Emory University sells $315 million; New York Transitional Finance Authority prices $482 million

By Cristal Cody and Sheri Kasprzak

New York, June 11 - Another heavy slate of pricings dominated municipals news Wednesday. Of the offerings priced Wednesday, Emory University of Atlanta led the pack, pricing $315 million in fixed- and variable-rate revenue bonds.

A sellside source told Prospect News Wednesday that the $95 million series 2008A bonds, due Sept. 1, 2043, priced with an initial 1.75% long-term interest rate. The $100 million in series 2008B fixed-rate revenue bonds priced with 3.5% to 4% coupons to yield 2.98%. Those bonds are due Sept. 1, 2011.

The $120 million series 2008C revenue bonds due Sept. 1, 2043 priced with 5% coupons to yield 4.5% to 4.73%.

"The one thing that plays on the 5% coupon is a 10-year par call in 2018," the source said.

The true interest costs were not available.

The bonds (Aa2//) were sold through the Private Colleges and Universities Authority.

Citigroup Global Markets was the senior manager of the negotiated sale.

Proceeds will be used to refund the university's $75.408 million outstanding in commercial paper notes and series 1997A revenue bonds and to finance university projects that include a new psychology building, renovation of the Atwood Chemistry Center and expansion of the Rollins School of Public Health and the Yerkes clinical veterinary research building.

New York Transitional bonds

Another large offering came from the New York Transitional Finance Authority, which priced $482 million revenue bonds to yield 2.28% to 4.88% on Wednesday, according to pricing terms released to Prospect News.

The series 2008S-1 fixed-rate building aid bonds (A1/AA-/A+) priced with 3% to 5% coupons.

The TIC was not available.

The bonds have serial maturities from 2010 through 2029 and term bonds in 2034 and 2038.

The authority also sold $218 million in retail orders, bringing the total sale to $700 million.

Goldman, Sachs & Co. managed the negotiated sale.

Proceeds will be used for projects approved by the state.

Scott & White bond sale

Also pricing on Wednesday was $234.225 million in refunding revenue bonds from the Scott & White Memorial Hospital and the Scott, Sherwood and Brindley Foundation in Texas, the issuer said.

The series 2008-1, 2008-2 and 2008-3 variable-rate bonds (Aa3//) also were sold in a retail order, but chief financial officer Dennis Laraway declined to release the pricing details.

The bonds priced through the Tarrant County Cultural Education Facilities Finance Corp.

Scott & White entered into floating-to-fixed-rate swaps with Goldman Sachs Capital Markets and Citibank as counterparties for the 2006 bonds, which will be maintained on the series 2008 bonds to synthetically fix the bonds.

Goldman, Sachs & Co. and Citigroup Global Markets managed the negotiated sale.

Proceeds will be used to refund Scott & White's series 2006A-D auction-rate securities.

Tennessee LDA prices $57 million

The Tennessee Local Development Authority priced $57 million revenue bond anticipation notes with a 1.797% TIC on Wednesday, the issuer told Prospect News.

"It's pretty much on the dollar," Mary-Margaret Collier, director of bond finance, said of the state's pricing expectations. "We projected between 1.75% and 1.8%."

The series 2008A state loans program notes priced with a 3% coupon to yield 1.8%.

The notes are due June 24, 2009.

Banc of America Securities LLC was the winning bidder out of five bids in the competitive sale.

Proceeds will be used for loans to local governments to finance sewage treatment projects and to retire $53.071 million in outstanding series 2007 notes.

Raleigh sells $150 million

Raleigh, N.C., priced $150 million combined enterprise system revenue bonds with 1.6% initial rates on Wednesday, the issuer told Prospect News.

"We thought it was going to be much higher because the market has been going up and down," said Jerrae Williams, treasury manager. "We're glad we don't have insurance."

The $90 million series 2008A and $60 million series 2008B weekly variable-rate demand bonds (Aa1/AAA/AAA) are due in 2035.

The bonds priced through the Raleigh, N.C., Water and Sewer Enterprise.

Citigroup Global Markets managed the negotiated sale of the series 2008A bonds, and Wachovia Securities managed the sale of the 2008B bonds.

Proceeds will be used to finance various improvements to the water and sewer systems.

Nassau County bonds price

In other pricing news Wednesday, Nassau County, N.Y., priced $105 million in series 2008 general obligation revenue anticipation notes, said a source familiar with the sale.

