Puerto Rico brings $250 million G.O.s; Jacksonville, Fla., sells $105 million revenue bonds

By Cristal Cody and Sheri Kasprzak

New York, Sept. 4 - The Commonwealth of Puerto Rico led an active day for muni pricings, selling $250 million in general obligation bonds.

The city of Jacksonville, Fla., also got in on the pricing action, pricing $105.47 million in revenue bonds Thursday.

Looking back to the Puerto Rico sale, the commonwealth sold the series 2008A G.O.s (Baa3/BBB-/) with a 5.5% true interest cost, according to information released to Prospect News.

The bonds were sold in the 103 Market with a spread of 80 basis points.

Orders were received from 37 institutional investors, with a two-fold oversubscription.

The bonds were sold in a negotiated sale led by Morgan Stanley, Banc of America Securities and UBS Financial Services Puerto Rico.

Proceeds will be used to finance more than 860 infrastructure projects.

Jacksonville prices $105.47 million

In the Jacksonville deal, the city priced $105.47 million revenue bonds with a 4.66% TIC on Thursday, a market source said.

The series 2008 Better Jacksonville sales tax revenue bonds (Aa3/AA-/AA) priced with 4% to 5% coupons to yield 2.03% to 5.02%.

The bonds have serial maturities from 2009 through 2030.

Wachovia Securities was the winning bidder out of six bids from "pretty good-sized syndicates" in the competitive sale, the source said.

Proceeds will be used to reimburse the city for costs associated with Better Jacksonville capital improvements projects.

Delaware Housing sale

In other pricing news Thursday, the Delaware State Housing Authority priced $104.7 million in single-family mortgage revenue bonds Thursday, said a sellside source.

The bonds (Aa3/P-1/A/A-1/) are due in June 2009 and have a 3.1% coupon, priced at par.

Depfa First Albany was the winning bidder for the competitive sale.

Proceeds will be used for the purchase of mortgage loans.

Microgy prices bonds

In other pricings, Microgy Holdings, LLC in California priced $62.425 million in series 2008 environmental facilities revenue bonds Wednesday, said a form 8-K filed Thursday with the Securities and Exchange Commission. The bonds were priced through the California Statewide Communities Development Authority.

The bonds, due Dec. 1, 2038, have a 9% coupon, priced at par, said the SEC filing.

The offering is the first tranche in a planned $88.445 million sale with the second tranche expected to close in October.

Ziegler Capital Markets was the lead manager for the negotiated offering.

Proceeds will be used to construct and equip the company's California solid waste disposal facilities, which create renewable natural gas from cow manure.

Florida power agency bonds

Elsewhere Thursday, the Florida Municipal Power Agency sold $562.51 million in series 2008 all-requirements power supply project revenue bonds on Thursday, but the final pricing terms were not immediately available, a source with the issuer told Prospect News.

The bonds (//A+) were sold on a negotiated basis with Merrill Lynch as the senior manager.

The sale included $492.06 million in series 2008A bonds, due from 2010 to 2028 with term bonds due 2033, and $70.45 million in series 2008B bonds, due 2010 to 2018.

Proceeds will be used for construction of the Cane Island Unit No. 4 generation project and to refund auction-rate securities.

Panhandle-Plains authority deal

Moving to upcoming offerings, the Panhandle-Plains Higher Education Authority in Texas plans to price $200 million Trust I student loan revenue bonds, according to a preliminary offering memorandum.

The series 2008A1 senior series bonds have serial maturities from 2011 through 2023.

Banc of America Securities LLC will manage the negotiated sale.

Proceeds will be used to refund outstanding auction-rate bonds and to purchase student loans.

Also ahead, Orange County, Calif., announced plans Thursday to price $100 million in series 2008-2009 tax and revenue anticipation notes later this month.

The notes (MIG 1/SP-1+/F1+) will be sold on a negotiated basis with De La Rosa & Co. as the senior manager, according to a preliminary official statement.

The notes are due June 30, 2009.

Proceeds will be used to fund general cash flow needs through 2008 and 2009.

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