Indiana Bond Bank prices $436 million notes; Florida Department of Education to sell $200 million

By Cristal Cody and Sheri Kasprzak

New York, June 19 - As new issue pricings tapered off on Thursday, a sellside source indicated that some issuers may be holding back.

"I think some are probably holding off for a while to see what the market's going to do," he said. "Lots of issuers are putting their deals off until things improve some."

Heading up Thursday's light pricing action was a $436 million sale of mid-year funding program notes from the Indiana Bond Bank, a source told Prospect News.

The notes (/SP-1+/), which are due May 28, 2009, priced with a 3% coupon to yield 1.83%.

J.P. Morgan Securities was the senior manager of the negotiated sale.

Proceeds will be used to purchase tax anticipation obligations of state school corporations, counties, cities, libraries and other entities to meet cash flow needs.

Also out of Indiana, Indianapolis was expected to price $286 million notes on Thursday, according to a sale calendar.

The $86 million series 2008A1 and B1 notes are due in September 2008. The $200 million series 2008A2, B2, C and D notes are due in January 2009.

The notes were planned to be sold in negotiated sales managed by City Securities Corp.

Calls for additional information were not returned.

University of Missouri sale

Also on Thursday, the Curators of the University of Missouri priced $100 million in series 2008-2009A capital project notes, a sellside source said.

The notes (MIG1/SP-1+/) priced with a 1.69075% true interest cost with Citigroup Global Markets winning the competitive bid.

The notes are due June 30, 2009 and have a 3% coupon, priced at par.

Proceeds will be used for capital projects at the university.

Florida education bonds

The Florida Department of Education released additional details about the competitive sale of $200 million full faith and credit public education capital outlay bonds.

The series 2006E bonds (//AA+) have serial maturities from 2009 through 2038.

The bonds were authorized by the state in 2006. Squire, Sanders & Dempsey LLP is the state's bond counsel.

Proceeds will be used for capital projects.

Florida prices bonds in competitive sales with an 18-hour notice.

DASNY sales

Looking to upcoming bond sales, the Dormitory of the State of New York plans to price $528.245 million mental health services facilities improvement revenue bonds in five tranches, according to a preliminary official statement.

The sale includes $161.755 million series 2008A, $79.95 million series 2008B, $37.57 million series 2008C, $207.37 million series 2008D and $41.6 million series 2008E bonds.

J.P. Morgan Securities is the senior manager of the negotiated sale.

Proceeds will be used to refund outstanding bonds, to refinance state facilities and to fund facility projects including at the Greater Binghamton Health Center, Bronx Children's Psychiatric Center, Kingsboro Addiction Treatment Center and St. Vincent's Services.

DASNY also plans to price $440 million state personal income tax revenue bonds, according to a preliminary official statement.

The series 2008A bonds (/AAA/AA-) have serial maturities from 2009 through 2028.

M.R. Beal & Co. is the senior manager of the negotiated sale.

Proceeds will finance grants to local school districts for facility projects that exceed existing state school building aid allotments as part of the Expanding our Children's Education and Learning (Excel) program.

Los Angeles County bond sale

Elsewhere, the County of Los Angeles in California plans to remarket $977.6 million in series 2007 tax and revenue anticipation notes on July 8, said a calendar of upcoming deals.

The notes are due June 30, 2009 and will be remarketed competitively.

Proceeds will be used for expenses until taxes and other revenues are received.

New York refunding bonds

The New York State Local Government Assistance Corp. plans to price $588.325 million refunding bonds in two sales in late June, according to Moody's Investor's Service.

The $137.765 million series 2008B-3V and $50.885 million series 2008B-7V variable-rate subordinate lien refunding bonds are expected to price on June 25.

The $52.73 million series 2008B-AV, $52.755 million series 2008B-BV, $52.73 million series 2008B-CV, $52.755 million series 2008B-DV and $188.705 million series 2008B-BV2 senior lien refunding bonds are expected to price on June 26.

The bonds (Aa3/VMIG 1//) will price with an initial weekly interest rate.

Proceeds will be used to refund the authority's series 2003A variable-rate bonds and series 2004A auction-rate bonds.

The state plans to have all of its $4 billion in outstanding auction-rate securities refunded or converted by the end of the year.

Nassau County $180 million

Nassau County, N.Y., intends to price $180 million general obligation and refunding bonds, according to a preliminary official statement.

The sale includes $140 million series 2008C general obligation bonds and $40 million series 2008D general obligation refunding bonds.

The bonds (A2/A+/A+) will be sold in a negotiated sale with J.P. Morgan Securities as senior manager.

Proceeds will be used to fund capital projects, judgments and settlements and to refund certain maturities from the series 1996W, 1997X, 1997V, 1997W, 1997Y, 1998A, 1998B, 1998Y, 1998Z, 1999C and 1999D bonds.

The maturities carry coupons from 4.75% to 5.5%.

Additional information was not available.

Harris County offering

Also ahead, Harris County, Texas, plans to price $77.16 million in series 2008A toll road unlimited tax and subordinate lien revenue refunding bonds, said a preliminary official statement released Thursday.

The bonds will be sold on a negotiated basis with Piper Jaffray & Co. as the lead manager.

The bonds will be due in both serial and term structures.

Proceeds will be used to refund a portion of the county's outstanding series 2003 toll road unlimited tax and subordinate lien revenue bonds and to purchase one or more bond insurance policies.

© 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.