The bonds (MIG1/SP-1/F-1+) include $60 million in series 2008A notes due April 15, 2009, and $45 million in series 2008B notes, due May 15, 2009. The county had expected to sell $50 million in the series 2008B bonds, but the amount was reduced Wednesday.

The 2008A and 2008B bonds both have 3% coupons.

"They're still getting the yields from the winning bidders," said the source when asked if yields were available.

Citigroup Global Markets was the winning bidder for the 2008A bonds with a 1.623831% TIC, and Lehman Brothers was the winning bidder for the 2008B bonds with a 1.671515% TIC.

Proceeds will be used to meet an expected cash-flow deficit.

Methodist Le Bonheur bonds

Also expected to price Wednesday was $270 million in series 2008A and 2008B variable-rate bonds from Methodist Le Bonheur Healthcare. Calls to the issuer for pricing terms were not returned by press time.

The bonds (A2//) were sold on a negotiated basis with Morgan Keegan and JPMorgan as the senior managers.

Proceeds will be used to fund projects and to refinance and convert $70 million in outstanding series 2004C auction-rate bonds, as well as the series 1985C, 1995 and 1998 bonds.

The bonds were sold through the Health, Educational and Housing Facility of Shelby County, Tenn.

Kannapolis bonds delayed

Elsewhere, the City of Kannapolis, N.C., delayed the sale of its $95 million in bonds, said Karen Whichard, spokeswoman for the city.

The bonds, which had been scheduled to price on Wednesday, will now be priced sometime in July, Whichard said.

"We're still working on the offering statement and finalizing details," Whichard said.

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

Pennsylvania IDA bonds

Moving to upcoming bond sales, the Pennsylvania Industrial Development Authority expects to price $141.595 million economic development revenue refunding bonds on June 17, a source said Wednesday.

The series 2008 bonds (A3//) will be sold to refund the authority's outstanding series 2004 auction-rate bonds and various maturities of its series 1994, 1996 and 2002 bonds.

Proceeds also will fund $4.4 million of new loan capacity and pay an $8.1 million swap termination fee for the 2004 bonds.

Lewis & Clark College sale

In other upcoming pricings, Lewis & Clark College of Oregon plans to price $106.4 million in series 2008A revenue bonds on June 20, said a sellside source Wednesday.

The bonds will be sold on a negotiated basis with Prager, Sealy & Co. as the lead manager.

The bonds (Aaa/VMIG1//) will be sold through the Oregon Facilities Authority.

The bonds initially bear interest at the weekly rate but may be converted to the fixed-rate mode.

The bonds are being issued as direct-pay letters of credit.

Conroe IDS' upcoming sale

In other upcoming deals, the Conroe Independent School District in Texas intends to price $97.09 million building and refunding bonds the week of June 16, a source connected to the sale said Wednesday.

The target pricing date is June 17 for the series 2008 bonds, the source said.

The bonds will price in part as current interest and capital appreciation bonds.

The district plans to price $97.075 million as current interest bonds with serial maturities from 2009 through 2035.

The remaining $15,000 will be sold as capital appreciation bonds that mature Feb. 15, 2009.

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

Proceeds will be used for construction, acquisition and equipment for school buildings, new school buses and to refund a portion of the district's outstanding bonds.

Essex offering prices June 17

Essex County in New Jersey intends to price $75 million bond anticipation notes and $18 million G.O. bonds in competitive sales on June 17, according to a preliminary official statement.

The $75 million series 2008 notes (MIG 1//) mature June 25, 2009.

The $9 million series 2008A and $9 million series 2008B county college bonds (A1//) have serial maturities from 2009 through 2023.

Acacia Financial Group is the county's financial adviser.

Proceeds will be used to finance projects, including improvements to Essex County College and Essex County Vocational School.

Houston YMCA sale planned

The YMCA Greater Houston Area in Texas plans to price $200 million variable-rate demand bonds on June 25, according to Moody's Investor's Service.

The series 2008A-E bonds (Baa2//) will price through the Harris County Cultural Education Facilities Finance Corp.

The sale includes $75 million series 2008A, $50 million series 2008B, $25 million series 2008C, $25 million series 2008D and $25 million series 2008E bonds.

J.P. Morgan Securities will manage the negotiated sale.

Proceeds will finance various capital improvement projects, fund a debt service reserve, pay the termination payment on a hedge agreement and refinance the series 1999 and 2002 bonds.

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