Florida plans $615.4 million lottery revenue and education capital outlay bonds

By Cristal Cody and Sheri Kasprzak

New York, Jan. 31 - Florida created a buzz in municipal deals Thursday with details of two upcoming bond sales totaling $615.4 million.

Florida plans to price $315.4 million State Board of Education lottery revenue bonds and $300 million public education capital outlay bonds through two competitive sales in early to mid-February.

"They could sell anytime from next week on," Carol Bagley, with the state's bond finance division, said in an interview.

Bond sales are on an 18-hour notice.

The series 2008A lottery bonds have serial maturities from July 1, 2008 to 2027. Part of the proceeds will be used to finance the costs of constructing and renovating schools in the state and to refund a portion of series 1998B lottery revenue bonds.

The full faith and credit series 2007C capital outlay bonds mature June 1, 2008 through 2037. Proceeds will be used to help pay the cost of capital outlay projects for the state's public education system.

The state also priced $342.1 million series 2008A Department of Transportation bonds (Aa2) last week. Proceeds will be used for a portion of the turnpike's capital improvement program and to refund series 1997A turnpike revenue bonds.

Virginia Housing prices $150 million

The Virginia Housing Development Authority priced $150 million commonwealth mortgage bonds Thursday with a true interest cost of 4.943%.

Banc of America Securities LLC was the successful bidder in the competitive sale for the series 2007 A-AMT bonds (Aaa/AAA), said Pat Carey, the authority's finance director.

The bonds have serial maturities from 2009 through 2021, with a $27.6 million term bond due 2026 and a $46.2 million term bond due 2035.

Coupons for the serials ranged from 2.5% to 4.75%, with a 5.2% coupon in 2026 and a 5 3/8% coupon in 2035. The bonds priced at par, Carey said.

Proceeds will be used to originate single-family mortgage loans.

Irving School District prices $87.02 million

Irving Independent School District in Texas priced $87.02 million unlimited tax school building bonds on Thursday with a 4.477% true interest cost.

"It came in underneath what we came with to the voters and told the board, so we're in pretty good shape," said Deborah Cabrera, assistant superintendent of business and finance for the district.

The bonds (Aa3/AA) have coupons from 3.25% in 2009 to 5% in 2038, and yields from 2% to 4.81%, she said.

Morgan Keegan & Co. is the lead underwriter, with First Southwest Co., Merrill Lynch & Co. and Southwest Securities co-managing the negotiated deal.

Proceeds will be used to renovate schools and replace older technology.

Rockefeller University sells bonds

Elsewhere, the Dormitory Authority of the State of New York had planned to price $103.215 million in series 2008A revenue bonds for Rockefeller University through lead manager Morgan Stanley on Thursday.

The full terms were not immediately available, but the bonds were expected to price with a weekly rate in a serial structure from 2008 to 2039.

Proceeds will be used for renovations to existing campus buildings and for a bridging building linking to existing buildings.

CaroMont to price $118 million floaters

In other bonds set to price Thursday, CaroMont Health was expected to price $118 million in insured floating-rate notes through the North Carolina Medical Commission Thursday, but the terms were not immediately available.

Moody's Investors Service rated the series 2008 notes Aaa.

Merrill Lynch & Co. is lead manager for the negotiated offering.

A source familiar with the notes said Thursday that the terms would not be available until late in the day.

The bonds, according to Moody's, will bear interest at the weekly rate, which pays interest on the first business day of each month beginning March 3, 2008.

Assured Guaranty Corp. is the insurer.

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