Washington sells $823.09 million in G.O.s; Sacramento prices $440 million in TRANs

By Cristal Cody and Sheri Kasprzak

New York, July 9 - Wednesday's heavy pricing activity was led by an $823.09 million sale of general obligation bonds from the state of Washington.

Meanwhile, several large new offerings were announced, led by a $625 million sale of bonds from the Florida Hurricane Catastrophe Fund Finance Corp. The state of Colorado is planning to sell $215 million in education loan program bonds.

The Washington bonds priced with 4.15% to 4.56% true interest costs, a source told Prospect News.

The $492.505 million series 2009A various purpose G.O. bonds priced with a 4.559% TIC from winning bidder Merrill Lynch & Co.

The $260 million series 2009B motor vehicle fuel tax G.O. bonds priced with a 4.512% TIC from winning bidder Lehman Brothers.

The $70.585 million series 2009T taxable bonds priced with a 4.147% TIC from winning bidder Citigroup Global Markets.

The bonds (/AA+/AA) were sold with 4.5% to 4.6% interest rates.

The series 2009A and 2009B bonds have serial maturities from 2009 through 2033.

The series 2009T bonds have maturities from 2009 through 2014.

Proceeds will be used to fund capital projects, multimodal transportation and public school skill centers.

Sacramento prices $440 million

Elsewhere, Sacramento County in California reported details of its Tuesday sale of $440 million tax and revenue anticipation notes with 1.54% to 1.61% net interest costs, the issuer said Wednesday.

The series 2008A notes (MIG 1/SP-1+/) were sold in two subseries in competitive sales with 31 bids, said Chris Marx, county debt officer.

"So it was healthy and we did well," she said.

JPMorgan was the winning bidder on $415 million of the notes with a 1.612% net interest cost.

The notes priced with a 2.5% coupon and a 1.59% reoffering yield.

Morgan Stanley was the winning bidder on $25 million of the notes with a 1.544% net interest cost.

The notes, which are due Aug. 7, 2009, priced with a 2.75% coupon and a 1.5% reoffering yield.

Proceeds will be used to fund the county's cash flow needs for fiscal year 2008/2009.

Pasadena prices with 4.73% TIC

Pasadena, Calif., priced $71.45 million refunding certificates of participation with a 4.73% TIC on Wednesday, a sellside source told Prospect News.

The series 2008C COPs (/AA+/AA) priced with 4% to 5% coupons to yield 1.6% to 4.97%.

The COPs have serial maturities from 2009 through 2029 and terms due 2033 and 2038.

De La Rosa & Co. was the senior manager of the negotiated sale. Wedbush Morgan Securities was the co-manager.

Proceeds will be used to refund the city's series 2003 variable-rate demand COPs.

Oakland brings $70 million

In other pricing news Wednesday, the city of Oakland, Calif., sold $70 million in series 2008A tax and revenue anticipation notes, said a source at the issuer.

The bonds (MIG 1/SP-1+/F1+) were sold on a competitive basis with Citigroup Global Markets as the winner with a 1.552% TIC.

The bonds, due July 17, 2009, have a 3% coupon and priced at par.

Proceeds will be used for anticipated mid-year cash flow needs and the prepayment of the city's annual contribution to the California Public Employees Retirement System for fiscal years 2008 to 2009.

The city had also planned to price $85 million in series 2008B bonds on a negotiated basis with JPMorgan as the senior manager. The full terms on the 2008B bonds were not available by press time.

Alexandria, Va., prices $63 million

Alexandria, Va., priced $63 million G.O. bonds (Aaa/AAA/) in competitive sales on Wednesday, a source told Prospect News.

The $58 million series 2008A tax-exempt bonds priced with a 3.994% TIC from winning bidder Robert W. Baird & Co.

The bonds priced with 3.375% to 4.375% coupons to yield 2.21% to 4.45%.

The bonds have serial maturities from 2009 through 2028.

The $5 million series 2008B taxable bonds priced with a 5.359% TIC from winning bidder Stifel Nicolaus & Co.

The bonds priced with 4.5% to 5.6% coupons to yield 3.25% to 5.6%.

The bonds have serial maturities from 2009 through 2018 and terms due 2023 and 2028.

Proceeds will be used to finance capital improvement projects and public housing in the city.

Jackson district sells $114 million

Also on Wednesday, the Jackson Public School District in Mississippi priced $114 million special obligation bonds, school finance director David Setzer told Prospect News.

The series 2008 bonds (A1//) were sold through the Mississippi Development Bank. The bonds, which are insured by Financial Security Assurance, have serial maturities from 2009 through 2028.

Final pricing terms were not immediately available.

Rice Financial Products Co. was the senior manager of the negotiated sale.

Proceeds will be used to finance school replacement facilities and renovations.

Port of Tacoma pushes back sale

The Port of Tacoma in Washington expects to price its previously announced $133 million variable-rate bonds on Tuesday, a source with the issuer said Wednesday.

The series 2008B subordinate lien revenue bonds (Aaa) were expected to price on Wednesday. The sale was delayed to allow investors additional time because of the holiday last week, the source said.

The bonds will price with an initial interest rate for a 270-day period. At the end of the set period, the bonds will be converted to a weekly interest rate.

Merrill Lynch, Pierce, Fenner & Smith Inc. will manage the negotiated sale.

Proceeds will be used to finance the port's capital improvement program.

Florida hurricane bonds set

Heading up coming sales, Florida Hurricane Catastrophe Fund Finance expects to price $625 million in series 2008A revenue bonds, said a sellside source close to the deal.

The bonds (Aa3//AA-) will be sold on a competitive basis on Monday, the source said.

Proceeds will be used to reimburse insurance companies for additional losses during the 2005 hurricane season.

Also coming up, Colorado intends to sell $215 million in series 2008A education loan program tax and revenue anticipation notes on Tuesday, said a preliminary official statement.

The notes, which are due Aug. 7, 2009, will be sold on a competitive basis with RBC Capital Markets as the financial adviser.

Proceeds will be used to make program loans to 16 participating school districts to alleviate actual temporary general fund cash flow deficits.

Crowley Independent School District

Coming up, Crowley Independent School District in Texas plans to price $80 million building bonds on July 17, a source said Wednesday.

The series 2008 bonds will be sold as current interest and capital appreciation bonds.

The $77.99 million current interest bonds have serial maturities from 2014 through 2039.

The $2.01 million capital appreciation bonds have maturities on Aug. 29, 2008 and Aug. 1, 2010 through Aug. 1, 2013.

First Southwest Co. is the senior manager of the negotiated sale.

Proceeds will be used to construct, renovate and equip school facilities.

Delaware River Port Authority

Looking ahead, the Delaware River Port Authority in Pennsylvania expects to price $358 million variable-rate revenue refunding bonds the week of July 21, a source said Wednesday.

The final pricing date has not been selected.

The series 2008A and 2008B bonds (A3) will price initially in a weekly mode and will be hedged by a swap agreement.

Proceeds will refund the authority's outstanding series 2007 auction-rate revenue bonds.

Minnesota housing sale planned

Also ahead, the Minnesota Housing Finance Agency plans to sell $99.28 million in residential housing finance bonds, said a preliminary official statement.

The sale includes $25.09 million in series 2008A bonds, $34.19 million in series 2008B bonds and $40 million in series 2008C bonds.

The bonds will be sold on a negotiated basis with RBC Capital Markets and Piper Jaffray as the underwriters.

Proceeds will be used to purchase housing program loans and to reimburse such funds.

© 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.