Detroit to convert $382.43 million bonds; Orlando-Orange County Expressway sells $499.11 million

By Cristal Cody and Sheri Kasprzak

New York, May 1 - Muni action was heavy to kick off the month of May, led by a new slate of conversions and remarketings.

Leading the action was Detroit, which intends to convert $382.425 million variable-rate water supply system bonds to a fixed-rate and remarket the bonds in May, according to a remarketing circular.

The $190.345 million series 2001C revenue refunding second lien bonds have serial maturities from 2009 through 2029. The $192.08 million series 2005B revenue senior lien bonds have serial maturities from 2010 through 2035.

Siebert Brandford Shank & Co. is the senior remarketing agent.

Calls for additional information were not immediately returned.

Dow Chemical Co. plans to convert and reoffer $165 million environmental facilities revenue bonds, according to a preliminary reoffering statement.

The series 2002A4 bonds will be converted from a term rate to a fixed rate on May 15.

The bonds, due May 15, 2033, priced through the Brazos River Harbor Navigation District of Brazoria County, Texas.

Goldman, Sachs & Co. is the remarketing agent.

Orlando-Orange County bonds price

Heading up Thursday's pricing action, the Orlando-Orange County Expressway Authority in Florida sold $499.105 million in series 2008B revenue refunding bonds on Thursday, the issuer told Prospect News.

The bonds (A1/A/A) have an initial coupon of 2.65%, said Lindsay Hodges with the authority Thursday.

"This is 2 basis points below this week's Sifma index," Hodges noted.

The bonds, which are due July 1, 2040, were sold on a negotiated basis with Bank of America Securities, SunTrust Bank and Wachovia Bank as the underwriters.

Proceeds will be used to construct road and refund existing bonds.

In other pricing news, John Muir Health priced $50.6 million series 2008B bonds variable rate health care revenue bonds on Thursday, a source told Prospect News.

The final pricing terms had not been completed before press time.

The bonds priced through the California Statewide Communities Development Authority.

Proceeds will be used to help refund the $44 million in series 1997B bonds and the $100 million in series 2006B and C bonds.

The San Diego County Water Authority also was underway Thursday with the sale of about $550 million water revenue certificates of participation on Thursday, according to a source.

The series 2008A certificates (Aa3/AA+/AA) have serial maturities from 2009 through 2028 and term bonds due 2033 and 2038.

Final pricing terms are expected to be available on Friday.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

The proceeds will finance the authority's capital improvement program and refund $63.165 million series 1997A water revenue certificates of participation.

Rhode Island authority prices $64 million

The Rhode Island Student Loan Authority priced $64 million fixed-rate student loan program revenue bonds, the issuer said Thursday.

The authority priced $60 million series 2008 senior bonds and $4 million series 2008I subordinate bonds.

The series 2008 bonds (/AAA/AAA) have maturities from 2013 through 2018 and a term bond due June 1, 2028.

The series 2008I term bonds are due Dec. 1, 2028.

Citigroup Global Markets is the senior manager of the negotiated sale. Co-managers are Oppenheimer & Co. and Roosevelt & Cross Inc.

Proceeds will be used to finance education loans through the Rhode Island Family Education Loan Program.

"There was no bond insurance because it's not worth anything these days," said Charles Kelley, executive director of the authority. "We were pleased this was the first private student loan deal since last September and we expect it will help 5,500 to 6,000 students and families this coming fall."

Pricing terms were not immediately available.

Catholic Healthcare West prices bonds

Moving to other bonds priced Thursday, Catholic Healthcare West of California priced $524.95 million in fixed-rate revenue bonds (A2/A/A+) and $90 million in fixed-rate insured bonds, a sell-side source connected to the sale told Prospect News.

The bonds were still being priced Thursday afternoon and the sell-sider said the terms may not be available until Friday.

"We're still tweaking a few things here and there," he said.

The $524.95 million bonds include $226.25 million in series 2008A through 2008E bonds and $298.7 million in series 2008F through 2008K bonds.

Proceeds will be used to retire the healthcare facility's auction-rate bonds.

The $90 million in bonds will be exchanged for the authority's series 2007I and series 2007J auction-rate bonds.

Nebraska Methodist to sell $201.82 million

Nebraska Methodist Health System intends to price $201.82 million refunding and revenue bonds (-/A-/-), according to a preliminary official statement.

The $40.125 million series 2008 bonds will price through the Hospital Authority No. 2 of Douglas County, Neb.

The $161.695 million series 2008 bonds will price through the Hospital Authority No. 3 of Douglas County, Neb.

Citigroup Global Markets is the senior manager of the negotiated sale. Ameritas Investment Corp. is the co-manager.

Proceeds will be used to finance the costs of an office, women's hospital and parking projects and to refund a portion of refunded bonds.

Additional information was not available.

CareGroup Inc. plans to price $538.455 million revenue and refunding bonds on May 14, according to a release from Moody's Investors Service.

The series 2008 bonds (A3) will price through the Massachusetts Health & Educational Facilities Authority.

Proceeds will be used to provide $150 million of new money for capital projects at the system's four hospitals. The proceeds also will be used to refund the $61.7 million series 1992G2; $4 million series 1996H1; $9.2 million series 1996H2; $3.8 million series 1993F; $35 million series 1998B1; $40 million series 1998B2 bonds; $68.575 million series 2004C1; $69.5 million series 2004C2 and $49.05 million series 2004D bonds.

Citigroup Global Markets is the senior manager.

Port Authority bonds set for May 7

Moving to upcoming sales, the Port Authority of New York and New Jersey plans to price $400 million in series 152 consolidated bonds on May 7, a preliminary official statement said Thursday.

The bonds (A1/AA-/AA-) will be sold competitive and are due in a serial structure from 2018 to 2037 with a term bond due 2038.

Proceeds from the sale will be used for capital projects for the Port Authority.

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