Summer pricing action looks strong into August; New York water authority sells $334.075 million

By Cristal Cody and Sheri Kasprzak

New York, July 17 - Even though pricing action this summer will remain active, volume may taper off in mid to late August, a sellsider told Prospect News Thursday.

"There are some significant issues that are planned for sale in health care," the sellsider said.

"But in August, the last couple of weeks, it generally dies down because of the holiday. A lot of investors take off."

Leading a reasonably active day for pricings, the New York City Municipal Water Finance Authority brought $334.075 million in series 2009AA water and sewer system second general resolution revenue bonds, according to an official statement.

The bonds (Aa3/AA+/AA) were sold on a negotiated basis with Depfa First Albany Securities as the lead manager.

The bonds are due 2013 to 2022 with coupons from 3.25% to 5% and yields from 3% to 4.28%.

Proceeds will be used to refund the authority's series 2008CC bonds, which are due 2022.

Integris prices $231.67 million

Integris Health in Oklahoma priced $231.67 million health system revenue and refunding bonds with a 5.29% true interest cost on Thursday, a sellside source told Prospect News.

"We were excited because we got the deal done this morning before the market fell apart," the sellside source said Thursday. "There were a bunch of economic releases this morning and the market reacted. Roughly, the M&D scale closed about 7 basis points higher today than it did yesterday."

The announcements painted a brighter picture for the country's economy, which caused investors to sell bonds and rates to rise, the sellsider said.

Integris' $114.67 million series 2008B bonds priced with 5% to 5.25% coupons to yield 2.24% to 5.489%.

The bonds have serial maturities from 2009 through 2014 and a term due 2038.

The $117 million series 2008C bonds priced with 4.5% to 5.25% coupons to yield 4.04% to 5.38%.

The bonds have serial maturities from 2014 through 2022 and terms due 2024 and 2029.

The bonds (Aa3/AA-/) were sold through the Oklahoma Development Finance Authority for Integris Baptist Medical Center, Integris South Oklahoma City Hospital and Integris Rural Health.

Goldman, Sachs & Co. was the senior manager of the negotiated sale.

Proceeds will be used to finance or refinance acquisitions and capital improvements and to refund $32.7 million of the $37.165 million outstanding from the series 1995D revenue refunding bonds and $117.3 million of the $118 million outstanding from the series 1999B variable-rate revenue refunding bonds.

Cleveland offering

In other news, the city of Cleveland had been expected to price $288.78 million in airport system revenue bonds (/AA/A-1+/AA+/F1+), but calls to the issuer for the terms were not immediately returned.

The bonds were sold on a negotiated basis with RBC Capital Markets, Wachovia Securities and JPMorgan as the lead managers.

The bonds bear interest at the weekly rate, and the 2008A and 2008B bonds are due 2027. The 2008C bonds are due 2024, the 2008D bonds are due 2024, the 2008E bonds are due 2024, the 2008F bonds are due 2033, the 2008G bonds are due 2017 and the 2008H bonds are due 2012.

The sale included $60.86 million in series 2008A bonds, $60.765 million in series 2008B bonds, $27.835 million in series 2008C bonds, $18.7 million in series 2008D bonds, $51.125 million in series 2008E bonds, $58 million in series 2008F bonds, $7.425 million in series 2008G bonds and $4.07 million in series 2008H bonds.

Proceeds will be used to refund the city's series 2003 airport bonds and series 2007A through 2007C airport bonds.

Charleston district prices TANs

Elsewhere, the Charleston County School District in South Carolina priced $63.4 million tax anticipation notes with a 1.514% net interest cost on Thursday, a source told Prospect News.

The series 2008 notes (MIG 1//) priced with a 2.5% coupon to yield 1.504%.

The notes are due April 1, 2009.

Lehman Brothers was the winning bidder out of eight bids in the competitive sale.

Proceeds will be used to fund operational expenditures during the fiscal year ending June 30, 2009, pending the collection of ad valorem taxes.

Crowley ISD pricing

Crowley Independent School District in Texas priced $80 million building bonds on Thursday, a source told Prospect News.

