Sales pick up, bidders crowd market; Michigan Bond Authority to bring $690.59 million revenue notes

By Cristal Cody

Springdale, Ark., July 31 - Muni action picked up as bidders packed sales in a "fantastic market" and issuers continued to bring new offerings.

Nine bidders went out for the $82.6 million unlimited tax school building bonds from Burleson Independent School District in Texas.

The bonds priced with a 5.0676% true interest cost on Thursday, a market source told Prospect News.

The series 2008 bonds (Aaa//AAA) have serial maturities from 2010 through 2024 and terms due 2033 and 2038.

Depfa First Albany Securities LLC was the winning bidder in the competitive sale.

"They bought the issue by themselves - they didn't use a syndicate," the source said.

Prager, Sealy & Co. came in second with a 5.07% TIC bid, while Morgan Stanley came in last with a bid of 5.14%.

Proceeds will be used to construct, renovate and equip schools.

Michigan revenue notes

Meanwhile, several new offerings are ahead, including a planned sale of $690.59 million revenue notes from the Michigan Municipal Bond Authority on Monday, a source told Prospect News.

The series 2008 notes are due Aug. 20, 2009.

The sale includes $197.465 million series 2008A1 and $493.125 million series 2008A2 notes.

Siebert Brandford Shank & Co. is the senior manager of the negotiated sale.

Proceeds will be used to purchase notes from school districts to provide funds to meet operating cash flow deficits anticipated in the fiscal 2008/2009 year.

Looking ahead a week, the School Building Authority of West Virginia expects to price $100 million excess lottery revenue bonds on Aug. 7, a source said Thursday.

The series 2008 bonds also will be sold through retail orders on Wednesday.

Merrill Lynch & Co. is the senior manager of the negotiated sale.

Proceeds will finance school construction and renovations.

Texas sales

In pricing news, the North Harris County Regional Water Authority in Texas sold $241.16 million senior lien revenue bonds on Thursday, but the final terms will not be available until Friday, a source familiar with the sale told Prospect News.

The series 2008 bonds (/A+/) have serial maturities from 2013 through 2038.

First Southwest Co. is the senior manager of the negotiated sale.

Proceeds will be used to the finance the design, acquisition and construction of regional water production, pumping, distribution, storage and administrative facilities, to fund 24 months of capitalized interest and to fund a debt service reserve fund or surety bond for the series 2008 bonds.

The Austin Community College District Public Facility Corp. also planned to price $119.425 million series 2008 lease revenue bonds (Aa3/AA/), but calls to confirm the sale were not immediately returned.

Wachovia Bank, NA, was the senior manager of the negotiated sale.

Proceeds will be used for acquisitions, construction and equipment at the Round Rock Campus.

Kentucky Turnpike Authority prices $200 million revenue bonds

The Turnpike Authority of Kentucky was finishing up the sale of $200 million revenue bonds on Thursday, a source told Prospect News.

The series 2008 bonds (Aa3/AA+/AA-) priced in a negotiated sale managed by Goldman, Sachs & Co.

Final terms are expected to be available on Friday.

The Imperial Irrigation District in California was expected to price $250 million electric system refunding revenue bonds on Thursday, but calls to confirm the sale were not immediately returned.

The series 2008 bonds (Aa3//) will refund $42 million in outstanding series 1998 bonds and $175 million of outstanding commercial paper notes.

The New Jersey Higher Education Student Assistance Authority also planned to price $350 million student loan revenue bonds on Thursday.

The series 2008A bonds are insured by Assured Guaranty Corp.

Morgan Stanley was the senior manager.

Proceeds will be used to make deposits to the student loan and capitalized interest funds.

North Carolina improvement bonds

Coming in August, North Carolina intends to bring $200 million capital improvement limited obligation bonds via a competitive sale on Aug. 13, according to a sale notice released Thursday.

The series 2008A bonds (Aa1/AA+/AA+) have serial maturities from 2010 through 2028.

First Southwest Co. is the state's financial adviser.

Proceeds will be used for capital projects that include medical facilities, museums, youth development centers, parks and game lands and prison additions.

Enloe Medical Center to price $175.13 million

In other news, the Enloe Medical Center plans to price $175.125 million insured revenue bonds through the California Statewide Communities Development Authority, according to a preliminary official statement.

The series 2008B bonds will be insured with the Office of Statewide Health Planning and Development of the State of California.

Merrill Lynch & Co. will manage the negotiated sale.

Proceeds will be used to finance and refinance the acquisition, construction, expansion and furnishing of health-care facilities.

The Ohio Housing Finance Agency intends to price $150 million residential mortgage revenue bonds, according to a preliminary official statement.

The sale includes $85 million series 2008F fixed-rate bonds with split serial maturities from 2009 through 2018 and terms due 2028, 2033 and 2039, $13.75 million series 2008G fixed-rate term bonds due 2023 and $13.75 million series 2008H and $37.5 million series 2008I variable-rate bonds due 2039.

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

Proceeds will be used to finance new mortgage loans to qualified low- and moderate-income applicants and to refund outstanding obligations.

Richard Stockton College revenue bonds

In other upcoming offerings, Richard Stockton College of New Jersey expects to price $135.68 million revenue bonds through the New Jersey Educational Facilities Authority, according to a preliminary official statement.

The series 2008A bonds have serial maturities from 2011 through 2018 and terms due 2028, 2033 and 2038.

Morgan Stanley is the senior manager of the negotiated sale.

Proceeds will be used to finance construction and equipment for campus facilities and to refund all of the outstanding series 2005C revenue bonds.

Additional information was not immediately available.

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