Wisconsin delays $135 million issue ahead of MLK holiday; Inland Empire prices $125 million bonds

By Cristal Cody and Sheri Kasprzak

New York, Jan. 17 - Wisconsin pushed back the pricing of $135 million in clean water fixed-rate bonds to the week of Jan. 28 because of the Martin Luther King, Jr. holiday on Monday.

The federal holiday cuts the market week too short, Larry Dallia, deputy capital finance director for the state, said Thursday. The deal had been scheduled for the Jan. 21 week.

"We've got Martin Luther King Day, so the markets are closed next Monday," he said. "You don't want to sell on Friday, so that narrows the window down a whole lot.

"Tuesday, Wednesday and Thursday are your normal days to sell, and now it's just Wednesday and Thursday, so it's more likely the week after," he said.

The state will issue 2008 series 1 clean water revenue bonds of about $100 million and the 2008 series 2 clean water revenue refunding bonds of about $35 million, with the final amounts depending on the market.

The refunding bonds are estimated at $35 million, but the series could be issued up to $125 million, said Frank Hoadley, the state's capital finance director.

"It's just a placeholder at this point," he told Prospect News. "Refunding depends on the market conditions. It's a matter of numbers."

Series 1 bonds have preliminary serial maturities from 2009 to 2028, while series 2 bonds mature 2016 to 2019.

The lead underwriter on the issues is Morgan Stanley.

The series 1 proceeds will be used for loans to municipalities for improvements to wastewater treatment facilities, while the series 2 proceeds will be used to refund outstanding bonds.

Inland Empire prices $125 million bonds

California-based Inland Empire Utilities Agency received a 5% coupon on the $125 million bonds it priced this week, the company confirmed Thursday.

The bonds (A1/AA-), issued through the Chino Basin Regional Finance Authority, priced Wednesday with a true interest cost of 4.79% and a 5% coupon, Dean Martin, executive manager of finance and administration of Inland Empire, said in an interview.

"We were looking for a 5% coupon," he said. "It makes it easier to refund in the future."

The bonds have serial maturities from 2023 to 2038.

Citigroup Global Markets is the lead underwriter.

Howard Hughes Medical plans two bond issues

Howard Hughes Medical Institute expects to price $161.5 million variable-rate bonds in February and April, the organization's treasurer said Thursday.

The Maryland Economic Development Corp. plans to price $85 million in series 2008A bonds for the nonprofit institute Feb. 21.

The institute also plans to issue series 2008B refunding bonds of $76.5 million in early April, Ed Palmerino, vice president of finance and treasurer for Howard Hughes Medical Institute, said in an interview.

"Even though we have the option of doing auction rate bonds, we're planning that the underwriters will determine that on a weekly basis," he said. "We set the interest rate each week."

No advance rate is set since it is based on market conditions.

"Right now, rates are running about 2.9 to 3%, it all depends on what happens in the next several weeks," Palmerino said.

Moody's Investors Service assigned a rating Wednesday of Aaa/VMIG1 to the series 2008A multi-modal revenue bonds.

The underwriter on the 2008A series is Citibank, and the underwriter on the 2008B series is Lehman Brothers.

The maturity series is expected to be up to 35 years for both bonds, Palmerino said.

The medical research organization plans to use the proceeds from the 2008A bonds to renovate and expand the administrative headquarters offices in Chevy Chase, Md. Proceeds from the 2008B bonds will be used to refund existing debt on the headquarters from the institute's series 1990 bonds.

American Municipal Power's bonds

Coming up, American Municipal Power, Inc. out of Ohio may price $350 million in series 2008A commercial paper bond anticipation notes.

The offering could not be confirmed Thursday with the issuer, but a statement from Moody's Investors Service said the bonds are set to price Jan. 22. Moody's rated the bonds P-1.

J.P. Morgan Securities Inc. is the dealer.

Maryland Transportation to bring $250 million bonds

The Maryland Department of Transportation will price $250 million of consolidated transportation bonds on Jan. 30 in a competitive sale.

The state expects the bonds to be rated by Jan. 25, a source said Thursday.

The series 2008 bonds have serial maturities from 2011 to 2023. Public Financial Management Inc. in Atlanta is the financial advisor.

Proceeds from the bonds will be used for a portion of capital projects for state highways and the transit system, including buses and light rail.

Montgomery County hospital bonds get rating

Moody's Investors Service assigned a rating Thursday of Aaa/VMIG 1 to $187.815 million Montgomery County, Ohio, hospital refunding and improvement bonds.

The variable-rate hospital facilities revenue refunding and improvement bonds, being issued through the Kettering Health Network Obligated Group, series 2008A and 2008B are municipal insured floaters, according to Moody's.

The $93.575 million series 2008A bonds and $94.24 million series 2008B priced Thursday, Moody's reported. Additional information was not available by press time.

The bonds will bear interest in a weekly mode, with interest paid monthly, beginning Feb. 1.

The trust indenture permits conversion of the bonds, in whole by series, to a daily, R-Floats, special R-Floats, term, fixed, auction, unit, indexed, and stepped coupon rate, according to Moody's.

Kalamazoo schools plan $119.55 million GOs

Portage Public Schools in Kalamazoo County, Mich., plans to issue $119.555 million unlimited tax general obligation bonds.

The series 2008 school building and site bonds are expected to be available for delivery in February. A pricing date was not immediately available.

The bonds have serial maturities from 2009 to 2031.

Wachovia Securities is the lead underwriter, and the financial advisor is H.J. Umbaugh & Associates in Lansing, Mich.

Portage Public Schools approved the bonds in November. Proceeds will be used for school construction and land.

Newark to price $98.466 million bonds

In other upcoming offerings, the city of Newark in New Jersey plans to issue $96.466, according to Moody's Investors Service, which rated the series 2008A general improvement bond anticipation notes and series 2008B water utility bond anticipation notes an MIG1 on Thursday.

The bonds, according to Moody's, are set to price Jan. 18, but the offering could not be confirmed with the issuer by press time Thursday.

The bonds include $60.966 million in series 2008A general improvement bond anticipation notes, $5.6 million in 2008B water utility bond anticipation notes and $29.9 million in 2008D school promissory notes.

Proceeds from the series 2008A, B and D notes will refund notes issued by the city on April 27, 2007, which are due Jan. 24, 2008, and fund projects authorized by a number of bond ordinances, the Moody's statement said. The notes are dated Jan. 24, 2008 and scheduled to mature Jan. 23, 2009, the statement said.

University of Akron plans offering

The University of Akron in Ohio plans to price $88.37 million in series 2008A general receipt bonds, according to a preliminary official statement released Thursday.

The bonds (Aaa/AAA) have a serial structure from 2011 through 2029 and include term bonds due 2033 and 2038. The 2011 maturity includes $1.955 million of bonds and the 2029 maturity is $4.41 million. The 2033 term bond includes $16.14 million and the 2038 term bond includes $17.435 million.

No pricing date was immediately available Thursday.

Morgan Stanley is the bookrunner with Fifth Third Securities, National City Investments, KeyBanc Capital Markets, SBK-Brooks Investment Corp. as the co-managers.

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