New issue action stalls as issuers eye market; Kentucky's Ashland Hospital to sell $100 million

By Cristal Cody and Sheri Kasprzak

New York, Sept. 19 - The number of new offerings coming up dwindled on Friday as issuers cast a wary eye to troubled market conditions.

Throughout the week, issuers that had planned to sell bonds were pulling back, postponing their sales until market conditions improve.

"It's really very slow right now," said one sellside source reached Friday afternoon.

"Issuers don't want to get out there. Most are taking it day by day to see how things look. We're probably not going to see a lot of new activity until things settle down in the market."

Leading the action for the week of Sept. 22 is a $100 million sale of revenue bonds scheduled for Monday from Ashland Hospital Corp., also known as the King's Daughters Medical Center, in Kentucky.

The series 2008A and 2008B bonds will be sold through the Kentucky Economic Development Finance Authority.

The bonds (A1/A+/A+) will be offered in a negotiated sale managed by RBC Capital Markets.

Albert Einstein Healthcare sale Thursday

The Albert Einstein Healthcare Network of Pennsylvania is scheduled to price $88.54 million in series 2008A revenue bonds Thursday, according to a calendar of upcoming deals.

The bonds (A3//A-) will be sold through the Pennsylvania Economic Development Finance Authority on a negotiated basis. Goldman, Sachs & Co. is the senior manager.

The bonds are due 2009 to 2018.

Proceeds will be used to refund the Hospitals and Higher Education Facilities Authority of Philadelphia's series 1998A revenue bonds.

Fluvanna County sale

The Virginia Public School Authority intends to price $67.26 million special obligation school financing bonds for Fluvanna County through a competitive sale, also on Thursday, according to a preliminary official statement.

The series 2008 bonds (A1/AA-/) have serial maturities from 2011 through 2035.

BB&T Capital Markets is the authority's financial adviser for the sale.

Davenport & Co. is the county's financial adviser.

Proceeds will be used for capital school improvement projects.

Carmel Junior Waterworks offering

Looking a little further ahead, the Indiana Bond Bank is expected to sell $81.687 million in special program bonds for the City of Carmel Junior Waterworks on Sept. 29, said a calendar of upcoming sales.

The bonds (/AAA/) will be sold on a negotiated basis with Oppenheimer & Co. as the senior manager.

The sale includes $61.01 million in series 2008B current interest bonds and $20.677 million in series 2008B capital appreciation bonds.

Proceeds will be used to finance and refinance improvements to the waterworks system.

Elsewhere, the Municipal Electric Authority of Georgia plans to price $275 million in series 2008 bonds on Sept. 29, said a calendar of upcoming sales.

The bonds will be sold on a negotiated basis, but the full details of the sale were not immediately available.

Bronson Methodist Hospital to sell $82.62 million

The City of Kalamazoo, Mich., intends to price $82.62 million revenue refunding bonds for the Bronson Methodist Hospital, according to a preliminary official statement released Friday.

The series 2008 bonds (A2//) have serial maturities from 2010 through 2018 and terms due 2024 and 2028.

Ziegler Capital Markets will manage the negotiated sale.

Proceeds will be used to refund the $59.495 million outstanding from the series 2005A revenue refunding bonds on Oct. 15 and the $11.415 million outstanding from the 2005B revenue refunding bonds on Oct. 9, as well as to fund a debt service reserve account.

Oceanographic Institution offering

The Massachusetts Health and Educational Facilities Authority plans to price $65 million revenue bonds for the Woods Hole Oceanographic Institution, according to a preliminary official statement released Friday.

The series 2008B bonds (/AA-/) will be sold through a negotiated sale managed by Banc of America Securities LLC.

Proceeds will be used to refund the series 2004A variable-rate revenue bonds on Nov. 3, pay a termination fee on the bonds' interest rate swap agreement and finance or refinance expenditures that include renovations, equipment, landscaping and other improvements.

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