Round Rock schools prices $126.36 million bonds; Central Bucks sells $94.2 million G.O.s

By Cristal Cody and Sheri Kasprzak

New York, Feb. 12 - The Round Rock Independent School District in Texas led a heavy day of pricing activity with its $126.36 million in unlimited tax school building bonds - one of several Texas school bonds priced already this week.

The series 2008 bonds (Aa2/AA) priced with coupons from 4% to 5% and yields ranging from 1.8% to 4.4%, said Tracy Hoke, chief financial officer of the district.

The bonds have a true interest cost of 4.41%, Hoke said.

"My overall portfolio has slightly higher interest rates. This was smaller," she noted.

The bonds have serial maturities from 2009 through 2033.

Morgan Stanley was the lead manager.

Proceeds will be used to construct the district's fifth high school and to buy furniture and technology equipment for other campuses in Williamson and Travis counties.

Another school district was also in headlines selling bonds Tuesday.

The Central Bucks School District out of Pennsylvania sold $94.2 million in general obligation bonds in a competitive offering won by Bank of America.

The series 2008 bonds priced with yields from 1.75% to 4.13%, said Randolph Lawlace, vice president of public finance for the district's financial advisor, Janney Montgomery Scott LLC in Philadelphia. The bonds sold with a 4.188% true interest cost.

The bonds have serial maturities from 2009 through 2020, a term bond in 2023 and serials in 2024-2025, Lawlace said.

Moody's Investors Service assigned an Aa2 rating on Tuesday to the bonds.

Proceeds will be used to fund school building renovations and to refund outstanding series 2000 A bonds.

Texas City Independent School District bonds

Yet another school district - Texas City Independent School District - priced $54.565 million unlimited tax school building bonds with a 4.35% true interest cost, according to the final pricing list released Tuesday.

The bonds (Aaa/AAA) priced Monday with coupons from 3.5% to 4.5% with yields from 2% to 4.62%.

Southwest Securities led the negotiated sale.

The bonds have serial maturities from 2009 to 2030.

The sale is the first installment of $122.51 million bond offering authorized last year by voters. Proceeds will be used to acquire, construct and equip school buildings and renovate district facilities.

Monongalia Health System bonds

Monongalia Health System priced $63.8 million variable rate demand bonds on Tuesday, the issuer said.

The Morgantown, W.Va.-based health care system priced $34.4 million series 2008A bonds and $14.7 million series 2008B bonds that were issued through the Monongalia County Building Commission. The system also sold $14.8 million taxable series 2008 C bonds.

The 2008A and 2008B bonds priced with an initial 1.4% interest rate and the series 2008C bonds priced with an initial 3.18% rate, said Nicholas Grubbs, chief financial officer for Monongalia Health System.

The bonds, insured by CIFG (AAA), are seven-day interest bonds with a 32-year maturity, Grubbs said.

Raymond James & Associates is the underwriter of the negotiated sale.

Proceeds will be used to reimburse for pension liabilities, finance hospital renovations and purchase new equipment.

New York's MTA prices $1 billion in bonds

Elsewhere, the Metropolitan Transportation Authority of New York City priced $1 billion in transportation revenue bonds, said spokesman Jeremy Soffin Tuesday.

The offering had been postponed from Monday because the authority felt it needed additional time to prepare for the deal, Soffin told Prospect News. The bonds were upsized from $750 million.

The uninsured bonds priced with $600 million due in a serial structure from 2009 to 2028 and $400 million in term bonds due 2033 and 2038, Soffin said. The exact coupons and yields were not immediately available, Soffin added.

JPMorgan Chase & Co., Lehman Brothers and UBS Investment Bank were the lead managers for the negotiated offering.

Proceeds will be used for transit and commuter projects, and for the refinancing of debt held by the MTA and the MTA Bridges and Tunnels.

Other Tuesday pricings

Also set to price Tuesday was $111.525 million in series 2008A and metropolitan district bonds (Aaa) from Howard County in Maryland.

The bonds were sold on a competitive basis and include $107.5 million in series A consolidated public improvement bonds and $4.1 million in series 2008A metropolitan district bonds.

The full pricing terms were not available by press time Tuesday.

Proceeds will be used to repay the county's consolidated public improvement commercial paper bond anticipation notes and to pay for various water and sewer capital projects.

The city of St. Cloud in Minnesota was also expected to price healthcare variable-rate demand revenue bonds on Tuesday. The offering included $70 million in series 2008A, $70 million in series 2008B and $60 million in series 2008C bonds.

