Texas Permanent University Fund brings $400.91 million; NYC Transitional Finance sells $400 million

By Cristal Cody and Sheri Kasprzak

New York, Oct. 30 - Thursday marked another heavy day for pricing action as issuers who had put offerings on the back burner finally felt confident enough to price.

Among the offerings was a variable-rate sale from Texas Permanent University Fund. The offering is one of a few variable-rate bonds offered over the past few weeks as some sellside sources have said this market is starting to make a comeback.

"We have seen some variable-rate things here and there," said one sellside source Thursday when asked about the prevalence of variable-rate offerings.

"The ones I have seen have done pretty well."

This echoes the sentiment of another sellsider reached earlier in the week, who said variable-rate bonds are doing well, even if the market hasn't fully stabilized.

Looking to that Texas Permanent University Fund sale, the $400.905 million in series 2008A variable-rate permanent university fund bonds, which priced through the University of Texas System, were sold through lead manager Morgan Stanley.

The bonds (/AAA/A-1+/F1+) are due 2037 and 2038 and have an initial rate of 1.1%. The rate resets weekly, said Terry Hull, assistant vice chancellor of finance for the university system.

Proceeds will be used to refund the fund's flexible-rate notes.

NYC Transitional Finance sale

Moving to other pricing action from Thursday, the New York City Transitional Finance Agency priced $400 million in series 2008 fixed-rate building aid revenue bonds, agency spokesman Raymond Orlando said Thursday.

The bonds (A1/AA-/A+) were sold on a negotiated basis with Merrill Lynch, Citigroup Global Markets and Goldman, Sachs & Co. as the senior managers.

The bonds are due from 2010 to 2028 with a term bond due 2036.

The serials have coupons from 4% to 5.5% with yields from 3.01% to 5.75%. The 2036 bonds have a 6% coupon, priced at par.

The bonds also feature an optional call in 2018 at par.

Proceeds will be used for improvements to the city's educational facilities.

Sonoma County sells $115 million

In other news, Sonoma County in California priced $115 million in series 2008-09 tax and revenue anticipation notes Thursday, said a pricing sheet released by a sellside source.

The notes (/SP-1+/) were sold on a competitive basis with Morgan Stanley winning the bid. The true interest cost came in at 1.34080%. KNN Public Finance was the financial adviser.

The notes are due Oct. 29, 2009 and have a 3% coupon, priced at par.

Proceeds will be used for capital expenditures incurred before the collection of taxes and revenues.

California Public Works bonds

The Public Works Board of the State of California sold $163.3 million in lease revenue bonds on Thursday, but pricing details were not immediately available.

The sale includes series 2008H bonds for the Department of Developmental Services, series 2008I bonds for the Trustees of the California State University and series 2008J bonds for the Department of Mental Health.

The Clark County Water Reclamation District in Nevada also was expected to sell $100 million in series 2008 general obligation bonds through a competitive sale on Thursday, but the sale could not be immediately confirmed.

The water reclamation bonds (Aa2/AAA/) have serial maturities from 2013 through 2038.

Hobbs, Ong & Associates and Public Financial Management are the financial advisers.

The proceeds will be used to construct, reconstruct, improve and extend the district's sanitary sewer system.

Christus Health to sell $328.29 million

Moving to upcoming offerings, Christus Health in Texas and Louisiana is expected to price $328.285 million in revenue refunding bonds through the Tarrant County Cultural Education Facilities Finance Corp. in Texas and the Louisiana Public Facilities Authority.

The Tarrant County corporation plans to price $283.8 million in series 2008A revenue refunding bonds, and the Louisiana authority will price $44.485 million in series 2008B revenue refunding bonds.

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

The maturities have not been set at this time.

Proceeds will be used to refund existing Texas and Louisiana bond issued for Christus Health and to make a deposit to a debt service reserve fund.

Catholic Health's $300 million sale

Looking ahead, Catholic Health Initiatives plans to price $300 million in revenue bonds (Aa2/AA/AA) in Colorado, Ohio and Tennessee, according to a preliminary official statement.

The sale includes $210 million series 2008D revenue bonds through the Colorado Health Facilities Authority, $65 million series 2008D revenue bonds through Montgomery County, Ohio, and $25 million series 2008D revenue bonds through the Health, Educational and Housing Facility Board of the City of Chattanooga, Tenn.

The Colorado bonds have serial maturities from 2014 through 2018 and terms due in 2022, 2028 and 2034.

The Ohio and Tennessee bonds have serial maturities from 2009 through 2018 and terms due in 2022, 2028 and 2034.

JPMorgan is the senior manager of the negotiated sale.

Proceeds will be used to finance or refinance capital improvement and equipment acquisitions at Catholic Health facilities in Colorado, Iowa, Nebraska, Minnesota, New Jersey, Oregon, Ohio and Tennessee.

Harris County Flood Control sale ahead

Also in new offerings, the Harris County Flood Control District in Texas intends to price $160 million in refunding bonds the week of Nov. 10, according to a sale calendar.

The series 2008C contract tax refunding bonds (Aa1/AAA/) have serial maturities from 2009 through 2024.

The bonds will be sold through a negotiated sale led by senior managers Citigroup Global Markets and Siebert Brandford Shank & Co.

The proceeds will be used to refund the district's series 2008B contract tax refunding bonds.

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