Prospect Independent School District, Texas, sells $102.72 million; primary market action picks up

By Cristal Cody and Sheri Kasprzak

New York, Aug. 15 - Despite a lull recently in new issue activity, the coming week seems to offer several new pricing prospects for the municipal primary market, including a fairly large $350 million offering from the New York State Thruway Authority. Also included in the action is a $200 million sale from Baylor College of Medicine in Texas.

Meanwhile, the Prosper Independent School District in Texas sold $102.72 million in building and refunding bonds with a 5.06% true interest cost, a source said Friday.

The series 2008 bonds (/AAA/AAA) were sold as current interest and premium capital appreciation bonds.

The $102.31 million current interest bonds priced with 4% to 5% coupons to yield 3.6% to 5.18%. The bonds have serial maturities from 2016 through 2029 and terms due 2033, 2038, 2041 and 2043.

The $410,657 premium capital appreciation bonds priced to yield 3.5% to 5.33%. The bonds have serial maturities from 2013 through 2023.

Southwest Securities was the senior manager of the negotiated sale.

Proceeds will be used to construct, renovate and equip school facilities and to refund the district's series 1998 and series 2002 building and refunding bonds.

New York Thruway bonds

Moving to upcoming sales, the New York State Thruway Authority expects to price its previously announced offering of $350 million in fixed-rate transportation bonds on Wednesday, according to a calendar of offerings.

Citigroup Global Markets will be the senior manager for the negotiated deal.

The bonds (/AA/AA-) are due 2009 to 2028.

The proceeds will be used for highway and bridge capital improvements.

In other offerings for the week, the Baylor College of Medicine in Texas will price $200 million in series 2008D medical facilities revenue refunding bonds on Wednesday, according to a calendar.

The bonds (/A/) will be sold on a negotiated basis with Citigroup Global Markets as the senior manager. The co-managers are Merrill Lynch, Wells Fargo Brokerage Services and Goldman, Sachs & Co.

The bonds are due 2009 to 2018 with term bonds due 2023, 2028 and 2032.

Proceeds will be used to refund the college's outstanding series 1999B and 2005A bonds.

Cape Fear Utility offering ahead

In other new offerings, Cape Fear Public Utility Authority in North Carolina plans to price $194.285 million water and sewer system revenue bonds on Wednesday, Brent McAbee, chief financial officer, told Prospect News.

The series 2008 bonds (Aa3/AA/) have serial maturities from 2010 through 2028 and terms due 2035.

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

Proceeds will be used to pay acquisition and construction costs for improvements to the authority's water and sanitary sewer systems.

Illinois Finance to price $154.1 million

Also ahead, the Illinois Finance Authority plans to sell $154.1 million revenue bonds for Northwest Community Hospital, according to a preliminary official statement.

The series 2008A fixed-rate bonds (Aa3/AA-/) have serial maturities from 2010 through 2019 and terms due 2023, 2033 and 2038.

Goldman, Sachs & Co. is the senior manager of the negotiated sale, and Loop Capital Markets LLC is the co-manager.

Proceeds will be used to pay or reimburse the hospital for costs of acquiring, constructing, renovating and equipping health facilities.

School Board of Orange deal

Also this week, the School Board of Orange County in Florida will price a portion of its $99.365 million sale of certificates of participation, a sellside source told Prospect News Friday.

On Wednesday, the board will price $48.365 million in series 2008D certificates. The remainder of the sale - $51 million in series 2008E COPs - will be priced Sept. 5.

The COPs will be sold on a negotiated basis with Citigroup Global Markets as the senior manager.

Proceeds from the offerings will be used to refund the school board's series 2002B COPs and the board's outstanding series 2007C COPs.

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