Maryland sells $415 million in G.O.s with 3.86% TIC; Texas Public Finance brings $214.9 million

By Cristal Cody and Sheri Kasprzak

New York, July 16 - Another active day for pricings was led Wednesday by a $415 million sale of series 2008 general obligation bonds from the state of Maryland. Another large offering came from the Texas Public Finance Authority.

Meanwhile, the volume of new offerings coming into the pipeline tapered off Wednesday, giving credence to market sources' earlier assertions that the summer season is putting a damper on pricing action.

Moving back to Wednesday's pricings, the Maryland bonds priced with a 3.857473% true interest cost, said Patti Konrad, spokeswoman for the state treasurer's office.

The bonds were sold on a competitive basis with Banc of America as the winning bidder. The financial adviser was Public Financial Management.

The bonds are due from 2011 to 2023 with 5% coupons across the board. The yields, Konrad said, were not immediately available.

Proceeds will be used for the acquisition and construction of state facilities; capital grants to local governments for public schools, community colleges and jails; and matching fund loans and grants to local governments, nonprofit institutions and other entities for hospital, cultural and other projects.

Texas Finance Authority prices $214.9 million

Elsewhere, the Texas Public Finance Authority found a better market than it expected Wednesday when it priced $214.9 million G.O. and refunding bonds with a 3.06% total TIC, a source told Prospect News.

The series 2008A bonds (Aa1/AA/AA+) priced with 4% to 5% coupons to yield 1.85% to 4.61%.

The $157.145 million refunding portion priced with a 3.09% TIC.

"The refunding portion of the bonds was a current refunding so we were going to go ahead with the refunding regardless of what it generated," the source said.

The authority expected to have about $6 million, or 3%, net present value savings on the refunding.

"The dollar net present value savings was $8.365 million on refunding the bonds, which translates to a 4.9% savings," the source said. "So we were real happy with it."

The remaining $57.755 million in new money bonds priced with a 4.2% TIC.

The bonds have serial maturities from Oct. 1, 2008 through Oct. 1, 2028.

Piper Jaffray & Co. was the senior manager of the negotiated sale.

Proceeds will be used to refund the 2009 through 2015 maturities from the series 1998B G.O. bonds and to finance construction, renovations and land acquisitions for the state criminal justice and public safety departments.

Nevada prices $300.33 million

Also on Wednesday, Nevada priced $300.325 million G.O. bonds (Aa1/AA+/AA+) in three tranches in competitive sales on Wednesday, a source told Prospect News.

The $279.825 million series 2008C capital improvement and cultural affairs bonds priced with a 4.35% TIC from winning bidder Merrill Lynch & Co.

The bonds priced with 5% coupons to yield 3.23% to 4.53% from 2013 through 2027.

The $13 million series 2008D natural resources bonds priced with a 4.39% TIC from winning bidder Robert W. Baird & Co.

The bonds priced with 3.5% to 5% coupons to yield 3.1% to 4.7% from 2013 through 2028.

The $7.5 million series 2008E open space, parks and cultural resources bonds priced with a 3.91% TIC from winning bidder Piper Jaffray & Co.

The bonds priced with 3.5% to 4.125% coupons to yield 3.15% to 4.29% from 2013 through 2021.

Proceeds will be used to finance state capital improvement projects and award financial assistance to government groups and nonprofit organizations for projects that include the preservation or protection of historical buildings.

The state also expects to price on Thursday $3.39 million series 2008F safe drinking water revolving fund matching bonds due from 2009 through 2018 and $1.015 million series 2008G water pollution control revolving fund matching bonds due in 2009 and 2010.

Grand Prairie ISD prices with 4.77% TIC

Grand Prairie Independent School District in Texas priced $61.205 million unlimited tax school building bonds with a 4.77% TIC, a source familiar with the sale said Wednesday.

The series 2008 bonds (/AAA/AAA) priced with 3% to 5% coupons to yield 2% to 4.86%.

The bonds were sold as current interest and capital appreciation bonds.

The $60.465 million current interest bonds have serial maturities from 2011 through 2037.

The $740,000 premium capital appreciation bonds are due in 2009 and 2010.

Morgan Keegan & Co. was the senior manager of the negotiated sale.

