Michigan State Hospital Finance Authority brings $391.47 million; Florida Housing sells $100 million

By Sheri Kasprzak

New York, Nov. 12 - With the bond market back to business after the Veterans Day holiday, pricing action picked up again, led by a rather large deal from the Michigan State Hospital Finance Authority for Trinity Health Credit Group.

The Florida Housing Finance Corp. also brought a deal to the table, selling $100 million in mortgage revenue bonds.

While Wednesday's activity was nothing to sneeze at, Thursday is proving to be the day to price for many issuers, with billions in sales on the calendar. That action will be led by a $659.92 million sale of personal income tax revenue bonds from the Dormitory Authority of the State of New York.

Also on Thursday, the Arizona School Facilities Board is scheduled to price $593 million in certificates of participation following a retail order period on Wednesday.

Meanwhile, in secondary market activity, Wednesday proved to be quieter than normal as munis firmed slightly, a trader noted. But the trader added that a few recently freed-to-trade bonds made some interesting movements.

Moving back to the Michigan State Hospital sale, the authority priced $391.47 million in series 2008C variable-rate refunding revenue bonds with a 0.9% initial rate, said Terry Stanton, spokesman for the authority.

The bonds (Aa2/VMIG 1/AA/A-1+/AA/F1+) are due Dec. 1, 2034, and the rate resets weekly.

Merrill Lynch & Co. was the lead manager for the offering.

The deal is part of a $785 million offering of bonds for Trinity Health Credit Group. The Indiana Finance Authority was also expected to price $393.53 million in series 2008D variable-rate revenue and refunding bonds for Trinity on Wednesday, but calls for the initial rate were not immediately returned.

Proceeds will be used to construct and equip health-care facilities in California, Indiana and Michigan as well as refund existing obligations.

Florida Housing sale

Also on Wednesday, Florida Housing Finance priced $100 million in series 2008-4 homeowner mortgage revenue bonds Wednesday, said Barbara Goltz, the corporation's chief financial officer.

The bonds (Aa1/AA+/AA+) were sold through lead manager J.P. Morgan Securities Inc.

The bonds are due 2010 to 2020 with term bonds due 2023, 2028, 2033 and 2038. The coupons on the serials ranged from 3.5% to 5.625%, all priced at par. The 2023 bonds have a 5.875% coupon, and the 2028 bonds have a 6% coupon. The 2033 bonds have a 6.125% coupon, and the 2038 bonds have a 6.25% coupon. All of the term bonds are also priced at par.

Proceeds will be used for a portion of the corporation's housing loans.

Arizona School deal ahead

As previously mentioned, the Arizona School Facilities Board is slated to price its $593 million in series 2008 COPs Thursday following a retail order period on Wednesday, said Kerry Campbell, spokeswoman for the board.

The COPs (A1/AA-/) will be sold on a negotiated basis with RBC Capital Markets as the senior manager and J.P. Morgan Securities as co-manager.

The COPs are due 2010 to 2023.

Proceeds will be used for the acquisition of leasehold interests in school sites and facilities.

Seattle offering coming up

Moving to the near future, the City of Seattle is expected to price $215.845 million in series 2008 water system improvement and revenue refunding bonds on Nov. 19, said a preliminary official statement released Wednesday.

The bonds (Aa2/AA+/) will be sold on a competitive basis with Seattle-Northwest Securities Corp. as the financial adviser.

The bonds are due 2009 to 2038.

Proceeds will be used for improvements to the city's water system and for refunding existing bonds.

Also on Nov. 19, the Oklahoma Department of Transportation is scheduled to sell $98.26 million in series 2008A grant anticipation notes, said a preliminary official statement.

The notes (Aa3//A+) will be sold on a negotiated basis with J.P. Morgan Securities as the lead manager.

The notes are due 2009 to 2021.

Proceeds from the sale will be used for construction costs associated with qualified federal aid transportation projects.

