Cornell University leads pricings with oversubscribed $130 million sale; JEA sells $125 million

By Cristal Cody and Sheri Kasprzak

New York, April 10 - Heading up the flurry of municipal pricings Thursday was a $130 million offering of revenue bonds from Cornell University. The bonds priced at a 0.55% initial interest rate on Thursday, the issuer told Prospect News.

The bonds (Aa1/AA+/) priced with a variable daily interest rate through the Dormitory Authority of New York, said Carolann Saggese, director of debt for the university.

"We had orders of over $800 million that came in," she said. "We were very lucky on the rate. It seemed like a lot of money markets were looking for strong rated bonds with no underlying insurance."

The $65 million series 2008B and $65 million series 2008C bonds are due July 1, 2037.

Goldman, Sachs & Co. managed the series 2008B bonds, and JPMorgan managed the series 2008C bonds.

Proceeds will be used to refinance the university's series 1998 commercial paper notes.

The university also completed the reoffering of $90.15 million auction-rate bonds as weekly variable-rate demand bonds and option bonds on Thursday, Saggese said.

The $44.05 million series 2004A bonds were reoffered Tuesday, and the $46.1 million series 2004B bonds were reoffered on Thursday.

The bonds are due July 1, 2033.

Morgan Stanley is the reoffering agent.

JEA bonds price

JEA utility company in Florida also priced $125 million St. John's River Power Park System revenue bonds on Thursday, the issuer confirmed.

The final pricing terms will be available on Friday, said Hugh Seaton, manager of capital projects financing.

JPMorgan is the senior underwriter for the sale of the series 2008 two, issue three, bonds (A2//), said Hugh Seaton, manager of capital projects financing for JEA.

Proceeds will be used for 2008 capital plant improvements at the St. Johns River Power Park, a coal-fired electric generation facility.

Sacramento to sell $640.92 million airport bonds

Sacramento County, California, plans to price $640.915 million airport system revenue and refunding bonds, according to a preliminary official statement.

The county intends to price $186.445 million series 2008A, $347.49 million series 2008B and $13.055 million taxable series 2008C airport system senior revenue bonds.

The county also plans to price $48.72 million series 2008D and $45.205 million series 2008E airport system subordinate and PFC revenue refunding bonds.

The bonds (Aaa/AAA/) are insured by Financial Security Assurance.

The series 2008A bonds have maturities from July 1, 2008 through July 1, 2028 with term bonds due 2032 and 2041. The series 2008B bonds have maturities from July 1, 2008 through July 1, 2028 with term bonds due 2033 and 2039. The series 2008C bonds are due July 1, 2012. The series 2008D bonds have serial maturities from July 1, 2008 through July 1, 2026 and the series 2008E bonds have serial maturities from July 1, 2008 through July 1, 2024.

Morgan Stanley is the senior manager of the negotiated sale.

Proceeds will be used to finance capital improvements in the airport system, establish escrow funds to refund and defease outstanding revenue bonds and fund the senior debt service and subordinate debt service reserve funds.

Oncology society prices $64 million

In other pricing news Thursday, the Industrial Development Authority of the City of Alexandria in Virginia priced $64 million in series 2008 variable-rate headquarters facilities revenue bonds on Thursday, an official statement said. The bonds were sold for the American Society for Clinical Oncology.

The offering includes $15.95 million in series 2008A in taxable bonds due Oct. 1, 2023 and $48.05 million in series 2008B in tax-exempt bonds due Oct. 2043.

The bonds (Aa2/AA-/) will initially bear interest at the weekly rate with a 12% maximum rate. The exact initial coupon was not immediately available at press time.

Shattuck Hammond Partners was the lead manager for the negotiated deal.

Proceeds will be used for the construction, acquisition or equipment of a condominium unit and parking facilities, as well as for the furnishings and fixtures connected to the unit.

Boston Housing brings $77.19 million

Elsewhere, the Boston Housing Authority priced $77.19 million in series 2008 capital program revenue bonds (/AA/) on Thursday, confirmed Lydia Agro with the authority. Agro said the terms were not immediately available, as some maturities were still being priced in the afternoon.

The bonds are due from 2012 to 2028 with the proceeds going to renovate and repair public housing projects and to pay for capitalized interest.

Lehman Brothers was the lead manager for the negotiated sale.

In other pricing news Thursday, the state of California had been set to price $1.75 billion in general obligation bonds (A1/A+/A+), but the pricing could not be confirmed with the issuer by press time.

The bonds are due 2009 to 2018 with term bonds due 2023 and 2027. The offering includes $1.3 billion in tax-exempt various purpose general obligation bonds, $400 million in tax-exempt general obligation refunding bonds and $50 million in taxable general obligation bonds.

The lead manager for the negotiated deal was Morgan Stanley.

The Denver International Airport was also expected to price $455 million in series 2008A airport revenue bonds (A1/A+/A+) on a negotiated basis Thursday.

The issuer did not return calls for additional details.

Citigroup Global Markets was the lead manager.

Proceeds will be used to refund the airport's series 2001C3, 2001C4, 2001C5, 2002A1, 2002A2, 2002A3, 2005B1 and 2005B2 auction-rate bonds.

Arizona will sell $239 million

Arizona intends to price $239 million certificates of participation through retail and institutional orders, the issuer said Thursday.

The series 2008A lease payments certificates (Aaa/AAA/) will be sold to individual investors on April 15 and to institutional investors on April 16, Clark Partridge, the state's comptroller, said in an interview.

"Sometimes there is a fair amount of retail out there that strengthens our deals," he said. "We don't know yet what the retail is going to be looking like. We'll make those calls over the next couple of days."

The certificates, insured by Financial Security Assurance, have serial maturities from 2009 through 2027.

Wachovia Bank, NA 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.

Children's Healthcare of Atlanta plans to price $200 million refunding revenue anticipation certificates and bonds on April 15, the issuer said Thursday.

The sale includes $110 million series 2008B and $40 million series 2008C refunding revenue anticipation certificates and $50 million series 2008B refunding revenue bonds, said hospital spokesman Patty Gregory.

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 is the senior manager of the negotiated sale.

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

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