Dynamic Fuels sells $100 million; Massachusetts Bay Transportation to price $350 million Wednesday

By Cristal Cody and Sheri Kasprzak

New York, Oct. 21 - Some issuers were more bold than others with pricing on Tuesday as issuers continue to eye the market carefully.

Dynamic Fuels, for instance, priced $100 million in Gulf Opportunity Zone bonds Tuesday through the Louisiana Public Facilities Authority, while the Clark County Water Reclamation District of Nevada delayed its $250 million sale of general obligation water reclamation bonds.

Also put on hold was a $110 million offering of refunding revenue bonds from the Florida Municipal Power Agency. The bonds were originally slated to price this week but were moved to day-to-day status, said Diane Nelson, spokeswoman for the agency.

Moving back to the Dynamic Fuels sale, the Tyson Foods, Inc. and Syntroleum Corp. joint venture sold the one-year floating-rate notes with a 1.3% initial rate.

The bonds were sold through senior manager SunTrust Robinson Humphrey.

Proceeds will be used for the design and construction of a renewable fuels plant in Geismar, La., which will produce diesel and jet fuels from animal fats and greases.

"We're very pleased with the outcome of the bond sale, particularly given the current economic challenges facing U.S. financial markets," said Jeff Bigger, director of Dynamic Fuels, in a statement.

"The funding will enable us to keep this important alternative energy project on track."

Clark County Water delays sale

The deteriorating market again caused the Clark County Water Reclamation District to postpone its $250 million in G.O. water reclamation bonds.

"We just didn't see a market for it right now," a market source told Prospect News.

"We're waiting for the credit market to stabilize."

The competitive sale may be rescheduled in a couple of weeks.

The series 2008 bonds (Aa2/AAA/) have serial maturities from 2013 through 2038.

Hobbs, Ong & Associates and Public Financial Management are the financial advisers.

The proceeds will be used to construct, reconstruct, improve and extend the district's sanitary sewer system.

Mass Bay Transportation sale ahead

Moving to upcoming offerings, the Massachusetts Bay Transportation Authority is expected to price its previously announced $350 million in series 2008A assessment bonds on Wednesday, a sales calendar said.

The bonds (Aa1/AAA/) will be sold through senior managers J.P. Morgan Securities, Citigroup Global Markets and Barclays Capital.

The bonds are due 2013 to 2029.

Proceeds will be used to repay commercial paper notes, pay capital costs and make a deposit to a debt service reserve fund.

Also coming up on Wednesday, Harris County in Texas is gearing up to sell $203 million in series 2008C permanent improvement refunding bonds, according to a calendar of deals.

The bonds (Aa1/AAA/) will be sold on a negotiated basis with Loop Capital Markets as the lead manager.

Serial maturities range from 2010 to 2028.

Proceeds will be used to defease the county's series A1 and series D G.O. commercial paper notes.

Arizona State deal Wednesday

In yet another deal scheduled for pricing Wednesday, Arizona State University is slated to sell $103.25 million in series 2008C revenue bonds, according to a calendar of upcoming deals.

The bonds (Aa3/AA/) will be sold on a negotiated basis with Merrill Lynch & Co. as the lead manager.

The bonds are due 2010 to 2038.

Proceeds will be used for costs of the Polytechnic Academic Complex and the renovation of a hazardous materials facility.

Santee Cooper to price revs

Moving to Thursday's calendar of offerings, the South Carolina Public Service Authority, known as Santee Cooper, is expected to price its previously announced $350 million in series 2008 revenue bonds, said a calendar of upcoming sales.

The bonds (Aa2/AA-/AA) will be sold on a negotiated basis with Goldman, Sachs & Co. as the lead manager. The co-managers are Bear Stearns & Co., Merrill Lynch and Morgan Stanley.

The bonds are due from 2010 to 2023 with term bonds due 2028, 2033, 2038 and 2048.

Proceeds will be used for the authority's ongoing capital improvement program.

Rhode Island TANs to price

Looking a bit further ahead, the State of Rhode Island and Providence Plantations expects to price $350 million in G.O. tax anticipation notes early the week of Oct. 27, a market source said Tuesday.

"It could be as early as Monday. They're flexible," the source said.

The series 2009 notes are due June 30, 2009.

Morgan Stanley is the senior manager of the negotiated sale.

The proceeds will be used for general expenses of the state and to repay a $25 million loan made on Sept. 29 from the State Temporary Disability Fund.

Also coming up, the New Jersey Environmental Infrastructure Trust expects to price $134.635 million in bonds through a competitive sale on Oct. 29, according to a sale notice.

The series 2008A environmental infrastructure bonds (Aaa/AAA/AAA) have serial maturities from 2010 through 2028.

Public Financial Management is the financial adviser.

The proceeds will be used for various system improvements.

WellSpan Health sale

Also on Monday, WellSpan Health of Pennsylvania plans to price its previously announced $280 million in series 2008A revenue bonds, said a calendar of sales.

The bonds had been scheduled to price last week, but the sale date was pushed back.

The bonds (//AA-) will be sold through the General Authority of Southcentral Pennsylvania with Citigroup Global Markets as the senior manager.

The serial maturities are from 2009 to 2035.

Proceeds will be used to refund the authority's series 2002, 2005A, 2005B, 2005C, 2005D, 2007A and 2007B bonds.

Eye on rating agencies

In other news, the U.S. House Committee on Oversight and Government Reform plans to hold a hearing Wednesday on the role of the nation's three largest rating agencies in the current financial fallout.

The committee intends to probe the actions of Standard & Poor's, Moody's Corp. and Fitch Ratings and have called witnesses such as S&P president Deven Sharma, Moody's chairman and chief executive Raymond McDaniel and Fitch president and chief executive Stephen Joynt.

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