Virginia Housing Development Authority prices $200 million bonds; Rhode Island brings $107.82 million

By Aaron Hochman-Zimmerman and Sheri Kasprzak

New York, Dec. 2 - Pricing action heated up on Tuesday with several offerings in the pipeline and more to come in the next few weeks. In the week ahead, several offerings are expected, including quite a few from the Dormitory Authority of the State of New York.

In fact, Dasny is in the middle of a retail order period for its $668.5 million in series 2008 mental health services improvement revenue bonds. The authority also hopes to sell school district revenue bonds and City University System bonds later this week.

Meanwhile, in the secondary market, a trader said activity was a bit busier than usual with yields somewhat higher across the board.

Heading up Tuesday's primary action was a $200 million sale of series 2008D-E commonwealth mortgage bonds (Aaa/AAA/) from the Virginia Housing Development Authority.

"We got market rates," said a source involved with the offering. "The market's in disarray."

The offer was downsized from $300 million and split into $46.6 million series 2008D AMT bonds and $153.4 million series 2008E non-AMT bonds.

"We knew that going into it," said the insider when asked why the deal was downsized. "Things worked out as planned," after the authority decided to see what it could get in the market.

Merrill Lynch & Co. acted as the lead underwriter.

Of the series 2008D bonds, one term bond due 2014 priced at par to yield 6.125%. Serial bonds priced to yield between 5% and 6.375% with maturities from 2010 to 2016.

Of the series 2008E bonds, seven term bonds due between 2020 and 2031 priced at par to yield between 5.5% and 6.375%. Serial bonds priced to yield between 3.5% and 5% with maturities between 2011 and 2018.

Proceeds will be used to fund mortgage loans.

Rhode Island prices $107.82 million

Elsewhere in Tuesday's pricing activity, the State of Rhode Island and Providence Plantations sold $107.82 million in series 2008 general obligation bonds Tuesday, said Mark Dingley, chief legal counsel for the state treasurer's office.

The bonds (//AA-) were sold through lead manager Morgan Stanley.

The sale included $86.875 million in series 2008B consolidated capital development loan bonds, $8.5 million in series 2008C capital development loan bonds and $12.445 million in series 2008D consolidated capital development loan bonds.

The 2008B bonds are due 2010 to 2024 with a term bond due 2028. The serials have coupons from 3% to 6% with yields from 2.23% to 5.37%. The 2028 bonds have a 5.5% coupon to yield 5.62%.

The series 2008C bonds are due from 2010 to 2018 with coupons from 5.5% to 6.66%. The yields range from 3.54% to 6.66%. The bonds feature a call option in 2018 at par.

The 2008D bonds are due 2011 to 2018 with coupons from 3% to 5.25% and yields from 2.62% to 4.42%.

Proceeds from the deal will be used to refund all of the state's outstanding series 2000B bonds.

Northside ISD brings $80 million

In other pricing news, the Northside Independent School District of Texas priced $80 million in series 2008A unlimited tax school building bonds (Aaa/AAA/), according to a source close to the deal.

RBC Capital Markets acted as the lead underwriter for the permanent school fund insured bonds, which priced Monday. Banc of America Securities LLC, Frost Bank and Southwest Securities are the co-managers.

The bonds carry maturities from 2012 to 2038 and yields between 2.86% to 5.67%.

The bonds may be called at par on Aug. 15, 2018.

Proceeds will be used to construct, acquire, renovate and equip school facilities.

Virginia PBA to sell bonds

Looking to offerings coming up later this week, the Virginia Public Building Authority is scheduled to price its $150 million series 2008B public facilities revenue bonds (Aa1/AA+/AA+) Wednesday, according to the Virginia treasurer's office.

BB&T Capital Markets will act as lead underwriter for the issue, which carries maturities between 2009 and 2028.

Proceeds from the sale will finance or refinance the acquisition of public buildings, including local and regional jails and a juvenile detention facility.

Miami-Dade sale ahead

A bit further out, Miami-Dade County in Florida is slated to sell $350 million in series 2008B Building Better Communities Program G.O. bonds on Dec. 11, said a preliminary official statement released Tuesday.

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

The bonds are due from 2009 to 2038.

Proceeds will be used for capital improvement projects that are part of the Building Better Communities Program.

Secondary seen busier

Moving to the secondary market, trading activity picked up somewhat, said a trader reached Tuesday afternoon.

"Things are busier today than they have been the past few days," she said. "Yields are up, pretty much across the board. We're seeing yields up both on the long and short ends."

In specific trades, the Christus Health series 2008A revenue refunding bonds sold through the Tarrant County Cultural Education Facilities Finance Corp. of Texas were trading Tuesday. The 6.5% 2037s were seen trading at 6.578%.

Elsewhere, the Massachusetts Bay Transportation Authority's series 2008A bonds were also in play, with the 5% 2017s seen trading at 4.136%.

Also on Tuesday, Trinity Health Credit Group of Iowa's series 2008B revenue and refunding bonds were seen trading. The 6.25% 2033s were trading at 6.068%.

© 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.