Kentucky Housing sells $70 million revenue bonds; health-care offerings dominate market

By Cristal Cody and Sheri Kasprzak

New York, Sept. 10 - Another active day for pricings was led by an Oklahoma-based dam authority and the sale of revenue bonds from the Kentucky Housing Corp.

Meanwhile, a new slate of offerings out of the health-care sector seemed to dominate new-issue activity. A number of upcoming offerings are coming out of that particular sector, including a very large deal from the William Beaumont Hospital of Michigan.

Moving back to the Kentucky Housing sale, the corporation priced $70 million in series 2008E and 2008F revenue bonds on Wednesday, said Walter Clare, the corporation's senior director for financial management.

The sale included $60 million in series 2008E bonds and $10 million in series 2008F bonds.

The 2008E bonds are due from 2010 to 2018 with term bonds due 2023, 2028, 2033 and 2038. The serials have coupons from 2.35% to 4.15%, all priced at par. The 2023 bonds have a 4.875% coupon, the 2028 bonds have a 5.125% coupon, the 2033 bonds have a 5.375% coupon and the 2038 bonds have a 5.45% coupon.

The 2008F bonds are due 2037 with a 5.625% coupon to yield 5.25%.

The bonds (Aaa/AAA/) were sold through senior managers Merrill Lynch and Citigroup Global Markets.

Proceeds will be used to purchase mortgage loans and to make a deposit to a debt service reserve fund.

Elsewhere, the Grand River Dam Authority of Oklahoma priced $562.91 million in series 2008A and 2008B bonds, a source at the issuer confirmed, but the final terms were not immediately available.

The series 2008A and series 2008B bonds (MIG 1//A) were sold in a negotiated sale led by senior manager Citigroup Global Markets.

Proceeds will be used to purchase an undivided interest in the Redbud gas-fired, combined-cycle power generation facility.

Health-care bonds on rise

The new health-care offerings in the marketplace were led by the City of Royal Oak Hospital Finance Authority's $583.72 million revenue and refunding bonds (A1/A/A+) for the William Beaumont Hospital in Michigan.

The sale includes series 2008V fixed-rate and series 2008W term-rate bonds, said a preliminary official statement.

Morgan Stanley is the senior manager of the negotiated sale.

Proceeds will be used for construction and renovation costs, to refund outstanding bonds and to pay termination payments made under interest-rate hedge agreements for the refunded bonds.

The hospital plans to refund the $48.675 million series 2001N revenue refunding bonds, $31.275 million series 2001O revenue refunding bonds, $82.675 million series 2003P revenue bonds, $47.4 million series 2003Q revenue refunding bonds and $206.1 million series 2006R and 2006S revenue bonds and series 2006YT revenue and refunding bonds.

St. Luke's sale ahead

Also coming up in health care, the Idaho Health Facilities Authority expects to price $275 million revenue bonds for St. Luke's Health System on Tuesday, a source said Wednesday.

The series 2008A bonds (/A/) have serial maturities from 2009 through 2024 and terms due 2028, 2033, 2038 and 2043.

Merrill Lynch & Co. will manage the negotiated sale.

Proceeds will be used to finance, refinance or reimburse St. Luke's for acquisition, construction, renovation and improvement costs for health-care facilities.

Cape Fear Valley deal

The North Carolina Medical Care Commission intends to sell $127.455 million revenue bonds (A3/A-/) for the Cape Fear Valley Health System, according to preliminary official statements.

The sale includes $82.455 million series 2008B revenue bonds, which will be sold in a negotiated sale managed by Citigroup Global Markets and BB&T Capital Markets.

Edward Jones will manage the negotiated sale of $45 million series 2008C bonds.

Proceeds will be used to refund the health system's outstanding series 2006B revenue bonds and to acquire equipment.

In other new offerings in health care, Medford, Ore., plans to sell $102.3 million revenue refunding bonds for the Asante Health System, according to a preliminary official statement.

The series 2008 bonds (Aaa/AAA/) are due 2038.

The bonds will price initially with a weekly interest rate in a negotiated sale managed by Merrill Lynch & Co.

Asante also expects to enter into an interest-rate agreement with Merrill Lynch to hedge its interest rate exposure on the series 2008 bonds.

Proceeds will be used to refund and redeem the $100 million outstanding from the series 2005B auction-rate revenue bonds.

Cottage Health deal

Also ahead in health care, the Cottage Health System in California plans to sell $100 million in series 2008A and 2008B variable-rate revenue bonds the week of Sept. 15, a preliminary official statement said Wednesday. The bonds will be sold through the California Statewide Communities Development Authority.

The bonds (/A+/AA-) will be sold on a negotiated basis with Morgan Stanley as the senior manager.

The sale includes $50 million in series 2008A bonds and $50 million in series 2008B bonds. Both are due Nov. 1, 2036.

Proceeds will be used for the demolition of existing space at the Santa Barbara Cottage Hospital and the construction of new medical facilities.

Athens-Clarke County to price $220.02 million

Coming up, the Unified Government of Athens-Clarke County in Georgia intends to bring $220.02 million water and sewerage revenue bonds, according to a preliminary official statement.

The series 2008 bonds (Aa3/AA-/AA) have serial maturities from 2009 through 2028 and terms due 2033 and 2038.

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

Proceeds will be used to refund the series 1997 revenue bonds and to pay for renovations and additions to the water and sewerage system.

Florida to price environmental revs

Coming up on Thursday, Florida plans to price $156.69 million revenue bonds for the Department of Environmental Protection through a competitive sale, according to a sale notice from the state.

The series 2008B Florida Forever bonds (A1/AA-/A+) have serial maturities from 2009 through 2028.

Proceeds will be used to finance the acquisition and improvement of lands, water areas and other resources for restoration, conservation, recreation and water resource development or historical preservation.

© 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.