Pricing action heats up; Omaha brings $75.54 million in G.O.s with 3.829486% TIC

By Cristal Cody and Sheri Kasprzak

New York, July 14 - Despite Monday's light activity, pricing action for the rest of the week is heating up, with Tuesday packed with new issues.

Market sources said last week that the summer season is slowing pricing action, but billions of dollars in sales are expected, including a $1 billion general obligation and refunding sale from MTA Bridges and Tunnels in New York on Tuesday and a $415 million general obligation bond sale from Maryland on Wednesday.

Light market action on Monday was led by a $75.54 million sale of G.O. refunding bonds from Omaha.

The bonds priced with a 3.829486% true interest cost on Monday, a sellside source told Prospect News.

The series 2008 bonds (Aaa/AAA/) priced with 3.75% to 5% coupons to yield 1.8% to 4.38%.

The bonds have serial maturities from 2009 through 2025.

D.A. Davidson & Co. managed the negotiated sale.

Proceeds will refund maturities from outstanding bonds sold by the cities of Omaha and Elkhorn, Neb., and by Douglas County sanitary improvement districts.

McLaren leads Tuesday sales

Tuesday is gearing up to be a very busy day for pricing action, and the action includes a $203.665 million sale of series 2008 fixed-rate revenue and refunding bonds from McLaren Health Care.

The bonds (A1/AA-/AA-) will be sold on a negotiated basis, and Citigroup Global Markets is the lead manager.

The bonds are due in 2028, 2033 and 2038.

The sale will be conducted through the Michigan State Hospital Finance Authority.

Proceeds will be used for health-care facility renovation projects and for the refund of McLaren's series 1994A revenue refunding bonds for Pontiac Osteopathic Hospital, its series 2003A revenue and refunding bonds and 2003B revenue bonds for Mount Clemens General Hospital, its series 2005A revenue and refunding bonds and 2005B revenue bonds for McLaren Health Care, as well as to repay loans to the authority.

Cypress-Fairbanks ISD bonds

Also ahead this week, the Cypress-Fairbanks Independent School District in Texas plans to price its previously announced $258.965 million in series 2008 schoolhouse and refunding bonds on Wednesday, said a calendar of upcoming deals.

The bonds (Aa3//AAA) will be sold on a negotiated basis through lead manager Ramirez & Co.

Proceeds will be used to construct new school buildings, renovate existing facilities, acquire land and refund outstanding obligations for interest savings.

Long Beach district deal

In other deals this week, the Long Beach Unified School District in California expects to sell $155 million in G.O. and G.O. refunding bonds on Thursday, according to a calendar of upcoming sales.

The bonds (//AA-) will be sold on a negotiated basis with Piper Jaffray as the lead manager.

Proceeds will be used for renovations at existing facilities and for the refunding of the district's outstanding bonds for interest savings.

Grand Prairie ISD bonds

Yet another school district sale comes from the Grand Prairie Independent School District in Texas, which plans to price $61.205 million unlimited tax school building bonds this week, a source familiar with the sale said Monday.

The series 2008 bonds could price as early as Tuesday.

The timing depends on "finding a good market when there's not a whole lot of deals competing against it," the source said.

The bonds will be sold as current interest and capital appreciation bonds.

The $60.715 million current interest bonds have serial maturities from 2011 through 2037.

The $490,000 premium capital appreciation bonds are due in 2009 and 2010.

Morgan Keegan & Co. is the senior manager of the negotiated sale.

Proceeds will be used to construct, renovate and equip school facilities.

Scioto County plans deal

Later this week, Scioto County in Ohio plans to sell $150.15 million in series 2008 refunding revenue bonds on Wednesday, according to a calendar.

The bonds (A2) will be sold through lead manager Goldman, Sachs & Co.

The bonds are due from 2010 to 2022, and proceeds will be used to refund $65.675 million in series 2006A and $65.7 million in series 2006B period auction reset revenue bonds and to establish a debt service reserve fund for the Southern Ohio Medical Center.

Arkansas Development Finance

The Arkansas Development Finance Authority expects to price $95 million single-family mortgage revenue bonds on Wednesday, a source told Prospect News.

The $22.63 million series 2008A and $72.37 million series 2008B bonds will have a retail pricing period on Tuesday.

The series 2008A bonds have serial maturities from 2009 through 2017 and a term due 2033. The series 2008B bonds have serial maturities from 2009 through 2018 and terms due 2023, 2028, 2033 and 2038.

Stephens Inc. is the senior manager of the negotiated sale.

Proceeds will be used to purchase mortgage-backed securities and to refund the series 1997C and 1997D-A single-family mortgage revenue bonds; series 1997A-1, 1997B-1, 1998A and 1998B home mortgage revenue bonds and the series 2006W single-family mortgage revenue notes.

Montgomery County to price $250 million

Looking ahead, Montgomery County, Md., intends to price $250 million G.O. bonds in a competitive sale on July 22, a source said Monday.

The series 2008A bonds (//AAA) have serial maturities from 2009 through 2028.

McKennon Shelton & Henn LLP is the county's bond counsel.

Proceeds will be used to redeem commercial paper to provide permanent financing for county capital projects, which include construction, renovations and equipment for libraries, new public schools and fire and police facilities.

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