Portland to switch auction-rate bonds, California's Presbyterian Intercommunity to bid on auction-rate debt

By Cristal Cody and Sheri Kasprzak

New York, April 9 - Municipal issuers continued to make strides to convert or bid upon their existing auction-rate bonds Wednesday.

Meanwhile, Wednesday proved to be an active day for new issue pricings and the proceeds from some of those sales will refund the issuers' auction-rate bonds - a continuing trend following the collapse of the auction-rate market several weeks ago.

The city of Portland, Ore. said it will convert all of its outstanding 1999D auction-rate bonds on April 22. The conversion notice comes just a week after the city sold $554.12 million in series 2008 revenue bonds in two tranches (A1/AA-/).

The bonds will be converted at par and are due June 1, 2019.

In other auction-rate related news, the Presbyterian Intercommunity Hospital in Whittier, Calif., announced plans Wednesday to bid on $74 million of its series 2007B bonds in Friday's auction, according to a notice released Wednesday.

The bonds priced through the city of Whittier.

UBS Securities LLC is the broker dealer.

Citizens Property Insurance Corp. in Jacksonville, Fla., also expects to bid on $175 million high risk account senior secured bonds in an auction on April 14.

The series 2006A14 bonds had a low bid of 6% and a high bid of 10% in the March 17 auction.

Citizens Property intends to submit bids of at least 3.73%, according to a notice released Wednesday.

The company also submitted a bid in Monday's auction of $100 million series 2006A2 high risk account senior secured auction rate bonds.

The company now holds $79.125 million of the bonds after the auction with the low bid of 3.71%.

The bonds had a high bid of 11%.

The company plans to submit bids for the remainder available amount in the April 14 auction.

Norfolk prices $58.415 million deal

Heading up a busy day for pricings, Norfolk, Va., priced $58.415 million water revenue bonds with a 4.64671% true interest cost, the issuer said Wednesday.

The series 2008 bonds (A1/AA+/AA) priced Tuesday with 3% to 5% coupons to yield 2.25% to 4.77% for the serial maturities, said Steven Demik, director of finance and business services for the city.

"There was a tremendous amount of interest, and we had a lot of bidders on it," Demik said.

The bonds received 11 bids, he said. Wachovia Bank won the bidding in the competitive sale.

The bonds have serial maturities from 2009 through 2029 with term bonds due 2032 and 2038. The 2032 term bond priced with a 4.75% coupon to yield 4.8%. The 2038 term bond priced with a 4.75% coupon to yield 4.84%.

Proceeds will be used to finance improvements to the city's water system.

The city also plans to price about $130 million general obligation bonds in early June, Demik said.

In other pricing news, Cedar Park, Texas, priced $19.74 million general obligation bonds on Wednesday and plans to price $43.995 million taxable certificates of obligation in May, the issuer told Prospect News.

Proceeds from the series 2008 general obligation bonds (A1//) will be used for streets, bridges and recreational facilities.

The pricing terms for the negotiated sale were not available by press time.

First Southwest Co. is the city's financial advisor.

The series 2008 certificates are scheduled to price on May 14, said Joyce Herring, city finance director.

Proceeds from the certificates will be used to construct an event center, which will include up to a 9,000-seat arena for concerts and hockey.

New Jersey bonds price

Elsewhere in Wednesday's pricing news, the state of New Jersey priced $312 million in certificates of participation, James Petrino, the deputy director of public finance for the state treasurer's office, confirmed Wednesday.

Petrino said the full terms would not be available until Thursday.

The bonds (A1/AA-/A+) were sold on a negotiated basis through lead manager UBS Securities and the proceeds will go to New Jersey Transit for the purchase of 27 locomotives, parts and 37 multi-level railcars.

In other sales, the District of Columbia Water & Sewer Authority had been expected to price $310 million in series 2008A public utility subordinated-lien revenue refunding bonds (A1/AA-/AA-), but the issuer said the terms of the sale were not immediately available.

"We're still pricing them now," said the source Wednesday afternoon.

The negotiated sale was being conducted through Bear, Stearns & Co.

Proceeds will refund the authority's series 2004 auction-rate subordinated-lien taxable revenue bonds.

