Trinity Health may offer $1.115 billion in bonds; NYC Municipal Water Authority sale set for Wednesday

By Cristal Cody and Sheri Kasprzak

New York, Oct. 20 - Even though more and more issuers are eager to set pricing dates on their bonds, a few were hesitant on Monday, citing a still shaky marketplace and a desire to wait until things settle down before jumping into the fray.

Princeton University had been set to price $213.4 million in revenue refunding bonds this week through the New Jersey Educational Facilities Authority but scrapped those plans, at least for now.

Sheryl Stitt, spokeswoman for the authority, said the rocky market led the authority to put the sale on the back burner.

"That was the original plan," she acknowledged when asked if the bonds were set to price this week.

"Unfortunately, market conditions have caused us to re-evaluate that plan."

Stitt could not provide an idea of when the bonds might sell, noting that the offering would remain postponed until market conditions improve satisfactorily.

The bonds are set to sell through senior manager J.P. Morgan Securities.

Proceeds will be used to refund outstanding bonds.

Trinity Health to bring billions

Moving to one of the larger bond sales coming up, Trinity Health Credit Group expects to sell $1.115 billion in fixed- and variable-rate bonds in October and November, the issuer said Monday.

"The two primary reasons are for $175 million that is reimbursement of capital spending that's taken place and the balance is restructuring of existing debt we've launched in previous years that now we want to replace with uninsured variable-rate demand bonds," said Jim Bosscher, vice president of treasury.

Michigan-based Trinity Health plans to price $135.855 million in series 2008B revenue and refunding bonds (Aa2/AA/AA) through the Idaho Health Facilities Authority on Oct. 28, he said.

Trinity Health also plans to sell $89.135 million in series 2008A-1 and $70 million in series 2008A-2 revenue and refunding bonds (Aa2//AA) through the Michigan State Hospital Finance Authority on Oct. 28.

The bonds will price through negotiated sales led by senior managers Merrill Lynch and Goldman, Sachs & Co.

The proceeds will be used to finance or refinance the costs to acquire, construct and equip health-care facilities in Idaho and Michigan and to refund outstanding debt.

Next month, Trinity Health expects to price $820 million in variable-rate bonds in Michigan and Indiana on Nov. 12, subject to market conditions, Bosscher said.

The proceeds will be used to refund debt and to finance or refinance the costs to acquire, construct and equip health-care facilities in California, Indiana and Michigan.

NYC water sale ahead

Looking to this week's bond sales, the New York City Municipal Water Finance Authority is expected to price its previously announced $200 million in series 2009A water and sewer system revenue bonds on Wednesday, said a calendar of sales.

The bonds (Aa1/AAA/AA+) will be sold through lead manager M.R. Beal & Co.

Proceeds will be used for construction on improvements to the city's water and sewer system and for a deposit to a debt service reserve fund.

Also coming up this week, the New Jersey Housing and Mortgage Financing Agency is slated to sell $250 million in series 2008 single-family mortgage revenue bonds, according to a calendar of sales. The exact pricing date could not be determined Monday.

The bonds will be sold through senior manager Banc of America Securities.

Proceeds will be used for the purchase of single-family mortgage loans.

Irving Convention bonds deal

In other offerings coming up later this week, the Irving Convention Center in Texas plans to price $125 million in bonds, a sales calendar said.

The bonds will be sold on a negotiated basis with J.P. Morgan Securities as the lead manager.

Proceeds will be used for construction on the convention center.

Yet another offering in the works is a $110 million sale of series 2008 revenue refunding bonds from the Florida Municipal Power Agency, according to a calendar of upcoming sales.

The bonds (//A+) will be sold on a negotiated basis with Wachovia Bank as the senior manager.

The bonds are due from 2009 to 2027 with a term bond, the maturity of which has not been determined.

The offering is part of a larger sale, which includes $40 million in series 2008 revenue refunding bonds for the Stanton coal project and $115 million in series 2008A bonds for the St. Lucie nuclear project.

Proceeds from this sale will be used for the Stanton II project, a coal-powered electric-generating unit.

Port of Portland to price revenue bonds

Looking ahead, the Port of Portland in Oregon intends to price $140 million revenue bonds on Nov. 5, according to a sale calendar.

The series 2008 bonds will be sold through a negotiated sale managed by Goldman Sachs.

The proceeds will be used for airport improvements.

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