Connecticut sells $400 million in G.O.s; Carolinas HealthCare prices $310.5 million in revenue bonds

By Cristal Cody and Sheri Kasprzak

New York, June 5 - The state of Connecticut led an exceptionally busy day for pricings by selling $400 million in general obligation bonds.

The offering was one of dozens sold Thursday.

"We're seeing plenty of interest out there," one sellside source said. "These things go in cycles and right now we're seeing a surge in activity. Market conditions are getting better. I think we're moving out of a particularly bad time."

Moving back to the Connecticut sale, the state sold the G.O. bonds with a 4.09% true interest cost, a source with the state said Thursday.

The series 2008A bonds (Aa3/AA/AA) have serial maturities from 2009 through 2028.

The coupon and yield ranges were not available.

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

Proceeds will be used for school construction and community conservation projects.

Carolinas HealthCare bonds

The Carolinas HealthCare System in North Carolina, legally known as the Charlotte-Mecklenburg Hospital Authority, priced $310.5 million refunding revenue bonds with a 5.106% TIC on Thursday, treasurer Mark Keener told Prospect News.

The series 2008A bonds (Aa3/AA-/) priced with 3% to 5% coupons to yield 2.87% to 4.95% on the serial maturities from 2010 through 2028, Keener said.

The term bonds in 2032, 2039 and 2047 priced with 5% coupons to yield 5.03% to 5.22%.

Citigroup Global Markets was the senior manager of the negotiated sale. Co-managers were Banc of America Securities LLC and Wachovia Bank, NA.

Proceeds will be used to refund the series 1996 variable-rate bonds and series 2003B, 2005E and 2007I auction-rate bonds.

"This will essentially eliminate our exposure and we will have exited the auction-rate market, with the exception of a planned $166.1 million auction-rate series that is scheduled to convert on July 9," Keener said.

The series 2007H bonds will be converted to a variable rate.

Kern County sells $155 million

In other pricing news, Kern County of California completed the sale of $155 million in series 2008-09 tax and revenue anticipation notes Thursday, a sellside source told Prospect News.

Bank of America won the bid for the competitive sale with a 1.60324% TIC.

The notes (/SP-1+/), due June 30, 2009, have a 3% coupon and are priced at par.

The proceeds from the sale will be used for current expenses, capital expenditures and the payment of general obligations.

Elsewhere, the Broward County School Board of Florida was expected to price $275.375 million in series 2008A certificates of participation (A1//A+) on Thursday, but calls to the issuer for details were not returned.

The COPs are due from 2012 to 2033, and proceeds will be used to construct and expand schools and facilities.

Boone Hospital bonds

Boone Hospital Center in Missouri priced $100 million revenue bonds with a 5.3557% TIC, a sellside source said Thursday.

The series 2008 fixed-rate revenue bonds (A3//A) priced with 3% to 5.63% coupons to yield 2.8% to 5.25%.

The bonds were sold through Boone County, Mo., which approved the bond purchase agreement on Thursday, the sellside source told Prospect News.

The bonds have serial maturities from 2009 through 2021, an intermediate term in 2028, a serial maturity in 2029 and a term in 2038.

"We had buyers seeking different types of structure so we sold to a wide variety of investors, from institutions and mutual funds to insurance companies to individual investors through their retail brokers," the sellside source said.

The complex structure offered more incentive for investors.

"Different investors were looking for different parts of the yield curve, and this was a high-quality piece of paper. It was all new money and not some restructuring," he said.

Stern Brothers & Co. managed the negotiated sale.

Proceeds will be used to finance a portion of the construction of the hospital's patient bed tower and parking structure projects.

San Diego County bonds

San Diego County, Calif., priced $75 million tax and revenue anticipation notes with a 3.5% coupon to yield 1.57% on Thursday, the issuer told Prospect News.

"We went in with the 1.6% [yield] and had our order filled eight times over, so we were able to go back in with the 1.57%," finance director Ebony Shelton said. "Investors were looking to do something to take advantage of the stability here. This is the lowest cost we've had in years."

The series 2008A notes (MIG 1/SP-1+/F-1+) have a 12-month maturity.

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

Proceeds will be used to fund the seasonal cash flow needs of the county.

Elsewhere, Tempe, Ariz., priced $66.365 million G.O. bonds with a 4.187% TIC on Thursday, the issuer said in an interview.

The series 2008A bonds (Aa1//AAA) priced with 3.375% to 4.375% coupons to yield 1.9% to 4.57%, said Jerry Hart, financial services manager.

The bonds have serial maturities from 2009 through 2028.

Robert W. Baird & Co. was the successful bidder in the competitive sale out of six bidders.

Proceeds will be used to finance water and sewer infrastructure, street and public safety improvements.

