Albert Einstein Healthcare delays sale; Virginia school authority postpones Fluvanna County's sale

By Cristal Cody and Sheri Kasprzak

New York, Sept. 25 - Issuers are apparently still too shaken by current market conditions to move forward with their offerings. Some cited an unfriendly credit market, while others say the markets are just plain confused.

Among the sales thwarted by continued market concerns was an $88.54 million sale of revenue bonds from the Albert Einstein Healthcare Network in Pennsylvania.

The bonds had been scheduled to price Thursday through the Pennsylvania Economic Development Financing Authority, a source told Prospect News.

"The credit markets just are not friendly today," the source said Thursday. "When they're friendly, we'll price them."

The series 2008A bonds (A3//A-) have serial maturities from 2009 through 2018.

Goldman, Sachs & Co. is the manager of the negotiated sale.

Proceeds will be used to help refund the Hospitals and Higher Education Facilities Authority of Philadelphia series 1998A revenue bonds.

Fluvanna County sale delayed

Also postponed Thursday was the Virginia Public School Authority's competitive sale of $67.26 million special obligation school financing bonds for Fluvanna County, the state director of debt management told Prospect News.

The state will re-evaluate market reaction next week for the series 2008 bonds, but the earliest the bonds may price now is probably the week of Oct. 6, said Evelyn Whitley.

"Obviously the markets are a little confused at the moment," she said. "Firms aren't bidding on the bonds like they normally would so it was recommended we postpone and revisit it next week."

The bonds (A1/AA-/) have serial maturities from 2011 through 2035.

BB&T Capital Markets is the authority's financial adviser for the sale.

Davenport & Co. is the county's financial adviser.

Proceeds will be used for capital school improvement projects.

MetroWashington Airports bonds

Looking to upcoming sales, the Metropolitan Washington Airports Authority plans to price $175 million revenue bonds, according to a preliminary official statement released Thursday.

The series 2008B bonds (Aa3/AA-/AA) will be sold through a negotiated sale led by senior manager Siebert Brandford Shank & Co.

Proceeds will be used to pay for capital project costs, capitalized interest on outstanding bonds, a deposit to the reserve account and the costs to terminate interest rate swap agreements with Wachovia Bank and the Bank of Montreal.

Wayne County Airport sale ahead

In other new issues, the Wayne County Airport Authority in Michigan is expected to price $74.795 million in series 2008 airport revenue refunding bonds on Oct. 2, said a sellside source associated with the deal. The bonds are being sold for the Detroit Metropolitan Wayne County Airport.

"We're aiming for Oct. 2," he said.

"With market conditions the way they are, that might change, but that's the plan for right now."

The sale includes $37.33 million in series 2008E bonds and $37.465 million in series 2008F bonds.

The bonds (Aaa/VMIG 1/AAA/A-1+/) will be sold on a negotiated basis with JPMorgan and Citigroup Global Markets as the senior managers.

Proceeds will be used to refund the authority's outstanding series 1996A and 1996B bonds.

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