Pricings stall ahead of holiday weekend; Jacksonville, Fla., prices $134.57 million bonds

By Cristal Cody and Sheri Kasprzak

New York, June 30 - New pricings will taper off this week, said market insiders, because the week is shortened by the July 4 holiday on Friday.

"It's a shorter week, so some issuers are holding off," one sellside source said. "The following week is going to be pretty busy. A lot of issuers are getting back into the market then after the holiday."

Monday saw some light pricing activity, led by a $134.57 million offering of variable-rate revenue bonds from Jacksonville, Fla.

The bonds, said a source at the issuer, priced with a 1.45% initial weekly interest rate.

"They really wanted our name today for some reason. Apparently there were a couple big buyers out there," the source said.

The $67.285 million series 2008A (Aaa//AAA) and $67.285 million 2008B capital projects bonds (Aaa//AA) have serial maturities from Oct. 1, 2008 through Oct. 1, 2024.

Banc of America Securities LLC was the senior manager of the negotiated sale.

Proceeds will be used to refund the city's outstanding series 1997-1, 1997-2, 1997-3 and 2002-1 variable-rate capital projects revenue bonds.

Nevada Higher Education prices bonds

Also on Monday, the Nevada System of Higher Education priced $60.135 million universities revenue bonds with a 4.88% true interest cost, a source told Prospect News.

The series 2008A bonds (Aa3/AA-/) priced with 3% to 5% coupons to yield 2.1% to 5.06%.

The bonds have serial maturities from 2009 through 2031 and a term due 2038.

Piper Jaffray & Co. was the winning bidder in the competitive sale.

Proceeds will be used to fund the development of a molecular medicine center for the University of Nevada School of Medicine.

FirstEnergy prices $241.26 million

In other pricing news, FirstEnergy Generation Corp. priced $241.26 million pollution control revenue refunding bonds through the Ohio Air Quality Development Authority, a source said Monday.

The $141.26 million series 2008A bonds priced with a 1.55% initial rate.

The $100 million series 2008B bonds priced with a 1.8% initial rate.

The bonds (Aaa/AAA/) priced initially with a daily interest rate.

KeyBanc Capital Markets Inc. managed the negotiated sale of the series 2008A bonds, and Banc of America Securities LLC managed the sale of the series 2008B bonds.

Proceeds will be used to refund auction-rate securities.

Huntsville Health Care Authority prices notes

Also, Huntsville Health Care Authority in Alabama priced $150 million commercial paper notes on Monday, a sellside source told Prospect News.

The final terms on the series 2008 variable-rate notes (P-1//) are expected to be available on Tuesday.

The bonds were sold in a negotiated sale managed by Merrill Lynch & Co.

Proceeds will be used to fund capital projects at Huntsville Hospital and to refund $65.7 million from the series 1997A bonds and $21.7 million from the series 2002A bonds.

Also on Monday, the Dormitory Authority of the State of New York was scheduled to price $518.365 million in series 2008 mental health services facilities improvement revenue bonds (/AA-/A+). Calls to the issuer for pricing terms were not immediately returned.

The bonds were sold on a negotiated basis with JPMorgan and Lehman Brothers as the senior managers.

The bonds are due 2009 to 2028 with term bonds due 2033 and 2038.

Proceeds will be used to refund the authority's outstanding bonds.

Texas PFA to sell bonds

Moving to upcoming sales, the Texas Public Finance Authority tentatively plans to price $225 million general obligation and refunding bonds the week of July 16, the issuer said Monday.

The sale date for the series 2008A bonds (Aa1/AA/AA+) will depend on market conditions, said Kim Edwards, executive director.

"The market's moved away the last few days and weeks, so we're waiting for rates to improve before we price," she said.

The bonds have serial maturities from Oct. 1, 2008 through Oct. 1, 2028.

Piper Jaffray & Co. is the senior manager of the negotiated sale.

Proceeds will be used to refund the 2009 through 2015 maturities from the series 1998B G.O. bonds, which have call dates on Oct. 1, 2008 and sold with 4.5% to 5.125% interest rates.

Proceeds also will be used to finance land acquisitions, construction and renovations for the state criminal justice and public safety departments.

Portland to sell $67 million

Coming up this week, the City of Portland in Oregon plans to price $67.085 million in redevelopment and refunding revenue bonds on Tuesday, according to a calendar of upcoming sales.

The bonds (Aa3-//) will be sold on a negotiated basis with Banc of America Securities as the lead manager.

The sale includes $35.215 million in series 2008A South Park Blocks urban renewal and redevelopment bonds and $31.87 million in series 2008B South Park Blocks urban renewal and redevelopment refunding bonds.

The series 2008A bonds are due from 2009 to 2019, and the series 2008B bonds are due 2019 to 2024.

Proceeds from the 2008A bonds will be used to finance capital projects in the South Park Blocks urban renewal area and to fund the 2008A bond reserve subaccount. The 2008B bonds will be used to finance capital projects, refund all or a portion of the series 2000A South Park Blocks urban renewal and redevelopment bonds and to fund the series 2008B bond reserve subaccount.

M-S-R bond sale planned

Looking a little further ahead, the M-S-R Public Power Agency in California intends to price $123.585 million in series 2008L San Juan project subordinate-lien revenue bonds on July 8, said a preliminary official statement.

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

The bonds are due from 2009 to 2022.

Proceeds will be used to refund the agency's outstanding series 1995B, 1997E and 2003I revenue bonds, as well as to pay a portion of the costs of the San Juan project, an agreement between M-S-R and Public Service Co. of New Mexico for ownership interest in the San Juan Generating Station.

Coming up on July 7, Jackson Public Schools expects to price $114 million special obligation bonds through the Mississippi Development Bank, school finance director David Setzer said Monday.

The series 2008 bonds (A1//) will be used to fund replacement school facilities and renovations throughout the district.

Detroit's $130 million sales

In other upcoming deals, the City of Detroit plans to price $130 million in tax anticipation notes and revenue anticipation notes, said a preliminary official statement.

The sale includes $90.815 million in series 2008 tax anticipation notes and $39.185 million in series 2008 revenue anticipation notes.

The TANs (MIG1//) are due March 31, 2009 and will be sold on a negotiated basis with Loop Capital Markets and JPMorgan as the lead managers.

Proceeds from the TANs will be used to pay for general expenses of the city until taxes can be collected.

The RANs (MIG1//) are also due March 31, 2009 and will be sold through lead managers Loop Capital Markets and JPMorgan.

Proceeds will be used to pay for expenses until revenues can be collected.

Port of Seattle bonds

The Port of Seattle intends to price $379.716 million customer facility charge revenue bonds for a rental car facility project, according to a preliminary official statement.

The sale includes $19.415 million series 2008A current interest bonds, $286.775 million series 2008B-1 current interest taxable bonds and $73.526 million series 2008B-2 taxable capital appreciation bonds.

The series 2008A bonds are due Dec. 1, 2023.

The series 2008B-1 bonds have serial maturities from 2011 through 2021 and a term due 2027.

The series 2008B-2 bonds have serial maturities from 2027 through 2040.

The bonds (A2/A-/) will be sold in a negotiated sale by senior manager Lehman Brothers.

Proceeds will be used to pay a portion of the development costs for a consolidated rental car facility and a bus maintenance facility and to make a deposit to the rental car facility account.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.