Colorado sells $215 million education loan TRANs with 1.5398% TIC; Port of Tacoma sells $133 million

By Cristal Cody and Sheri Kasprzak

New York, July 15 - A particularly active day for pricings was led Tuesday by a $215 million offering of education loan tax and revenue anticipation notes from the state of Colorado.

Citigroup Global Markets won the competitive bid with a 1.53978% true interest cost, said a source close to the sale.

"We had a pretty good response," the source said. "We feel the sale went well, considering the market conditions."

RBC Capital Markets was the financial adviser.

The notes (/SP-1+/F1+) are due Aug. 7, 2009 and have a 1.75% coupon, priced at par.

Proceeds will be used for loans to 16 participating districts to alleviate a temporary general fund cash flow deficit.

Among the largest sales of the week was a $1 billion sale of revenue bonds from the MTA Bridges and Tunnels and the Triborough Bridge and Tunnel Authority in New York.

However, calls to the issuer for the details were not returned by press time.

The $650 million series 2008C general revenue bonds and $350 million series 2008D subordinate revenue bonds have serial maturities from 2009 through 2028.

Citigroup Global Markets is the senior manager of the negotiated sale.

Proceeds will be used to finance transit and commuter projects and to refinance outstanding debt.

Port of Tacoma prices $133 million

Also on Tuesday, the Port of Tacoma in Washington priced $133 million variable-rate bonds with a 1.65% initial rate on Tuesday, a source with the issuer told Prospect News.

The initial rate on the series 2008B subordinate lien revenue bonds (Aaa/AAA/) will stay the same for 270 days. At the end of the set period, the bonds will be converted to a weekly interest rate.

The bonds are due Dec. 1, 2039.

Merrill Lynch, Pierce, Fenner & Smith Inc. managed the negotiated sale.

Proceeds will be used to finance the port's capital improvement program.

Laguna Honda prices with 4.78% TIC

In other Tuesday pricings, Laguna Honda Hospital priced $118.13 million general obligation refunding bonds through the City and County of San Francisco with a 4.783% TIC on Tuesday, a source told Prospect News.

The series 2008R3 bonds (Aa3/AA/AA-) priced with 4.6% to 5% coupons to yield 4.28% to 4.8%.

The bonds have serial maturities from 2022 through 2030.

Lehman Brothers was the winning bidder in the competitive sale.

Proceeds will be used to refund the hospital's outstanding series 2005B, 2005C and 2005D variable-rate G.O. bonds.

Midway Independent School District prices with 4.47% TIC

The Midway Independent School District in Texas priced $55.6 million building and refunding bonds with a 4.47% TIC, a source said Tuesday.

The series 2008 bonds (Aaa/AAA/) priced as current interest and premium capital appreciation bonds with 4% to 5% coupons to yield 1.7% to 4.63%.

Some school districts use capital appreciation bonds to meet their tax targets, the source said.

The $53 million current interest bonds have serial maturities from 2009 through 2012 and 2016 through 2026.

The $2.6 million premium capital appreciation bonds have maturities from 2013 through 2015.

Merrill Lynch & Co. was the senior manager of the negotiated sale.

Proceeds will be used to acquire, construct, renovate and equip school buildings and school sites and to refund $4.98 million of the outstanding $6.07 million from the series 1997 refunding bonds.

Wichita, Kansas prices $118.19 million

Wichita, Kan., priced $118.19 million G.O. bonds and notes through several competitive sales on Tuesday, a source with the issuer told Prospect News.

The $94.355 million series 224 G.O. renewal and improvement temporary notes (MIG1) priced with a 1.5068% TIC from winning bidder Lehman Brothers. They priced with a 3% coupon to yield 1.505%.

The $9.815 million series 225 notes (MIG1) priced with a 3.3% TIC from UM Bank, NA. They priced with a 3.3% coupon to yield 3%.

The series 224 and series 225 notes are due Feb. 19, 2009.

The city's $10.05 million series 794 G.O. bonds (Aa2/AA+/) priced with a 3.863% TIC from winning bidder Wachovia Securities. They priced with 3.5% to 4.2% coupons to yield 2% to 4.26%.

The $3.97 million series 794A G.O. bonds (Aa2/AA+/) priced with a 4.148% TIC from Sovereign Securities Corp. They were sold with 3.25% to 4.375% coupons to yield 2% to 4.45%.

The series 794 bonds have serial maturities from 2009 through 2023. The series 794A bonds have serial maturities from 2009 through 2028.

Proceeds will be used for capital improvements in the city and to renew the outstanding principal amounts of the series 222 and series 223 G.O. renewal and improvement temporary notes.

Reading district sells $100 million

Also sold on Tuesday was $100 million in series 2008 G.O. bonds from the Reading School District of Pennsylvania, the issuer said.

