Issuers with good credit feeling good about pricing

By Cristal Cody and Sheri Kasprzak

New York, May 7 - Issuers who have good credit are feeling more comfortable with market conditions and some - including the Arizona Sports and Tourism Authority - are hoping to regain the weekly reset rate they had before the bond insurance collapse at the beginning of the year.

The sports and tourism authority is planning a $53.05 million remarketing, Chuck Foley, the authority's chief financial officer, said in an interview Wednesday, because their credit is much better than the credit of their insurer, Ambac.

"We went from rates back in January of about 3% per week weekly reset to as high as 9%," Foley said. "We feel very good about the remarketing. Our bonds have always been very well accepted."

The authority is replacing its series 2005A variable-rate demand revenue bonds with the 2008 bonds under a direct-pay letter of credit to get it back to the market rate, Foley said.

Heading up an active day for pricings, the Port Authority of New York and New Jersey priced $400 million in series 152 consolidated bonds Wednesday, said Steve Coleman, spokesman for the port authority.

The bonds (Aa3/AA-/AA-) are due from 2018 to 2038 with coupons ranging from 4.75% to 5.75%. The yields range from 4.6% to 5.45%.

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