the issuer said Wednesday.

The series 2008 bonds (/A/A+) will price in a negotiated sale managed by Raymond James & Associates.

Proceeds will be used to finance the acquisition and construction of an outpatient health-care center, a cardiac catheterization lab and other projects, to fund a reserve fund and to refund the outstanding series 2000 and 2005 auction-rate revenue bonds.

Bell County notes, bonds

Bell County, Texas, expects to price $69.35 million in limited tax notes and refunding bonds on July 10, said Garry Kimball with First Southwest Co., the county's financial adviser.

The $38.6 million series 2008 limited tax notes have maturities from 2009 through 2015, according to a preliminary official statement released Wednesday.

The $30.75 million series 2008 limited tax refunding bonds have serial maturities from 2014 through 2026.

RBC Capital Markets is the senior manager of the negotiated sales.

Proceeds will be used to refund $28.65 million of the county's series 2006 limited tax notes due 2009 through 2013. The county will also use proceeds for land acquisitions, to purchase equipment and computer technology and for construction and repairs to county buildings, roads and parking lots.

Rady Children's Hospital sale

Also coming up, the Rady Children's Hospital of California plans to sell $127.5 million in series 2008 variable-rate revenue bonds, according to a preliminary official statement.

The sale includes $63.75 million in series 2008A bonds and $63.75 million in series 2008B bonds.

Both series of bonds are due Aug. 15, 2047. The 2008A bonds bear interest at the weekly rate, and the 2008B bonds bear interest at the daily rate.

Goldman, Sachs & Co. is the lead manager for the negotiated offering.

Proceeds will be used to refund the hospital's outstanding series 2007A and 2007B bonds.

Shands Jacksonville to price bonds

In other upcoming deals, the Shands Jacksonville Medical Center of Florida intends to price $59.33 million in series 2008 revenue bonds on Thursday, a sellside source familiar with the sale said Wednesday afternoon.

Wachovia Securities is the senior manager for the negotiated bond sale.

The bonds (Aa1/VMIG1//) will be sold through the Jacksonville Economic Development Committee and will be issued as direct-pay letters of credit and initially bear interest at the daily rate. The bonds may be converted to the weekly, commercial paper or long-term rates.

Oakland changes pricing date

In other news, the City of Oakland in California has changed the pricing date on its $155 million sale of tax and revenue anticipation notes to July 9 from July 8.

Dawn Holt, financial analyst with the city's treasury department, said the original date was from an old calendar and was updated ahead of the release of the preliminary official statement.

As previously reported, the sale includes $70 million in series 2008A notes and $85 million in series 2008B notes. The 2008A notes will be sold on a competitive basis, and the 2008B notes will be sold on a negotiated basis with JPMorgan as the senior manager.

The notes (MIG1//F1+) are expected to have a one-year term.

Proceeds will be used to finance the city's anticipated mid-year cash flow needs and to prepay the city's annual contribution to the California Public Employees Retirement System for fiscal year 2008-2009.

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