Arlington County, Va., prices $111.185 million G.O.s; Kentucky student loan corporation delays pricing

By Cristal Cody and Sheri Kasprzak

New York, June 3 - Tuesday proved to be another active day for pricings - and a day filled with announcements of upcoming offerings, both for this week and throughout June.

Not every issuer is impressed with market conditions, however. At least two issuers postponed their bond sales for later this month, including the Kentucky Higher Education Student Loan Corp.

Leading the pricing action Tuesday was Arlington County in Virginia, which priced $111.185 million in general obligation public improvement bonds. The bonds priced with a 4.045% true interest cost, said Sarah Greear, senior managing consultant of Public Financial Management, the issuer's financial adviser.

The series 2008 bonds (Aaa/AAA/AAA) priced with 3.25% to 5% coupons to yield 1.83% to 4.37%, Greear said.

"It was right in line with their expectations," Greear said.

The bonds have serial maturities from 2009 through 2028.

Davenport & Co. was the winning bidder out of 11 bids in the competitive sale, Greear said.

"Arlington always uses competitive sales on its general obligation bonds because they have the highest ratings from all three agencies," she said. "It was a pretty successful sale today."

Proceeds will be used for projects for schools, utilities, parks and recreation, transportation and community infrastructure.

Connecticut prices $400 million

Elsewhere in Tuesday's pricing news, the state of Connecticut priced $400 million in series 2008A G.O. bonds, Christine Palm, spokeswoman for the state treasurer's office, confirmed.

"We won't know until late tomorrow [Wednesday]," Palm said when asked if the pricing terms were available Tuesday afternoon.

The bonds (Aa3/AA/AA) are due from 2009 to 2028 and were sold through lead manager Citigroup Global Markets.

The proceeds will be used for school construction and community conservation, among other projects.

Kentucky bonds postponed

In other news Tuesday, the Kentucky Higher Education Student Loan Corp. will now be selling its previously announced $300 million in series 2008A-1 tax-exempt and series 2008A-2 taxable variable-rate demand revenue and refunding bonds on June 10, said James Ackinson, chief financial officer of the corporation.

The bonds had been set to sell on Tuesday.

"We now expect to sell on June 10," Ackinson said. "These will be short-term variable-rate demand obligations, subject to weekly repricing. They are expected to trade at levels comparable to other AAA short-term bonds."

None of the proceeds, Ackinson said, will be used for new student loans. Instead, the proceeds will go to refinance some auction-rate bonds.

"The purpose of the issue is to refinance $217 million of outstanding auction-rate securities - which because of the credit crunch have failed to attract investors and bear interest rates 200 basis points higher than normal - and to issue new tax-exempt bonds of $83 million, the proceeds of which will be used to pay down a line of credit from a commercial bank - which was used to originate student loans."

Delaware County bonds delayed

Delaware County in Ohio pushed back the sale date of $50 million bonds to later in June, the issuer said Tuesday.

The $35 million series 2008A capital facilities bonds (Aa1//) and $15 million series 2008B capital facilities special obligation sales tax bonds (Aa2//) should price by the end of the month, county administrator Dave Cannon said.

The bonds were expected to price on Tuesday.

"It will probably be a few more weeks before we're ready to issue those," he said.

The county is finalizing the costs for a new court facility, which will determine the final size of the bond sale, Cannon said.

Harvard's $336.28 million bond sale

Also on Tuesday, Harvard University in Massachusetts was expected to sell $336.28 million in series 2008 revenue bonds, but the issuer did not return calls for the terms by press time.

The bonds were sold on a negotiated basis with JPMorgan as the senior manager.

The sale included $220.6 million in series 2008B bonds, which are 10-year bonds, and $115.68 million in series 2008C bonds, which are due in 30 years.

Proceeds will be used to finance capital projects previously funded with commercial paper.

Loyola's $80 million deal

Loyola University of Chicago was closing Tuesday on the sale of $80 million commercial paper revenue notes, a source told Prospect News. The pricing terms were not immediately available.

The notes priced through the Illinois Finance Authority.

Banc of America Securities LLC was the senior manager of the negotiated sale.

Proceeds will be used to refinance debt and to refinance, finance or reimburse the university for costs related to acquiring, constructing, renovating, improving or equipping facilities.

Sparks Marina bond sale

Coming up later this week, the Sparks Marina in Nevada will sell $103 million in sales tax anticipated revenue bonds Wednesday, according to a calendar of upcoming deals.

