Texas brings $6.4 billion with 1.61% NIC; Wisconsin prices $302.2 million G.O.s with 4.30% TIC

By Cristal Cody and Sheri Kasprzak

New York, Aug. 19 - New issue action picked up on Tuesday, with several bonds pricing. The activity was led by the State of Texas, which sold $6.4 billion in series 2008 tax and revenue anticipation notes, according to an issuer source.

Elsewhere, the State of Wisconsin brought $302.2 million in general obligation bonds to market.

In the competitive sales Tuesday, which dominated market activity, the response from bidders seemed to be rather good, sellside sources reported.

In the Texas deal, a source there told Prospect News that there was a tremendous response to the sale, both from underwriters bidding on the offering and from investors.

"The response we had for these notes was really phenomenal," said a source at the issuer. "We're obviously very pleased with the results and with the turnout."

The notes (MIG 1//F1+) were sold on a competitive basis with Lehman Brothers as the winning bidder. The net interest cost came in at 1.608%.

The coupon was set at 3%, priced at par. The notes are due Aug. 28, 2009.

Proceeds will be used for general expenses in the state, pending the receipt of taxes and some other revenues.

Wisconsin sells G.O.s

Moving to Wisconsin's G.O. sale, the bonds sold with a 4.302845% true interest cost, a source told Prospect News.

The series 2008C bonds (Aa3/AA/AA-) priced with 4% to 5% coupons to yield 2.15% to 4.75%.

The bonds have serial maturities from 2010 through 2029.

Merrill Lynch & Co. was the winning bidder out of eight bids in the competitive sale.

Proceeds will be used for general state purposes.

Eastern Municipal Water offering

Also priced Tuesday was $140.035 million in series 2008H water and sewer revenue certificates of participation from the Eastern Municipal Water District in California, according to a sellside source.

The COPs (Aa3/AA/AA) were sold through lead manager Citigroup Global markets with Banc of America Securities as the co-manager.

The bonds are due 2024 to 2032 with term bonds due 2033, 2034 and 2035.

The serials have 5% coupons with yields from 4.67% to 5.11%. The 2033 bonds have a 5% coupon to yield 5.11%; the 2034 bonds have a 5% coupon to yield 5.13%; and the 2035 bonds have a 5% coupon to yield 5.13%.

Proceeds will be used for capital improvements to the district's water and sewer system, as well as for a deposit to a debt service reserve fund.

Ocean County, N.J., sells $59.77 million

In other pricing news, Ocean County, N.J., priced $59.77 million in series 2008 general improvement bonds Tuesday, said a sellside source familiar with the deal.

Citigroup Global Markets won the bid for the bonds (Aa1//AA+) with a TIC that came in at 4.092232%.

The bonds are due from 2009 to 2028 with coupons from 3.75% to 4.25%, all priced at par.

There were 10 bidders for the offering, which the sellside source said was quite good.

"We're pleased with the way it turned out," he said.

Proceeds from the offering will be used for capital improvements throughout the county.

Arizona School District prices COPs

Elsewhere, the Arizona School District recently priced $115 million COPs with a 3% coupon to yield 1.63%, according to an official statement.

The series 2008 tax anticipation note financing program certificates (MIG1/SP-1+/) are due July 30, 2009.

The COPs were sold in a negotiated sale managed by Piper Jaffray.

Proceeds will be used for general expenditures during the fiscal year at school districts that include Cave Creek Unified School District No. 93, Chandler Unified School District No. 80, Deer Valley Unified School District No. 97, Gilbert Unified School District No. 41, Higley Unified School District No. 60, Madison Elementary School District No. 69, Pendergast Elementary School District No. 92 and Peoria Unified School District No. 11.

Jackson-Madison hospital deal

The Jackson-Madison County General Hospital, also known as Tennessee Healthcare, planned to sell $298.995 million fixed-rate hospital revenue refunding bonds on Tuesday, but calls to confirm the sale were not immediately returned.

The series 2008 bonds (A1) priced through the city of Jackson, Tenn.

Citigroup Global Markets managed the negotiated sale.

Proceeds will be used to refund $78.3 million from the series 2003A insured auction-rate bonds, $48.7 million from the series 2006A insured auction-rate bonds and $143.6 million of the series 2006B insured variable-rate bonds and to pay $15.3 million to terminate interest rate swaps on the bonds.

Palm Beach sale

Palm Beach County in Florida also expected to price $180 million public improvement revenue bonds on Tuesday.

The series 2008 bonds (Aa1/AA+/AA+) were sold in a negotiated sale led by senior manager Merrill Lynch & Co.

Proceeds will be used to acquire, renovate, construct and equip additional law enforcement facilities, to refinance debt and to make a deposit to a debt service reserve fund.

MEAG to price $148.065 million

Looking ahead, the Municipal Electric Authority of Georgia expects to price $148.065 million in series 2008B Project One subordinated bonds on Aug. 28, a sellsider close to the offering confirmed with Prospect News Tuesday.

The bonds (Aaa/VMIG 1/AAA/A-1/A+) will be sold on a negotiated basis with Goldman, Sachs & Co. as the senior manager.

The variable-rate bonds bear interest at the weekly rate.

Proceeds will be used to refund the authority's series 2008B Project One subordinated bonds revolving credit agreement notes.

Arizona State U Hassayampa sale

In other upcoming deals, McAllister Academic Village LLC plans to sell $146.635 million revenue refunding bonds for Arizona State University Hassayampa Academic Village project on Aug. 26, a sellside source told Prospect News.

The series 2008 bonds (/AA-/) have serial maturities from 2010 through 2045.

RBC Capital Markets will manage the negotiated sale.

Proceeds will be used to refund the series 2005 variable-rate revenue bonds.

Forsyth County to price $119.54 million

Also ahead, Forsyth County in North Carolina expects to price $119.54 million G.O. bonds through a competitive sale on Aug. 26, according to sale notices.

The $80 million series 2008 school bonds and $11.12 million series 2008 public improvement bonds have serial maturities from 2010 through 2027.

The $28.42 million series 2008 G.O. refunding bonds have serial maturities from 2009 through 2016.

DEC Associates is the county's financial adviser for the refunding bonds.

Proceeds will be used for projects that include refunding the 2009 through 2014 serial maturities from the series 1998 G.O. school bonds and the 2009 through 2016 maturities from the series 1999 G.O. school bonds.

Texas's Tarrant County to price bonds

Other new offerings include $112 million series 2008 limited tax bonds from Tarrant County of Texas, according to a preliminary official statement released Tuesday.

The bonds have serial maturities from 2009 through 2028.

JPMorgan is the senior manager of the negotiated sale.

Proceeds will be used to purchase, construct, renovate and maintain streets, roads, highways and bridges; to construct jail facilities, county and state court buildings and to expand the county's medical examiner facilities and crime lab.

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