Virginia Resources offering

The Virginia Resources Authority also priced $72.92 million infrastructure revenue bonds for the Virginia Pooled Financing Program on Thursday, a source said.

The final terms on the $50.075 million series 2008A senior bonds (Aaa) and $22.845 million series 2008A subordinate bonds (Aa2) were not available before press time.

Morgan Keegan was the senior manager of the negotiated sale.

Proceeds will fund loans to eight municipal participants for a variety of projects and to refund a portion of the authority's series 1997 and 1998 bonds.

Rockwood district prices bonds

In other pricing news Thursday, the Rockwood R-6 School District of Missouri priced $70 million in series 2008B G.O. bonds on Thursday, said a sellsider connected to the deal.

The bonds are due from 2009 to 2022 with coupons from 3.25% to 5%. The yields range from 2% to 4.14%.

Robert W. Baird & Co. was the winning bidder in the competitive sale.

Proceeds from the deal will be used to construct and renovate classrooms, acquire and construct new technology and technology infrastructure and install additional safety measures.

CollegeInvest bond sale

Also on Thursday, CollegeInvest had been expected to close a $188.3 million offering of series 2008I-A education loan revenue bonds (/AA/A-1+/AA+/F-1+). The bonds were sold through the Department of Higher Education of the State of Colorado.

Calls to the issuer for the initial coupon were not immediately returned. The bonds, due Dec. 1, 2042, bear interest at the weekly rate.

Proceeds will fund future eligible loan acquisitions, the redemption of refunded bonds, a deposit to a revenue fund, a deposit to a capitalized interest account and a deposit to a debt service reserve fund.

The New York State Housing Finance Agency was also expected to price bonds on Thursday. The terms of the $150 million offering of series 2008 state personal income tax revenue bonds (Aaa/AA-/) were not immediately available.

Citigroup Global Markets was the lead manager for the negotiated deal.

The bonds are due 2018 to 2038, and the proceeds will be used to repay the state for amounts advanced to finance housing assistance programs administered by public benefit corporations.

Georgia's $522.49 million G.O.s

Moving to upcoming bond offerings, Georgia intends to price $522.49 million G.O. bonds in a competitive sale on June 12, according to a preliminary official statement.

The bonds will price through the Georgia State Financing and Investment Commission.

The $53.675 million series 2008A1 bonds are due in 2013, and the $2.93 million series 2008A2 bonds are due in 2018.

The $465.885 million series 2008B bonds have serial maturities from 2009 through 2028.

Public Resources Advisory Group is the state's financial adviser.

Proceeds will be used for capital projects, including for the departments of agriculture, corrections, natural resources and juvenile justice.

Connecticut G.O.s set

The state of Connecticut is also planning a large G.O. bond sale. The state expects to price $389 million G.O. bonds on June 17, a source with the state said Thursday.

The series 2008B bonds (Aa3/AA/AA) have serial maturities from 2009 through 2028.

Morgan Stanley is the senior manager of the negotiated sale.

Proceeds will be used for the state's school construction grant program.

In other coming sales, the California Statewide Communities Development Authority expects to price $273.535 million tax and revenue anticipation notes on Monday, a source said Thursday.

The series 2008A1 notes (MIG 1//) will be sold for a pool that includes 12 cities, nine counties and four special districts.

Financial Security Assurance has a limited insurance policy on 15% of the notes.

JPMorgan will manage the negotiated sale.

Thomas Health bond sale

Thomas Health System tentatively plans to price $145 million revenue bonds on June 17, a source with the issuer said Thursday.

The series 2008 bonds will price through the West Virginia Hospital Finance Authority.

The bonds are due Oct. 1, 2043.

The issuers have not applied for a credit rating on the bonds, according to the preliminary official statement. The health group said that by foregoing the ratings, the bonds are believed to bear interest at higher rates.

Raymond James will manage the negotiated sale.

Proceeds will be used to refinance a $45 million loan used to acquire St. Francis Hospital, construct a six-story hospital pavilion to offer all private rooms to acute and obstetric patients and to purchase equipment.

Ohio Housing bonds

In other upcoming sales, the Ohio Housing Finance Agency intends to sell $125 million in series 2008 residential mortgage revenue bonds, according to a preliminary official statement.

The bonds (Aaa/VMIG1//) will be sold on a negotiated basis with Goldman, Sachs & Co. as the senior manager. Goldman Sachs is the sole manager for the series 2008E bonds.

The sale includes $80 million in series 2008D bonds and $45 million in series 2008E bonds. The series 2008D bonds are due from 2010 to 2018 with term bonds due 2023, 2028 and 2031. The 2008E bonds are term bonds due 2039.

The sale is expected to take place in June, but no exact pricing date could be determined by press time.

Proceeds will be used for down payment assistance grants and to make a deposit to an acquisition account.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.