California prices $3.43 billion RANs in retail offering; Ohio sets $385 million sale on day-to-day basis

By Cristal Cody and Sheri Kasprzak

New York, Oct. 15 - Even though at least one issuer postponed its planned sale of bonds Wednesday, others were more willing to head to market, including the State of California, which priced $3.431 billion of its planned $4 billion sale of revenue anticipation notes.

Issuers seemed to be more willing to move forward with offerings they had postponed, including the School Board of Orange County in Florida, which went ahead with its $85 million offering of series 2008 tax anticipation notes. The sale had been originally scheduled to price last week.

Still, the State of Ohio pushed back its $385 million sale of infrastructure project revenue bonds and placed the sale on day-to-day status, the issuer told Prospect News.

Moving back to the California sale, the state sold 85.8% of the series 2008-09A notes through retail orders and plans to price the remainder of the $4 billion in bonds on Thursday.

The yields on the notes (/SP-1/F1) were set by the state on Tuesday at 3.75% to 4.5%.

The notes due May 20, 2009 will price to yield 3.75% to 4%, and the notes due June 22, 2009 will price to yield 4.25% to 4.5%.

Banc of America Securities and Goldman, Sachs & Co. are the senior managers of the negotiated sale.

Proceeds will be used for the state's cash flow management needs.

Orange County school bonds

Also priced Wednesday was an $85 million offering of series 2008 tax anticipation notes from the School Board of Orange County in Florida.

The notes (MIG 1) priced with a 4% coupon at par, said Steve Compton, the district's senior administrator of treasury services.

The notes are due Oct. 1, 2009, and Citigroup Global Markets came in with the winning bid. The net interest cost came in at 2.417923%.

The financial adviser was SunTrust Robinson Humphrey.

The district had planned to price the notes last week, but the sale was postponed due to shaky market conditions.

Proceeds will be used for payment of expenses ahead of the collection of ad valorem taxes.

Also on Wednesday, the Frisco Independent School District in Texas successfully priced $136.2 million in unlimited tax school building and refunding bonds, a sellside source confirmed to Prospect News. However, the board has not approved the final numbers, the source said, and the terms may not be available until Thursday.

The bonds (Aa3/AAA/) were sold through senior manager First Southwest Co., and the proceeds will be used for various school facility project and to refund the district's outstanding debt.

Ohio delays deal

Ohio put off an expected sale on Wednesday of $385 million infrastructure project revenue bonds and placed the sale on day-to-day status, a source told Prospect News.

The series 2008-1 bonds (Aa2/AA/AA-) have serial maturities from 2009 through 2020.

Morgan Stanley is the senior manager of the negotiated sale.

The proceeds will be used to finance highway and bridge projects.

Connecticut to price $250 million G.O.s

Coming up in new offerings, Connecticut expects to price $250 million in general obligation bonds on Oct. 22, a source told Prospect News.

The series 2008C bonds (Aa3/AA/AA) also will be offered for retail orders on Tuesday and Wednesday.

"We're flexible, but we'll probably stick with that schedule," the source said.

The bonds have serial maturities from 2009 through 2028.

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

Proceeds will be used for various projects.

Houston to price $423 million

Later this month, Houston, Texas, expects to price $423 million in bonds and certificates (Aa3/AA/) on Oct. 29, a source said Wednesday.

The sale includes $393 million in series 2008A public improvement refunding bonds and $30 million in series 2008B tax and revenue certificates of obligation.

Goldman Sachs is the senior manager of the negotiated sale.

The proceeds will be used to refund and defease outstanding G.O. commercial paper notes and to fund the acquisition of real estate for a public facility and other public works projects.

Arizona State U to price $103.25 million revs

Also at the end of October, the Arizona Board of Regents at Arizona State University plans to price $103.25 million revenue bonds the week of Oct. 27, a market source said Wednesday.

"In light of market conditions, we don't have a specific date yet, but the current thinking is the week of Oct. 27," the source said.

The series 2008C bonds (Aa3/AA/) have serial maturities from 2010 through 2038.

Merrill Lynch & Co. will be the senior manager of the negotiated sale.

The proceeds will be used to reimburse the university for the costs of the Polytechnic Academic Complex, which includes a science and technology building and two classroom and office buildings, and the renovation of a hazardous materials facility.

On the horizon, Monroe County of New York intends to price $80 million in revenue anticipation notes, according to a preliminary official statement.

The series 2008 notes (/SP-1+/) are due April 15, 2009.

The notes will be sold through a negotiated sale managed by JPMorgan.

Proceeds will be used to pay operating expenses in anticipation of federal and state aid payments for social services programs and for the Monroe Community Hospital.

Bergen County sale ahead

Also coming up this month, the County of Bergen in New Jersey intends to sell $79.821 million in series 2008 G.O. bonds on Oct. 29, said a preliminary official statement released Wednesday.

The sale includes series 2008A bonds comprised of $44.583 million in general improvement bonds, $17.512 million in special services/vocational school bonds, $3 million in county college bonds and $3 million in state aid county college bonds and county hospital bonds. The deal also includes $11.726 million in series 2008B taxable bonds.

The bonds will be sold on a competitive basis.

The series 2008A and series 2008B bonds are due 2009 to 2023.

Proceeds will be used for the construction or renovation of capital projects throughout the county, including school construction, improvements at county colleges and improvements at county hospitals.

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