The bonds (Aaa/AAA) were to price on a negotiated basis with JPMorgan Chase & Co. as the lead manager for the 2008A and 2008B bonds and RBC Capital Markets as the lead on the 2008C bonds.

The terms could not be determined by press time Tuesday, but the bonds are due May 1, 2042.

The city plans to use the proceeds to pay for or reimburse St. Cloud Hospital and CentraCare for the construction of an addition to the hospital, construction of an expansion to the hospital's electrophysiology area and for the construction of a parking deck.

Elsewhere, Houston Community College planned to price $55 million in maintenance tax notes series 2008 on Tuesday.

The bonds (AA) were sold on a negotiated basis and will have maturities from 2009 to 2027.

Proceeds from the offering will be used to renovate and equip existing facilities.

San Diego to price bonds

Coming up, San Diego County Regional Transportation Commission in California plans to price $600 million in sales tax revenue bonds on March 18, a connected source told Prospect News Tuesday.

The competitive sale includes $300 million in series 2008A bonds and $300 million in series 2008B bonds.

The bonds are rated Aa2 by Moody's Investors Service.

A source connected to the deal confirmed the tentative pricing date, but could not comment further on the offering.

Proceeds from the deal will be used for several different capital projects.

University of Texas System plans deal

The Board of Regents of the University of Texas System is planning to price $680 million in series 2008B public higher education revenue bonds, confirmed Terry Hull, the system's finance director.

The bonds will be sold March 17, Hull told Prospect News. The bonds are variable-rate demand bonds and will be sold on a negotiated basis through reoffering agents Lehman Brothers and JPMorgan Chase & Co., he said.

"They'll reset weekly," Hull added. "We're looking to lock in a long-term rate. We're hoping for a savings on our current outstanding bonds, but with the current refunding, it's $680 million out of $30 billion, so it's really small."

Moody's Investors Service gave the bonds a Aaa/VMIG1 rating with a stable outlook.

Proceeds will be used to refinance $462 million in outstanding certificates of participation, refund $35 million in outstanding bonds and fund $182 million in campus improvements.

King County bonds

Also on the negotiated calendar, King County, Wash., plans to sell $177.635 million bonds, according to preliminary official statements.

King County, Wash., Public Hospital District 1 plans to price $115 million limited tax and general obligation bonds.

Principal and interest on the bonds will be guaranteed under a financial guaranty insurance policy by Assured Guaranty Corp,

The series 2008 bonds (Aaa/AAA/AAA) are being sold to refund all the district's outstanding hospital facilities revenue bonds series 2005A and series 2005B bonds and to finance a portion of renovations at Valley Medical Center.

Morgan Stanley is the underwriter.

King County also plans to price $62.635 million bonds for the Kent Special Events Center Public Facilities District.

Kent, Wash., in King County, plans to sell $52.505 million special events center sales tax bonds series 2008 bonds and $10.13 million taxable special events center revenue bonds series 2008.

Piper Jaffray & Co. is the lead underwriter.

The sales tax bonds have serial maturities from 2020 to 2028 with term bonds in 2033 and 2037.

The revenue bonds have serial maturities from 2009 through 2020.

Proceeds will be used to develop the 160,000-square-foot facility that includes a 6,025-seat ice arena.

Additional information was not available.

Biola University's bonds

Also coming up is a $96.595 million offering of tax-exempt refunding revenue bonds from Biola University in California, through the California Municipal Finance Authority.

The authority will price $88.63 million in series 2008A tax-exempt refunding revenue bonds and $7.965 million in series 2008B taxable refunding revenue bonds on March 6.

The bonds will be sold a negotiated basis through lead manager Lehman Brothers.

Moody's Investors Service rated the bonds Baa1 on Tuesday.

The university will use the proceeds to refund its outstanding series 2002 variable-rate demand revenue bonds and series 2004 taxable variable-rate demand revenue bonds, as well as to fund a reserve fund.

Commonwealth Financing Authority to sell bonds

In March, the Commonwealth Financing Authority of Pennsylvania intends to price $187.5 million in series 2008A fixed-rate, federally taxable revenue bonds.

The pricing is expected to occur the week of March 3, a source familiar with the deal said in an interview. No exact pricing date has been set for the competitive sale.

The bonds were rated AA- by Fitch and A1 by Moody's Investors Service.

The bonds have a serial structure from 2009 to 2027 and the proceeds will be used for economic development-related grants and loans to public and private entities.

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