Orange County Water District, Calif., plans $119.7 million certificates of participation on April 9

By Sheri Kasprzak

New York, April 3 - The Orange County Water District, Calif. plans to price $119.7 million of series 2008A adjustable-rate refunding revenue certificates of participation on April 9, the issuer confirmed Thursday.

The bonds (Aa2//AAA/F1+) will be sold on a negotiated basis through lead manager Citigroup Global Markets. The bonds will initially bear interest at the weekly rate, but may be converted to a bond interest term rate, a daily rate, a long-term rate or an auction rate, but the issuer said it does not intend to use the auction-rate mode given the current troubles with auction-rate securities.

"We are certainly very aware of the possibility of failed auctions and we really are trying to avoid a situation like that," a source at the issuer told Prospect News on Thursday.

The proceeds from the sale will be used to refund the district's series 2005A auction-rate securities and series 2007B bonds.

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