The series 2008 bonds were sold as current interest and capital appreciation bonds.

The sale terms are not final until after the district's board meets on Saturday. Final pricing terms will not be available until Monday, the source said.

The $77.99 million current interest bonds have serial maturities from 2014 through 2039.

The $2.01 million capital appreciation bonds have maturities on Aug. 29, 2008 and Aug. 1, 2010 through Aug. 1, 2013.

First Southwest Co. was the senior manager of the negotiated sale. Co-managers are Morgan Keegan & Co., Morgan Stanley, RBC Capital Markets and Edward D. Jones & Co.

Proceeds will be used to construct, renovate and equip school facilities.

Los Angeles Unified School District TRANs

Leading upcoming sales, the Los Angeles Unified School District in California intends to price $500 million tax and revenue anticipation notes on Wednesday, a source said Thursday.

The series 2008/2009A notes are due July 30, 2009.

Banc of America Securities LLC is the senior manager of the negotiated sale.

Proceeds will be deposited in the district's general fund and invested in the Los Angeles County Treasurer's Pool.

Port Authority sale planned

Also ahead, the Port Authority of New York and New Jersey is looking to price $500 million in series 153 consolidated bonds on Wednesday, said a preliminary official statement.

The bonds will be sold on a competitive basis and are due in a serial structure from 2018 to 2038.

Proceeds from the sale will be used for capital improvements, as well as for refunding existing obligations of the authority.

Florida Environmental Protection

The Florida Department of Environmental Protection plans to price $168 million revenue bonds, according to a sale notice.

The first date the series 2008B Florida Forever bonds may be sold is July 29.

Florida sells bonds through competitive sales with an 18-hour notice.

In other upcoming deals, Johns Hopkins University expects to price $132.64 million revenue bonds through the Maryland Health and Educational Facilities Authority on Wednesday, a source said Thursday.

The series 2008A bonds (Aa2/AA/AA+) are due in 2013, 2018 and 2038.

Morgan Stanley is the senior manager of the negotiated sale. JPMorgan and Jackson Securities are co-managers.

Proceeds will be used to finance and refinance construction and renovation costs for campus facilities.

West Palm Beach revenue bonds

West Palm Beach, Fla., plans to price $100.385 million utility system revenue bonds, according to a preliminary official statement.

The series 2008C variable-rate bonds are due Oct. 1, 2038.

The bonds initially will price as an optional tender bond with a weekly interest rate.

The city has entered into an interest rate swap of $52.875 million as a hedge against an identical amount of the series 2008C bonds.

The bonds are insured by Assured Guaranty Corp.

Citigroup Global Markets will manage the negotiated sale.

Proceeds will be used to repair and upgrade the water system.

Calls for additional information were not returned by press time.

Santa Clara district sale planned

The Santa Clara Unified School District in California plans to price $120 million general obligation bonds on Wednesday, according to a sale notice.

The series 2008 bonds (/AA/) were approved in a 2004 election.

The bonds have serial maturities from 2009 through 2033.

Government Financial Strategies is the district's financial adviser.

Proceeds will be used to renovate and expand school facilities.

In other California pricing activity, San Diego County expects to price $341 million bonds on July 29, according to Moody's Investors Service.

The series 2008A taxable pension obligation bonds (Aa3) will be sold to refund the county's outstanding series 2002B1 auction-rate bonds.

Additional information was not immediately available.

Children's Hospital bonds

Also coming up, Children's Hospital Los Angeles intends to price $150 million in series 2008 variable-rate revenue bonds, said a preliminary official statement.

The sale includes $50 million in series 2008A bonds due Aug. 15, 2023; $50 million in series 2008B bonds due Aug. 15, 2031; and $50 million in series 2008C bonds due Aug. 15, 2034.

The 2008A and 2008B bonds bear interest at the weekly rate, and the 2008C bonds bear interest at the daily rate.

The bonds will be sold through the California Statewide Communities Development Authority.

Banc of America Securities is the lead manager for the negotiated offering.

Proceeds from the sale will be used to refund the hospital's series 2002 and series 2004B bonds.

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