University of Akron plans second offering; Dormitory Authority sets timing on $276.44 million sale

By Sheri Kasprzak

New York, Feb. 22 - After a jam-packed week of offerings, municipal market activity Friday slowed substantially.

Heading up the light day was a $90.85 million offering of 2008A general receipt bonds from the University of Akron in Ohio. The terms of the bonds, which priced Feb. 15, were released in a official statement Friday.

The university also announced plans Friday to price another offering of bonds, this one series 2008B general receipt bonds (Aaa/AAA). That deal is expected to price March 1.

The 2008A bonds priced in a serial structure from 2011 to 2029 with term bonds due 2024, 2028, 2030, 2033 and 2038. Coupons ranged from 3% to 5% with yields from 2.35% to 4.55%.

The term bonds have coupons ranging from 5% to 5.25%.

Morgan Stanley was the lead manager for the negotiated sale.

The proceeds will be used to construct, improve, equip and furnish a multipurpose stadium, a parking deck, student housing and the university's Robertson Dining Hall.

The series 2008B bonds will be sold through lead manager Morgan Stanley and the proceeds will be used to construct a stadium, a student residential facility and parking facility, as well as convert a hotel into a dormitory and refund the university's 2003A and 2003B general receipt rental notes.

Dormitory Authority of New York announces pricing date

In other news, the Dormitory Authority of the State of New York will price its previously announced offering of $276.445 million in state personal income tax revenue bonds on Feb. 26, spokesman Marc Vyolette said in an interview Friday.

The offering, as reported in Prospect News, includes $112.44 million in series 2008A economic development and housing bonds, $94.465 million in series 2008B federally taxable economic development and housing bonds and series 2008A healthcare bonds (AAA/AA-).

In the negotiated sale, Loop Capital markets will be the lead manager for the 2008A economic development and housing bonds and the 2008A healthcare bonds. M.R. Beal & Co. is the lead manager for the 2008B federally taxable economic development and housing bonds.

The 2008A economic development and housing bonds are due from 2008 to 2017 and the 2008B federally taxable economic development bonds are also due from 2008 to 2017.

The 2008A healthcare bonds are due in a serial structure from 2009 to 2018 with term bonds due in 2023, 2028, 2033 and 2037.

Proceeds from the 2008A and 2008B economic development bonds will be used for capital expenses on several programs. The 2008A healthcare bonds will be used for grants to healthcare institutions under the HEAL NY program.

Howard Hughes releases terms of sale

In other recently priced deals, the Howard Hughes Medical Institute priced $83.5 million multi-modal revenue bonds with a 2.2% initial weekly rate.

The series 2008A bonds (Aaa/AAA) sold Thursday with four times the number of buyers needed, due to the institute's AAA credit ratings, Ed Palmerino, vice president for finance and treasurer, told Prospect News on Friday.

The bonds, priced through the Maryland Economic Development Corp., were sold through a counterparty swap that provides a synthetic fixed rate. Bondholders will purchase the bonds as a weekly variable rate. The bonds have 35-year maturities.

"We did hedge our bets. We entered into an interest rate swap for $83.5 million for 30 years," Palmerino said.

Citigroup Global Markets managed the negotiated sale.

Proceeds will be used to renovate and expand administrative headquarters.

The institute also plans to price $76.5 million series 2008B weekly variable rate bonds on April 1 to refinance outstanding debt.

Ohio Building Authority hits market

Looking ahead to the coming week, the Ohio Building Authority expects to price $124.62 million refunding and new-money bonds Wednesday.

The offering is comprised of $50 million series 2008 A state facilities bonds; $24.62 million series 2008 B state facilities refunding bonds; and $50 million state facilities bonds, according to a release Friday from Moody's Investors Service.

Moody's assigned an Aa2 rating and a negative outlook to the bonds. Moody's cites a negative outlook because of Ohio's economic lags and budget stress.

Proceeds of the issues will be used to refund Administrative Building Fund Projects bonds sold in 2002 and to provide new capital for administrative building and correctional building projects.

Atlanta's Children's Healthcare bonds

Also coming up, the Children's Healthcare of Atlanta confirmed its plans to price $193 million bonds and certificates on Thursday.

The $72.965 million series 2008A variable-rate demand bonds will be issued through the Development Authority of Fulton County. The $120 million 2008B variable rate demand certificates will be issued through the DeKalb Private Hospital Authority, the issuer said Friday.

Citigroup Global Markets will place 65% of the sale, and SunTrust Robinson Humphrey will place the remaining 35%, said Allan Gasiorek, chief investment officer of Children's Healthcare.

Proceeds will be used to refund series 2005A and 2005C bonds and reimburse prior capital expenditures.

Moody's assigned an Aa2/VMIG1 rating to the bonds and certificates on Thursday.

Michigan Strategic Fund bonds to price

Michigan Strategic Fund also expects to price $77.37 million insured state House of Representatives limited obligation revenue and revenue refunding bonds on Thursday.

The bonds will price as $75.29 million series 2008A bonds and $1.13 million series 2008B taxable bonds, according to a preliminary official statement released Friday.

Series 2008A bonds will mature 2011 to 2023. Series 2008B bond are due 2011.

The bonds (A2/A+), rated Aaa/AAA with insurance, are insured by Assured Guaranty.

Citi and Oppenheimer are the underwriters of the negotiated sale.

Proceeds will be used for debt issued in 1998 to finance construction of an office building for the House of Representatives, pay off an elevator loan and for capital improvements.

Salt River Project Power District's bonds

In other upcoming deals, Salt River Project Agricultural Improvement and Power District in Phoenix, Ariz., plans to price $800 million fixed-rate electric system revenue bonds on March 4, the issuer said Friday.

Series 2008 A bonds (Aa1) have preliminary maturities through 2038 and will include at least two term bonds, said Steve Hulet, treasurer of the electric utility.

Bear, Stearns & Co. is the senior manager of the negotiated sale.

Proceeds will finance the utility's ongoing capital improvement plan to expand the electric system.

Florida to bring several bonds

Florida intends to price $155 million right-of-way acquisition and bridge construction bonds.

The Department of Transportation full faith and credit series 2008A bonds will have serial maturities from July 1, 2008, through July 1, 2017, according to a preliminary official statement released this week.

Proceeds will finance the cost of acquiring property for rights of way and for state bridge construction.

The state also plans to price $278 million series 2008A forever revenue bonds for the state Department of Environmental Protection, and $315.4 million series 2008A State Board of Education lottery revenue bonds.

Florida bond sales are on an 18-hour notice.

Austin plans $50 million bond sale

Elsewhere, the City of Austin confirmed it will price $50 million in series 2008 taxable series electric utility revenue refunding bonds on Feb. 28.

The bonds (A1) are being sold on a negotiated basis through Banc of America Securities on behalf of the Austin Enterprise Electric Utilities, said Elaine Hart with the utility Friday.

Proceeds will be used to refund the utilities' $50 million in outstanding commercial paper notes.

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