Oklahoma Power brings $99.33 million at 5.95% TIC; Tarrant County authority to sell $366 million

By Cristal Cody and Sheri Kasprzak

New York, Oct. 23 - More and more issuers are breathing something of a sigh of relief, but some remain anxious about pricing their bonds, according to one sellside source.

"I would say the market has improved, probably over the last couple of weeks," he said.

"I think a lot also depends upon the issuer, because some will have better luck than others. It depends on what they're selling and how they're doing. We're seeing fewer and fewer new deals in the past week or so because the issuers have basically said, 'Well, we have enough cash so we really don't need this right now.' I'm sure eventually some things will be put back on the table, but it's a tough market right now."

A return of investor appetite may have helped the Oklahoma Municipal Power Authority sell its $99.33 million in revenue bonds, a source told Prospect News. The bonds priced with a 5.95% true interest cost Thursday.

"We had a tremendous demand for our paper today, which was issued on our own credit without bond insurance," the source said.

"There has been a return of investor appetite for muni bonds this week and OMPA is pleased with the outcome."

The series 2008A bonds (A2/A/) priced with 5% to 6% coupons to yield 4.74% to 6%.

The bonds have serial maturities from 2015 through 2020 and terms due 2028 and 2038.

JPMorgan was the senior manager of the negotiated sale.

The proceeds will be used to finance a portion of construction and acquisition costs for an ownership interest in two electric generating plants and to fund other capital projects and interest on the bonds during the construction period.

Santee Cooper sells $350 million

Elsewhere, the South Carolina Public Service Authority, which operates as Santee Cooper, successfully priced $350 million in revenue obligations Thursday, said Mollie Gore, spokeswoman for the authority.

The pricing terms, she said, were still being finalized and were not immediately available.

Goldman, Sachs & Co. was the lead manager with Citigroup Global Markets as the co-manager.

The sale included $300 million in series 2008A bonds and $50 million in series 2008B bonds.

Proceeds will be used for a portion of the authority's ongoing capital improvement program and for the retirement of outstanding commercial paper notes.

Tarrant County sale ahead

Heading up future pricings, the Tarrant County Cultural Education Facilities Finance Corp. in Texas is expected to price $366.12 million in series 2008 Texas Health Resources System revenue bonds on Tuesday, said a preliminary official statement.

The bonds (Aa3/VMIG 1/AA-/A-1+/) will be sold on a negotiated basis with Morgan Stanley as the senior manager for the series 2008A, 2008C and 2008F bonds and JPMorgan as the senior manager for the series 2008B, 2008D, 2008E and 2008G bonds.

The 2008A bonds are due 2033 and reset at the weekly rate; the 2008B bonds are due 2033 and reset at the weekly rate; the 2008C bonds are due 2033 and reset at the daily rate; the 2008D bonds are due 2019 and reset at the daily rate; the 2008E bonds are due 2047 and reset at the weekly rate; the 2008F bonds are due 2033 and reset at the weekly rate; and the 2008G bonds are due 2033 and reset at the daily rate.

Proceeds will be used for construction, renovations and rehabilitation at Texas Health Resources.

Fairview Health to price $222.5 million

Also ahead, Minneapolis plans to price $222.5 million in variable-rate revenue bonds for Fairview Health Services, according to a preliminary official statement.

The $84.375 million series 2008C, $28.125 million series 2008D and $110 million series 2008E bonds are due in 2047.

Citigroup Global Markets will manage the negotiated sale of the series 2008C bonds. RBC Capital Markets will manage the sale of the series 2008D bonds, and Wells Fargo Brokerage Services LLC will manage the series 2008E bonds.

The bonds will price initially with a weekly interest rate.

The proceeds will be used to finance the costs to construct and equip health-care facilities, including a replacement children's hospital at the University of Minnesota Medical Center.

Sonoma to sell $115 million

In other upcoming deals, Sonoma County in California is expected to sell $115 million in series 2008-09 tax and revenue anticipation notes on Oct. 30, said a preliminary official statement.

The notes (/SP-1+/), which are due Oct. 29, 2009, will be sold on a competitive basis with KNN Public Finance as the financial adviser.

Proceeds will be used for capital expenditures incurred before the collection of certain taxes and revenues.

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