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

Medical College of Wisconsin

In other pricings Wednesday, the Medical College of Wisconsin priced $149.305 million fixed- and variable-rate bonds on Wednesday, a source told Prospect News.

The $81.01 million series 2008A uninsured fixed-rate revenue bonds (A1) priced through the Wisconsin Health and Educational Facilities Authority.

Pricing terms were not immediately available.

Goldman, Sachs & Co. managed the negotiated sale.

Proceeds will be used to refund the series 2004B-1 and 2004B-2 bonds, fund a debt service reserve fund and pay costs of completing the Translational and Biomedical Research Center and other renovations.

New York water sale

In other news, the New York City Municipal Water Finance Authority was expected to price $453 million in refunding and fixed-rate bonds, but calls for the details were not immediately returned.

Proceeds for the deal will be used for water and sewer capital projects.

Elsewhere, the Cypress-Fairbanks Independent School District of Texas had been expected to price $258.965 million in series 2008 schoolhouse and refunding bonds (Aa3//AAA). Calls and e-mails to the issuer for the pricing terms were not returned by press time Wednesday.

The bonds were sold on a negotiated basis with Ramirez & Co. as the lead manager.

Proceeds will be used to construct new school facilities, acquire land, renovate existing facilities and refund outstanding obligations for interest cost savings.

Also, Scioto County in Ohio planned to price $150.15 million in series 2008 refunding revenue bonds (A2).

Goldman, Sachs & Co. was the lead manager for the negotiated sale.

The bonds are due 2010 to 2022, and proceeds will be used to refund the Southern Ohio Medical Center's series 2006A and 2006B period auction reset revenue bonds and to establish a debt service reserve fund.

The full terms were not available Wednesday.

Harris County, Texas, to price $325 million

Looking ahead, Harris County, Texas, plans to price $325 million toll road senior lien revenue and refunding bonds on Tuesday, a source said Wednesday.

The series 2008B bonds (Aa3) will price in a negotiated sale with Goldman, Sachs & Co. as senior manager.

Proceeds will be used to refund the county's series E commercial paper notes, finance a portion of the toll road project and fund an increase in the debt service reserve requirement.

Cleveland to price $288.78 million

Coming up Thursday, the city of Cleveland intends to sell $288.78 million in airport system revenue bonds on Thursday, said a preliminary official statement.

The bonds (/AA/A-1+/AA+/F1+) will be sold on a negotiated basis with RBC Capital Markets as the lead manager for the series 2008A bonds, Wachovia Securities as the lead manager for the series 2008B and 2008C bonds and Rice Financial Products as the co-manager for the series 2008A, 2008B and 2008C bonds. RBC is also the lead manager for the 2008D bonds, and JPMorgan is senior manager for the series 2008E, 2008F, 2008G and 2008H bonds with Loop Capital Markets as the co-manager.

The sale includes $60.86 million in series 2008A AMT bonds, $60.765 million in series 2008B AMT bonds and $27.835 million in series 2008C AMT bonds. The sale also includes $18.7 million in series 2008D non-AMT bonds, $51.125 million in series 2008E AMT bonds, $58 million in series 2008F taxable bonds, $7.425 million in series 2008G taxable bonds and $4.07 million in series 2008H taxable bonds.

The bonds initially bear interest at the weekly rate.

The 2008A and 2008B bonds are due 2027, the 2008C bonds are due 2022, the 2008D bonds and 2008E bonds are due 2024, the 2008F bonds are due 2033, the 2008G bonds are due 2017 and the 2008H bonds are due 2012.

Proceeds will be used to refund the city's outstanding series 2003 airport bonds and to refund the city's outstanding series 2007A through 2007C airport bonds.

Danbury's $94.35 million sale

Also ahead, Danbury, Conn., expects to sell $94.345 million in series 2008 G.O. bonds and G.O. bond anticipation notes on July 23, according to a preliminary official statement.

The offering includes $20 million in G.O. bonds and $74.345 million in G.O. BANs. The G.O.s are due from 2009 to 2028, and the BANs are due July 30, 2009.

The bonds will be sold on a competitive basis with Phoenix Advisors as the financial adviser.

Proceeds will be used to finance a portion of bond anticipation notes due Aug. 1, 2008, which were used for general purposes and school projects. The remainder will be used for new money for a variety of general purpose projects.

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