Minneapolis to sell $222.5 million variable-rate bonds Tuesday; Harris County Flood District sale ahead

By Cristal Cody and Sheri Kasprzak

New York, Oct. 24 - The week of Oct. 27 may offer more new issues, indicating that the market may have made at least some improvement over the past few weeks, as some sellside sources have recently indicated.

Some sellsiders said earlier in the week of Oct. 20 that investors are interested in the muni market, which is offering enticing yields on even shorter-term bonds. However, the number of issuers may be dwindling, spurred by the discomfort of issuers with cash on hand to sell bonds in a volatile market.

Even so, a new crop of sales is planned for the coming week.

The new sales are led by Minneapolis, which expects to price $222.5 million in variable-rate revenue bonds for Fairview Health Services on Tuesday, according to a source reached Friday.

The $84.375 million series 2008C, $28.125 million series 2008D and $110 million series 2008E bonds are due in 2047.

Citigroup Global Markets will manage the negotiated sale of the series 2008C bonds. RBC Capital Markets will manage the sale of the series 2008D bonds, and Wells Fargo Brokerage Services LLC will manage the series 2008E bonds.

The bonds will price initially with a weekly interest rate.

The proceeds will be used to finance the costs to construct and equip health-care facilities, including a replacement children's hospital at the University of Minnesota Medical Center.

Harris County Flood bonds ahead

Elsewhere in coming sales, the Harris County Flood Control District in Texas plans to sell $160 million in series 2008C contract tax refunding bonds, said a preliminary official statement.

The bonds (Aa1/AAA/) will be sold on a negotiated basis with Citigroup Global Markets and Siebert Brandford Shank & Co. as the senior managers.

The bonds are due 2009 to 2024 with term bonds. The maturities of the term bonds have not been determined.

Proceeds will be used to refund all of the district's outstanding series 2008B contract tax refunding bonds.

Broward education sale

In other upcoming deals, the Broward County Educational Facilities Authority in Florida plans to price $60 million in series 2008A educational facilities revenue bonds for Nova Southeastern University, said a preliminary official statement.

The bonds (/AA/A-1+/) will be sold on a negotiated basis with Banc of America Securities and SunTrust Robinson Humphrey as the senior managers.

The bonds are due April 1, 2038 and will initially bear interest at the daily rate.

Proceeds will be used for the acquisition, construction and equipment of capital projects at the university, including a chiller plant and a dormitory.

Trinity River Authority to price $50.44 million

Also ahead, the Trinity River Authority of Texas plans to price $50.44 million in revenue bonds for the Tarrant County water project, according to a preliminary official statement.

The series 2008 bonds (A1/AA/) have serial maturities from 2011 through 2024 and from 2026 through 2028.

Southwest Securities is the senior manager of the negotiated sale.

Proceeds will be used to finance $42.3 million of the cost of improvements and extension to the surface water treatment plan and distribution system.

In other new offerings, Montgomery County of Ohio intends to price $70 million in revenue bonds for the Miami Valley Hospital, according to a preliminary official statement.

The series 2008A bonds (Aa3//AA-) have serial maturities from 2009 through 2018 and terms due 2022.

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

Proceeds will be used to refund the series 1992B bonds and the series 2003 bonds and to finance capital expenditures.

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