Baylor College of Medicine, Texas, sells $254.691 million; New Jersey plans $1.8 billion TRANs deal

By Sheri Kasprzak

New York, Aug. 27 - A light day of pricing action Wednesday was led by a $254.691 million sale of revenue refunding bonds from the Baylor College of Medicine in Texas.

The day's action was also punctuated by the announcement that the state of New Jersey is cooking up a $1.8 billion sale of tax and revenue anticipation notes for sale in early September.

Looking back at the Baylor sale, the college sold $254.691 million in series 2008 revenue refunding bonds, according to a sellside source familiar with the sale.

The sale included $199.691 million in series 2008D bonds and $55 million in series 2008E bonds.

The 2008D bonds are due from 2009 to 2019 with term bonds due 2023, 2028 and 2032. The 2008E bonds are due 2035.

The 2008D serials have coupons from 3% to 5% with yields from 2.61% to 4.97%. The 2023 bonds have a 5.125% coupon to yield 5.38%. The 2028 bonds have a 5.375% coupon to yield 5.66%, and the 2032 bonds have a 5.625% coupon to yield 5.85%.

The 2008E bonds have a 3.29% coupon, priced at par.

Proceeds will be used to refund the college's outstanding series 1999B and 2005A bonds.

Citigroup Global Markets was the senior manager for the negotiated deal.

New Jersey to bring $1.8 billion

Moving to the rather large offering from New Jersey, the state intends to sell $1.8 billion in series 2009A tax and revenue anticipation notes, according to a preliminary official statement. The competitive sale is slated to occur on Sept. 3.

The bonds are due June 25, 2009.

Proceeds will be used to fund general expenses for the state until taxes and other revenues can be collected.

Louisville Arena Authority, Austin sales

Thursday is gearing up to be another active day for pricings, and the action will be led by the Kentucky Economic Development Finance Authority, which is expected to price $343.767 million in revenue bonds for the Louisville Arena Authority.

The sale includes $284.435 million in series 2008A1 fixed-rate bonds, $29.332 million in series 2008A2 capital appreciation bonds, $15.5 million in series 2008B fixed-rate bonds and $14.5 million in series 2008C fixed-rate bonds.

Goldman, Sachs & Co. is the lead manager.

Proceeds will be used to develop and construct the arena for the University of Louisville men's and women's basketball programs.

Also coming up on Thursday, the city of Austin, Texas, plans to price $113.46 million in series 2008 public improvement bonds, series 2008 certificates of obligation and series 2008 public property finance contractual obligations (Aa1/AAA/AA+).

The bonds and COPs will be sold on a competitive basis, and PFM Group is the financial adviser.

Proceeds will be used to fund capital improvements and to purchase equipment and other property.

Colorado Health sale ahead

A bit farther ahead, the Colorado Health Facilities Authority has announced plans to price $140.245 million in series 2008 retirement community revenue bonds, according to a preliminary official statement.

Ziegler Capital Markets is the senior manager for the negotiated offering.

The bonds are due 2018 and 2043.

Proceeds will be used for construction on the authority's planned Eagle's Trace retirement community, as well as for a deposit to a debt service reserve fund.

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