Louisville Arena Authority sells $349 million; Los Angeles college district to price $621 million

By Sheri Kasprzak

New York, Aug. 28 - Pricing action continued unabated Thursday with a rather large deal from the Louisville Arena Authority pricing through the Kentucky Economic Development Authority.

A few sizeable upcoming sales also emerged on Thursday, including a deal from the Los Angeles Community College District.

Meanwhile, a sellside source told Prospect News that he feels market action may taper off into next week because of the shortened week.

"It's a short week," he said. "I think issuers are more hesitant to price in a short week. I have no doubt there'll be some stuff out there, but I don't think it will compare to this week."

After Labor Day, however, things could heat back up.

"I think the week after should be back to normal," he added.

Louisville Arena Authority sale

Meanwhile, back to the Kentucky Economic Development sale, the authority sold $349.219 million in series 2008A-C project revenue bonds for the Louisville Arena Authority.

The sale included $292.28 million in series 2008A-1 fixed-rate bonds, $26.939 million in series 2008A-2 capital appreciation bonds, $20.1 million in series 2008B fixed-rate bonds and $9.9 million in series 2008C fixed-rate bonds.

The 2008A-1 bonds are due 2028, 2033, 2038 and 2042. The 2028 bonds have a 5.75% coupon to yield 5.88%, the 2033 bonds have a 6% coupon to yield 6.06%, and the 2038 bonds have a 6% coupon to yield 6.12%. The 2042 bonds have a 6% coupon to yield 6.22%.

The 2008A-2 bonds are due 2012 to 2024. The coupons range from 4.41% to 6.18% and all are priced at par.

The 2008B bonds are due 2021 with a 7% coupon, priced at par.

The 2008C bonds are due 2025 with an 8.25% coupon, priced at par.

The bonds were sold on a negotiated basis with Goldman, Sachs & Co. as the senior manager.

Proceeds will be used to develop and construct the arena for the University of Louisville men's and women's basketball programs.

Los Angeles college district

Moving to upcoming sales, the Los Angeles Community College District announced plans Thursday to price $621.415 million in general obligation bonds.

The sale date, a sellsider familiar with the deal said, has not been set, but the pricing is expected in September.

The bonds (Aa2/AA/) will be sold on a negotiated basis with Citigroup Global Markets and Goldman, Sachs & Co. as the senior managers.

The sale includes $276.5 million in series 2008E-1 bonds and $344.915 million in series 2008F-1 bonds.

Proceeds from the sale will be used for the construction, equipment, acquisition and furnishing of district facilities.

North Texas Tollway deal

Another large offering comes from the North Texas Tollway Authority, which intends to sell $609.037 million in series 2008 system revenue refunding bonds, according to a preliminary official statement.

The bonds will be sold on a negotiated basis with Citigroup Global Markets and Lehman Brothers as the lead managers.

The sale includes $359.04 million in series 2008H first-tier put bonds, $199.998 million in series 2008I first-tier convertible capital appreciation bonds and $50 million in series 2008J first-tier capital appreciation bonds.

The 2008H bonds are due 2043, the 2008I bonds are due 2042 and 2043 and the 2008J bonds are due 2039 through 2042.

Proceeds will be used for the construction of the State Highway 121 project.

San Mateo County to price bonds

Elsewhere in upcoming deals, the San Mateo County Joint Powers Financing Authority of California intends to sell $148.285 million in series 2008A refunding lease revenue bonds, said a preliminary official statement.

The bonds (Aa3/AA/) will be sold through senior managers Citigroup Global Markets and Lehman Brothers.

The bonds are due 2009 to 2028 with term bonds due 2033 and 2036.

Proceeds will be used to refund the authority's outstanding series 2003A, 2003B and 2003C bonds.

Jacksonville to price $109 million

Looking to next week's pricing action, the city of Jacksonville, Fla., is gearing up to price $108.925 million in series 2008 Better Jacksonville sales tax revenue bonds Sept. 4, according to a preliminary official statement.

The bonds (Aa3/AA-/AA) will be sold on a competitive basis with Public Financial Management as the financial adviser.

The bonds are due 2009 to 2030.

Proceeds will be used to reimburse the city for costs associated with the Better Jacksonville capital improvement project.

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