In other news, the Indiana Health and Educational Facilities Authority was set to price $84 million in debt securities (Aa3//AA) for the Sisters of St. Francis Health Services, but the issuer did not return calls for additional details by press time Wednesday.

Merrill Lynch was the senior manager for the negotiated deal.

Proceeds will be used to refund the authority's series 2006D and 2006E auction-rate bonds.

Elsewhere, the Connecticut Housing Finance Authority was expected to price $243.95 million series 2008A housing mortgage program finance bonds (Aaa/AAA/) on Wednesday.

The Orange County Water District in California also was expected to price $119.7 million series 2008A adjustable-rate refunding revenue certificates of participation (Aa2/AAA/F1+) on Wednesday.

The bonds were expected to price with a weekly interest rate.

Roseville, Calif., also was expected to price $165.85 million variable rate demand refunding wastewater revenue bonds on Wednesday.

The $73 million series 2008A bonds and the $92.85 million series 2008B bonds will bear a weekly interest rate.

Morgan Stanley & Co. is the remarketing agent.

The sales could not be confirmed by press time.

Inova bonds to price Thursday

Looking ahead this week, the Inova Health System Foundation expects to price $344.85 million health care revenue refunding bonds on Thursday, the issuer told Prospect News.

The final closing is planned for April 17, said spokesman Che Parker.

The bond sale includes $34.975 million series 2008A1; $34.975 million series 2008A2; $34.85 million series 2008B1; $$34.85 million series 2008B2; $51.3 million series 2008C1; $51.3 million series 2008C2; $51.3 million series 2008C3 and $51.3 million series 2008C4.

The bonds initially will price with a fixed term rate for a long-term interest rate period beginning April 17, 2008 and ending April 19, 2009. The bonds have an initial mandatory tender date of April 20, 2009.

The bonds will price through the Industrial Development Authority of Fairfax County, Va.

The series 2008A1 and A2 bonds mature May 15, 2035. The series 2008B1 and B2 bonds mature May 15, 2026. The remainder of the bonds matures April 15, 2035.

Citigroup Global Markets is managing the negotiated sale.

Proceeds will be used to refund the series 2005 B, D and E bonds.

Two sales set for April 16

Looking a little farther ahead, the Pennsylvania State Turnpike Commission expects to price $253.5 million turnpike subordinate revenue bonds on April 16, a source confirmed Wednesday.

The series 2008 bonds (A2) are being issued to make a payment to the Pennsylvania Department of Transportation to fund certain grants to mass transit agencies and to fund various road and bridge capital projects.

In other upcoming sales, the El Paso County Hospital District in Texas said it will price $157.1 million in series 2008A and 2008B general obligation and general obligation refunding bonds on April 16, a preliminary official statement said Wednesday.

The bonds (/AA-/AA-) include $120.1 million in series 2008A G.O.s, which are due 2013 to 2023 with term bonds due 2032 and 2038. The deal also includes $37 million in series 2008B bonds, the maturities of which have not been determined yet.

UBS Investment Bank is the lead manager for the negotiated offering.

Proceeds from the sale will be used to construct, equip and acquire a children's hospital as well as to refund the district's general obligation bonds.

Children's Healthcare to price $200 million

In other pricing news, Children's Healthcare of Atlanta plans to price $200 million refunding revenue anticipation certificates and bonds.

The sale includes $110 million series 2008B and $40 million series 2008C refunding revenue anticipation certificates and $50 million series 2008B refunding revenue bonds, according to the statement released Tuesday.

The certificates will price through the DeKalb Private Hospital Authority and the bonds will price through the Development Authority of Fulton County.

The bonds and certificates (Aa2/AA/) are due July 1, 2039.

The bonds will bear interest at a weekly interest rate.

Citigroup Global Markets is the senior manager.

Proceeds will be used to refund the hospital's series 2005A and 2005B revenue anticipation certificates and series 2005B revenue bonds.

Finally, Arizona plans to price $239 million certificates of participation, according to a preliminary official statement released Tuesday.

The series 2008A lease payments certificates (Aaa/AAA/) are insured by Financial Security Assurance.

The certificates have serial maturities from 2009 through 2027.

Wachovia Bank is the senior underwriter.

Proceeds will be used to acquire property for the Lewis Prison Complex, finance a new forensic unit at Arizona State Hospital and fund interest on the certificates.

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