Pricings abound even as one issuer postpones bond sale due to market conditions

By Cristal Cody and Sheri Kasprzak

New York, April 22 - Despite the fact that at least one issuer has put off selling bonds this week because of what it saw as an adverse market, pricings generally continued unabated Tuesday.

The University of Washington had been expected to price $92.135 million in series 2008 general revenue refunding bonds (Aa1/AA+/), but the sale was postponed indefinitely, a sell-side source connected to the deal told Prospect News.

The bond sale was put off because of market conditions, said the source close to the deal.

"They're just not comfortable with the way the market looks right now," said the source.

"They haven't set a date for the pricing yet."

The bonds were to have been due 2008 to 2036 and the proceeds would have been used to refund a portion of the university's series 1999 housing and dining system revenue refunding bonds, its series 2000 department intercollegiate athletics revenue bonds and series 2004A and 2004B general revenue bonds.

Lehman Brothers and Merrill Lynch were the lead managers for the deal.

Moving to Tuesday's pricing action, Miami-Dade County in Florida priced $102.565 million in series 2008A general obligation bonds on Tuesday, a source at the issuer confirmed with Prospect News.

Merrill Lynch won the competitive sale with a true interest cost of 4.747114%.

The bonds (Aa3/AA-/) are due from 2009 to 2038. The coupons range from 4% to 5%, all priced at par, according to a term sheet released Tuesday.

Public Financial Management was the financial advisor.

The proceeds from the sale will be used to fund a tunnel project to increase access to the Port of Miami.

Illinois schools beats comparables

Elsewhere in pricing news, the Community Unit School District No. 308 in Illinois priced $79.988 million general obligation capital appreciation school bonds with a 5.07% true interest cost, the issuer said Tuesday.

The series 2008 bonds (A1//) priced Monday with 5.241% coupons to yield 4.71% in 2020 to 5.23% in 2028, said Kristopher Monn, assistant superintendent for finance.

"The spreads ranged from 83 to 85 basis points above the MMD," he said. "The most recent comparables we saw were up in the 95s, so we were quite pleased."

The bonds are insured by Financial Security Assurance.

Raymond James managed the negotiated sale.

Proceeds will be used for renovations and to build new schools in the district in Kendall, Kane and Will counties.

The district may do a refunding this year if rates continue to fall, Monn said.

"But I can't imagine them getting much lower than we're seeing these days," he said.

Clark County bonds price

Clark County in Nevada priced $70 million local improvement bonds with a 4.7% true interest cost on Tuesday, the county's financial advisor told Prospect News.

The series 2008 Special Improvement District No. 112 bonds (Aa1/AA+/) priced with 4% to 5% coupons to yield 1.7% to 4.895%, said Kathy Ong, director of Hobbs, Ong & Associates.

Yields came in a "little less, so we're very pleased," she said.

The bonds have serial maturities from Aug. 1, 2008 through Aug. 1, 2037.

Merrill Lynch & Co. was the successful bidder in the competitive sale.

"There were five bidders," Ong said. "We felt demand was good."

Proceeds will be used to finance the underground conversion of electric power lines along Flamingo Road and to fund a reserve fund.

In other pricing news, the Water Infrastructure Finance Authority of Arizona priced $238.71 million water quality revenue bonds with 3% to 5% coupons, according to terms released Tuesday.

The series 2008A bonds (Aaa/AAA/AAA) priced to yield 1.9% to 4.38% from 2009 through 2028.

RBC Capital Markets and Stone & Youngberg were the senior managers of the negotiated sale.

Proceeds will be used to fund loans made by the authority and to reimburse the authority for previous loans and to deposit the reserve account.

Kern County sells $121 million

Elsewhere, the Kern County Water Agency in California priced $121 million bonds with 3% to 5% coupons on Tuesday, the issuer said in an interview.

The series 2008A and B water revenue certificates of participation (A1/A/) are due 2009 to 2028 with term bonds due 2033 and 2038.

"We're still waiting on the final pricing terms. The yields are still being determined, said Don Leonard, controller.

Citigroup Global Markets managed the negotiated sale.

Proceeds will be used to expand the agency's water purification plant and related facilities.

The College of the Holy Cross priced $45 million series 2008A floating-rate revenue refunding bonds on Tuesday, a source confirmed.

Pricing terms were not immediately available.

The bonds (Aa3//) priced through the Massachusetts Health and Educational Facilities Authority.

Banc of America Securities LLC managed the negotiated sale.

Proceeds will be used to refund the college's series 2007A auction-rate bonds.

In other pricing news, the state of Ohio priced $140 million in series L general obligation highway capital improvement bonds Tuesday. Kim Kowalski of the state treasurer's office said the terms of the sale were not immediately available.

The bonds (Aa1/AAA/AA+) were sold on a negotiated basis through lead manager Merrill Lynch. The bonds are due 2009 to 2018.

Proceeds will be used for highway capital improvement projects.

California bonds set to price

Looking ahead, the state of California has several offerings coming up, including a $61.915 million offering of lease revenue bonds from the California Infrastructure and Economic Development Bank, a source with the state told Prospect News. The bonds are set to price Thursday.

The series 2008 Oakland Unified School District state school fund apportionment lease revenue bonds (A3/A/A-) have serial maturities from Aug. 15, 2008 through Aug. 15, 2023.

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

Proceeds will be used to refund the Oakland Unified School District series 2005C lease revenue bonds.

The California Department of Water Resources expects to price $295 million power supply revenue bonds on April 30, a source with the state said Tuesday.

A preliminary official statement should be released later this week on the series 2008K bonds, the source told Prospect News.

The Irvine Ranch Water District in California is expected to price $60 million series 2008A and $100 million series 2008B bonds on Thursday, according to a release from Moody's Investors Service.

The series 2008A and B consolidated refunding bonds (Aa1/VMIG 1) will price initially with a daily rate.

Lehman Brothers is the underwriter and remarketing agent.

Kentucky to sell bonds

In other upcoming sales, the Kentucky State Property and Buildings Commission intends to price $297.785 million in project 89 revenue bonds, the state treasurer's office confirmed Tuesday.

The bonds (Aa3/A+/AA-) will be sold on April 29.

The bonds will be sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The commission intends to use the proceeds to finance various commonwealth capital projects and to refund previously issued state debt through the open market purchase of outstanding Kentucky Asset/Liability Commission variable-rate notes.

Also coming up, the State of Oregon's Housing and Community Services Department plans to price $105 million in series 2008 mortgage revenue bonds in May, a preliminary official statement said Tuesday.

A source at the state treasurer's office said the exact pricing date has not been determined.

The sale includes $11.79 million in series 2008D non-AMT bonds, $58.21 million in series 2008E AMT bonds and $35 million in series 2008F variable-rate AMT bonds.

The bonds will be sold on a negotiated basis. The sole manager for the series 2008F bonds is Bear, Stearns & Co. The other underwriters are Merrill Lynch, Banc of America Securities, Citigroup Global Markets, Edward Jones and Morgan Stanley.

The series 2008D bonds are due 2009 and from 2020 to 2023. The series 2008E bonds are due 2010 to 2019 with term bonds due 2027 and 2039. The series 2008F bonds are due 2039.

Proceeds will be used to refund a portion of outstanding bonds and to make a deposit to the state's debt reserve 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.