The bonds (Baa2//) will be sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The sale includes $77 million in series 2008A bonds, which are due 2023 and 2028, and $26 million in series 2008B bonds, due 2020 and 2027.

Proceeds will be used for the construction of the Legends entertainment and retail center at the marina.

Baltimore's water revenue bonds

Also ahead this week, the city of Baltimore plans to price $81.585 million in series 2008 water revenue bonds Thursday, according to a preliminary official statement.

The bonds (A2/AA/) will be sold on a negotiated basis with Citigroup Global Markets as the lead manager.

The bonds are due from 2009 to 2028 with term bonds due 2033 and 2038.

The sale includes $25.985 million in series 2008A water bonds and $55.6 million in series 2008A wastewater bonds.

Proceeds will fund wastewater capital improvement projects and water capital improvement projects.

More Baltimore bonds

The Mayor and City Council of Baltimore, Md., plans to tentatively price $80.73 million G.O. bonds on June 11, the issuer said Tuesday.

The $53.195 million series 2008A tax-exempt and $27.535 million series 2008B taxable bonds will be offered first for retail orders on June 10, said Stephen Kraus, chief of the Bureau of Treasury Management.

"That date could change depending on market conditions," he said.

The bonds have serial maturities from 2009 through 2028 and are insured by Financial Security Assurance.

Merrill Lynch & Co. is the senior manager of the negotiated sale.

Proceeds will be used to fund public improvements, including for libraries, parks and schools.

Florida school sale

The School Board of Pasco County in Florida expects to price $74.345 million certificates of participation on Wednesday, a source with the issuer told Prospect News.

The series 2008C variable-rate COPs are due Aug. 1, 2032.

The COPs will price with an initial weekly interest rate.

Banc of America Securities LLC will manage the negotiated sale.

Proceeds will be used to refund the board's series 2007B COPs and to pay the termination for a swap agreement.

Tentative market plans

The Michigan Tobacco Settlement Finance Authority expects to price $187.214 million tobacco settlement asset-backed bonds on June 10, a source with the state said Tuesday.

The deal includes $123.135 million series 2008A fixed-rate current interest turbo term bonds and $64.079 million series 2008B capital appreciation turbo term bonds.

The series 2008A bonds are due June 1, 2038, and the series 2008B bonds are due June 1, 2058.

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

Proceeds will be used to pay $60 million for a deposit to the state's general fund and to refund the authority's series 2006B and 2006C indexed floating-rate turbo term bonds.

Emory plans sale

Emory University in Georgia tentatively expects to price $315 million revenue bonds on June 11, a source connected to the sale said Tuesday.

The sale includes $95 million series 2008A, $100 million series 2008B and $120 million series 2008C revenue bonds.

The bonds (Aa2//) will price through the Private Colleges and Universities Authority.

The series 2008A bonds will price with an initial long-term interest rate and are subject to mandatory tender on July 7, 2009.

The series 2008A bonds are due Sept. 1, 2043. The series 2008B bonds are due Sept. 1, 2011, and the series 2008C bonds are due Sept. 1, 2043.

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

Proceeds will be used to refund the university's $75.408 million outstanding commercial paper notes and series 1997A revenue bonds and to finance university projects that include a new psychology building, renovation of the Atwood Chemistry Center and expansion of the Rollins School of Public Health and the Yerkes clinical veterinary research building.

University of Colorado hospital bonds

Looking a little farther ahead, the University of Colorado Hospital Authority intends to price $92.45 million revenue bonds on June 18, the issuer said Tuesday.

The $19.14 million series 2008A bonds and the $73.31 million series 2008B bonds will close on June 19, said James Wilson, finance analyst.

The bonds will price with an initial weekly interest rate.

The series 2008A bonds are due Nov. 15, 2024, and the series 2008B bonds are due Nov. 15, 2031.

Citigroup Global Markets is the manager of the negotiated sale.

Proceeds will be used to refund the $72.41 million series 2007A refunding revenue bonds and to finance equipment at the University of Colorado Health Sciences Center's Fitzsimons Campus.

California bond sale planned

The California School Cash Reserve Program Authority plans to price $476 million COPs the week of July 9, a sellside source said Tuesday.

The series 2008/2009A COPs (MIG 1//) will be sold for a pool of issuers that is expected to include 171 school districts, community colleges and county education offices.

This year's sale will be the twenty-first consecutive year for the pooled note program.

Piper Jaffray & Co. will manage the negotiated sale.

Proceeds may be used to fund imbalances between revenues and expenditures.

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