The bonds (/A/) were sold on a competitive basis with Robert W. Baird as the winner. The TIC came in at 4.883946%. Concord Public Finance was the financial adviser.

The bonds are due from 2010 to 2034 and from 2036 to 2037 with term bonds due 2035 and 2038.

Coupons range from 3.5% to 5%, but the yields were not immediately available.

Proceeds will be used for the acquisition, construction, reconstruction, expansion, renovation, equipping and furnishing of existing and new school buildings in the district.

Michigan's McLaren Health Care cancels $203.67 million sale

McLaren Health Care cancelled the Tuesday sale of $203.665 million fixed-rate bonds because of market concerns, a source with the issuer said Tuesday.

"It's not going to happen this week," the source said. "The market's not in great shape right now. The hospital is still evaluating its options."

The series 2008A revenue and refunding bonds (A1//AA-) were planned to price through the Michigan State Hospital Finance Authority in a negotiated sale managed by Citigroup Global Markets.

A new pricing date has not been scheduled.

Proceeds will be used for health-care facility renovation projects and to refund the series 1994A revenue refunding bonds for Pontiac Osteopathic Hospital; the series 2003A revenue and refunding bonds and 2003B revenue bonds for Mount Clemens General Hospital and the series 2005A revenue and refunding bonds and series 2005B revenue bonds for McLaren Health Care.

Proceeds also will be used to repay loans to the authority, including $59.545 million from the 1994 No. 1 hospital note by Pontiac and Mount Clemens' $79.735 million 2003 No. 1 note and $82.8 million 2003 No. 3 note.

New York water sale

In other pricing news, the New York City Municipal Water Finance Authority was scheduled to price $333.09 million in series 2009AA water and sewer second general resolution revenue bonds, but calls for the details of the offering were not returned Tuesday.

The bonds were expected to price through lead manager Depfa First Albany and are due from 2013 to 2022.

Proceeds will be used for principal and interest payments on the authority's series 2008CC revenue bonds.

Also on Tuesday, the state of Louisiana was expected to price $200 million series 2008A G.O. variable-rate demand refunding bonds in a competitive sale.

Calls for additional information were not returned by press time.

Elsewhere, the Tucson Unified School District No. 1 in Arizona priced $57 million in series 2008D school improvement bonds. Chryl Lander, spokeswoman for the district, said the pricing terms will be released later this week.

The bonds (A1/A+/) were sold through RBC Capital Markets and are due 2009 and 2012 with a serial structure from 2015 to 2027.

Proceeds will be used for school improvements.

Texas Public Finance to price $225 million

Moving to upcoming offerings, the Texas Public Finance Authority plans to price its previously announced $225 million G.O. and refunding bonds on Wednesday, a source told Prospect News.

The series 2008A bonds (Aa1/AA/AA+) 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 and to finance construction, renovations and land acquisitions for the state criminal justice and public safety departments.

Vermont Student Assistance

Also ahead, the Vermont Student Assistance Corp. expects to price $113.05 million variable-rate bonds on July 22, a source with the issuer said Tuesday.

The senior series 2008A1 education loan revenue bonds are due Dec. 15, 2042.

KeyBanc Capital Markets will manage the negotiated sale.

Proceeds will be used to finance loans and to fund a reserve account and a capitalized interest account.

Marion County Convention and Recreational Authority

Marion County Convention and Recreational Facilities Authority in Indiana plans to price $155.965 million lease rental revenue refunding subordinate bonds, according to a preliminary official statement.

The series 2008 adjustable-rate excise taxes bonds (Aaa/AAA/) are due June 1, 2027.

The bonds are insured by Assured Guaranty Corp.

RBC Capital Markets is the senior manager of the negotiated sale.

Proceeds will be used to refund a portion of the series 1997A revenue subordinate bonds that mature June 1, 2022 and June 1, 2027.

South Dakota Housing Development Authority

In other upcoming deals, the South Dakota Housing Development Authority expects to price $100 million homeownership mortgage bonds on July 22, a source said Tuesday.

The bonds (Aa1/AAA/) also will be sold through retail orders on July 21.

The $18.615 million series 2008D bonds have serial maturities from 2009 through 2019.

The $47.385 million series 2008E bonds are terms due 2023, 2027 and 2038.

The $34 million series 2008F bonds are due 2039.

Citigroup Global Markets is the senior manager of the negotiated sale.

Proceeds will be used to provide funds to make or purchase mortgage loans that are secured by first mortgage liens on single-family residential housing and to make deposits to various funds and accounts.

Milwaukee sewage bonds set

Finally, the Milwaukee Metropolitan Sewerage District intends to price $70 million in series 2008F G.O. sewerage system bonds on July 28, said a preliminary official statement.

The bonds will be sold on a competitive basis with Robert W. Baird and Bagley Financial Corp. as the financial advisers.

The bonds are due from 2009 to 2028.

Proceeds will be used to finance the district's capital budget through 2008.

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