Indiana Finance deal

Another sale slated to for Nov. 19 comes from the Indiana Finance Authority, which plans to price $94.55 million in series 2008 revenue refunding bonds, according to a preliminary official statement.

The bonds (Aa2/AA+/AA) will be sold through senior manager Morgan Stanley.

The offering is expected to price Nov. 19, with a retail order period on Nov. 18, said Jessica Ewing, spokeswoman for the authority, on Wednesday.

The sale includes $28.83 million in series 2008A revenue refunding bonds, which are due 2009 to 2014, and $13.67 million in series 2008B revenue refunding bonds, which are due 2012. The deal also includes $52.05 million in series 2008C revenue refunding bonds, which are due from 2009 to 2022.

Proceeds from the 2008A sale will be used to refund the authority's series 2000A bonds. The 2008B bonds will be used to refund the authority's series 2000B bonds, and the 2008C bonds will be used to refund the authority's series 2001A bonds. Proceeds from each series will also be used to make interest rate collar termination payments.

North Carolina hospital bonds

Looking to other upcoming deals, the North Carolina Medical Care Commission is planning to sell $272.46 million in health-care facilities revenue refunding bonds Nov. 20 for University Health Systems of East Carolina, said a preliminary official statement.

The sale includes $74.135 million in series 2008C bonds, $82.4 million in series 2008D bonds and $115.925 million in series 2008E bonds.

The bonds (A1/A+/AA-) will be sold on a negotiated basis with Citigroup Global Markets as the lead for the 2008D and 2008E bonds. The lead manager for the 2008C bonds is Edward Jones & Co.

The 2008C bonds are due from 2009 to 2018 with term bonds due 2023, 2026 and 2036. The 2008D bonds are due 2033. The 2008E bonds are due 2036.

The 2008E bonds are comprised of $56.28 million in series 2008E-1 bonds and $59.645 million in series 2008E-2 bonds.

Proceeds will be used to refund the commission's series 2006 bonds and make a deposit to a debt service reserve fund.

Georgia medical center deal

Moving to the end of the month, the Medical Center Hospital Authority in Georgia plans to sell $108.095 million in series 2008 revenue anticipation certificates for the Columbus Regional Healthcare System, said a preliminary official statement.

The bonds (//A-) will be sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The proceeds will be used to redeem a bridge loan issued to purchase Doctors Hospital from HCA Inc. The rest will be used to refund the authority's series 1992B certificates.

Puerto Rico deal in December

Looking to next month, the Puerto Rico Municipal Finance Agency hopes to price $240 million in series 2008A bonds, said a preliminary official statement released Wednesday.

The bonds (Baa3/BBB-/) will be sold on a negotiated basis with Merrill Lynch, Ramirez & Co. and RBC Capital Markets as the lead managers.

The bonds are due 2009 to 2018 with term bonds due 2023, 2028 and 2033.

Proceeds will be used to purchase Puerto Rico general obligation bonds and notes from various municipalities and the Government Development Bank.

WellSpan Health seen at 6.05%

Moving to secondary market action, a trader said municipals in general were trading slightly firmer on Wednesday, following the Veterans Day holiday.

"There's a little movement here and there," he noted. "We've seen a few things trading, but it has been quieter than usual."

The trader said WellSpan Health of Pennsylvania's 6% 2008A revenue bonds were seen trading Wednesday at 6.053%, up slightly from 6.021% earlier this week.

When the bonds were freed to trade Sunday, the bonds were seen trading around 6.032%, the trader said.

The bonds were priced Oct. 29 through the General Authority of Southcentral Pennsylvania, par amount of $200.53 million.

Elsewhere, the Empire State Development Authority of New York's 5.625% series 2008D bonds due 2028 were seen trading at 5.5% Wednesday, and the series 2008D 2012s were seen trading around 2.98%. The 2028 bonds priced Nov. 5 to yield 5.75%, and the 2012s priced to yield 3.87%.

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