Fremont, Calif., school district raises $80 million; Wisconsin to sell $302.2 million G.O. bonds

By Cristal Cody and Sheri Kasprzak

New York, Aug. 14 - Another light day for pricing activity was led by the Fremont Unified School District and the Board of Supervisors of Santa Clara County in California, which priced $80 million in general obligation bonds.

Elsewhere, Baltimore County, Md., released the particulars on its previously announced $81.6 million sale of series 2008 commercial paper bond anticipation notes.

Separately, Wisconsin emerged with plans to price $302.2 million general obligation bonds through a competitive sale on Tuesday, according to a sale calendar.

In the Fremont sale, the issuer sold $80 million in G.O. bonds to strong investor interest with a 4.597751% true interest cost Thursday, a market source told Prospect News.

The series A bonds (Aa2/AA+/) priced with 4% to 5% coupons to yield 1.48% to 4.85%.

"There seems to be strong investor interest in plain vanilla transactions with decent size and double-A or better ratings," the source said.

"This is a tough market to bring competitive sales that are non-vanilla, even in a minor way. The bigger transactions are doing better in the marketplace, and the smaller deals are struggling."

Goldman, Sachs & Co. was the winning bidder out of 12 bids in the competitive sale.

The bonds have serial maturities from 2009 through 2028 and in 2033 and terms due 2030 and 2032.

Proceeds will be used to renovate and modernize Cupertino, Fremont, Homestead, Lynbrook and Monta Vista high schools.

Baltimore County deal

Moving back to the Baltimore County offering, the county sold $81.6 million in notes (P-1//F1+) Tuesday.

The sale includes $35 million in series 2008 consolidated public improvement commercial paper BANs, which are due Jan. 15, 2009 and have a 1.57% coupon, priced at par. The deal also includes $27.2 million in series 2008A metropolitan district commercial paper BANs and $19.4 million in series 2008B metropolitan district commercial paper BANs. The 2008A BANs are due Feb. 10, 2009 and have a 1.57% coupon, priced at par, and the 2008B BANs are due Feb. 12, 2009 and also have a 1.57% coupon, priced at par.

Banc of America Securities LLC was the lead manager for the negotiated sale.

Proceeds will be used for county expenditures pending a future bond sale.

Eastern Municipal Water delays deal

In other news Thursday, the Eastern Municipal Water District of California postponed its sale of $138.51 million in series 2008H water and sewer revenue certificates of participation (Aa3/AA/AA), said Chuck Rathbone, the district's chief financial officer.

The district has been in talks with the underwriters about what was in the market Thursday and "it was recommended to change." The bonds will now price Tuesday.

Rathbone said there were no major market concerns about the sale.

Citigroup Global Markets is the lead manager for the deal with Banc of America as the co-manager.

Proceeds will be used to finance capital improvements to the water and sewer system as well as to fund a debt service reserve fund.

Wisconsin to price $302.2 million

New offerings picked up on Thursday, led by Wisconsin's plans to price $302.2 million general obligation bonds through a competitive sale on Tuesday, according to a sale calendar.

The series 2008C bonds (//AA-) have serial maturities from 2010 through 2029.

Additional information was not immediately available.

Elsewhere on the horizon, the North Carolina-based Cape Fear Public Utility Authority intends to price $194.285 million water and sewer system revenue bonds, according to a preliminary official statement.

The series 2008 bonds (Aa3/AA/) have serial maturities from 2010 through 2028 and terms due 2035.

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

Proceeds will be used to pay acquisition and construction costs for improvements to the authority's water and sanitary sewer systems.

Palm Beach County sale ahead

Also coming up, Palm Beach County, Fla., plans to price its previously announced $180 million in series 2008 public improvement revenue bonds on Tuesday, according to a calendar of upcoming sales.

The bonds (Aa1/AA+/AA+) will be sold on a negotiated basis with Merrill Lynch as the lead manager.

Proceeds will be used to acquire, renovate, construct and equip additional law enforcement facilities; to refinance debt; and to make a deposit to a debt service reserve fund.

Auburn on tap

Auburn University in Alabama intends to sell $92 million in series 2008 general fee revenue bonds on Tuesday, according to a calendar of upcoming sales.

The bonds (/AA-/) will be sold on a negotiated basis. The underwriter for the sale could not be determined by press time Thursday.

Proceeds will be used for the construction and equipping of a new intercollegiate basketball complex and for the relocation, construction and equipping of other athletic facilities connected to the existing basketball complex.

Kent State offering emerges

Kent State University in Ohio plans to sell $60 million variable-rate general receipts bonds later in August, according to a preliminary official statement.

The series 2008B bonds (/AAA/) are due May 1, 2032.

Lehman Brothers will manage the negotiated sale.

Proceeds will be used to redeem the $60 million outstanding from the series 2002 general receipts bonds on Aug. 26.

Regional Health sells variable-rate bonds

Regional Health in South Dakota priced $67.465 million variable-rate revenue bonds on Thursday, but pricing details were not immediately available.

The series 2008 bonds (A1) were sold through the South Dakota Health & Educational Facilities Authority.

Piper Jaffray & Co. managed the negotiated sale.

Proceeds will be used to refund the series 2003 MBIA-insured variable-rate bonds and fund various capital projects.

Prosper I.S.D. pricing

The Prosper Independent School District in Texas planned to price $104,126,641 building and refunding bonds in a negotiated sale led by Southwest Securities on Thursday, but the sale could not be confirmed by press time.

The series 2008 bonds included $90.925 million current interest bonds with serial maturities from 2016 through 2027 and 2032 through 2043 and $13,201,641 premium capital appreciation bonds with serial maturities from 2013 through 2031.

Proceeds will be used to construct, renovate and equip school facilities and to refund the district's series 1998 and series 2002 building and refunding bonds.

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