New offering announcements slow in concert with market; Clark County School District sells $675 million

By Cristal Cody and Sheri Kasprzak

New York, May 15 - After the surge early this week in new sale announcements, issuers slowed down by mid-week, but that won't last long, one sellside source said Thursday.

"This week is a little slow. It just ebbs and flows," the source said. "There's going to be a constant flow of new issues until everything is refinanced with all the auctions."

The market should see refinancings continue full-force until the end of the year.

"There's no shortage of need," the source said.

There was certainly no shortage of pricings on Thursday. Leading the action was a $675 million offering of series 2008A limited tax general obligation building bonds from the Clark County School District in Nevada, said a sellside source connected to the deal.

The bonds are due from 2009 to 2028 with 5% coupons across the board. The yields range from 1.83% to 4.51%.

Merrill Lynch was the winner of the competitive bid with a 4.19602% true interest cost.

The district plans to use the proceeds to construct, equip, improve and acquire school facilities.

Kansas DOT prices bonds

The Kansas Department of Transportation revealed details Thursday of the sale of $150.87 million bonds, which priced with a 1.75% initial weekly variable interest rate.

The highway revenue bonds (Aa2/AAA/AA) included $23 million series 2008A-1 bonds, $38.9 million series 2008A-2 bonds, $595,000 series 2008A-3 bonds, $50.275 million series 2008A-4 bonds and $38.1 million series 2008A-5 bonds, said Bruce Burditt, chief of the department's financial and investment management office.

The series 2008A-1 bonds are due Sept. 1, 2013. The series 2008A-2, A-3 and A-4 bonds are due Sept. 1, 2014. The series 2008A-5 bonds are due Sept. 1, 2015.

Wachovia Bank managed the negotiated sale of the series 2008A-1, A-2 and A-5 bonds2 and Merrill Lynch & Co. managed the series 2008A-3 and A-4 bonds.

Proceeds will be used for highway capital improvement projects.

The department also plans to convert $200 million auction-rate bonds to a fixed rate in late June, Burditt said.

Nassau County authority prices

The Nassau County Interim Finance Authority in New York priced $124.245 million series 2008F variable-rate bonds on Thursday, a source said.

The pricing terms are expected to be available on Friday.

The authority also expects to price $605.055 million series 2008A-E sales tax secured bonds (Aa2/VMIG 1//) on May 30.

Goldman, Sachs & Co. is the senior manager of the negotiated sale.

Proceeds of the bonds will refund $450 million series 2004B-G and $150 million series 2004I-K sales tax-secured refunding auction-rate securities.

Pflugerville ISD sells $121.7 million

Pflugerville Independent School District in Texas priced $121.715 million unlimited tax school building bonds with a preliminary 4.6% true interest cost, the issuer said Thursday.

The series 2008 bonds (A1/A+/) priced with 3% to 5% coupons to yield 2.48% to 4.67%, chief financial officer David Andersen said. The bonds have serial maturities from 2010 through 2033.

The district's school board is expected to approve the pricing terms in a meeting Thursday night, Andersen said.

"We had used a number of five-and-a-quarter [for the true interest cost], but we did a bit better than other comparable bonds around the state," he said.

RBC Capital Markets is the senior manager of the negotiated sale.

The bulk of the proceeds will be used to purchase school sites and to construct new schools.

St. Anselm College prices revenue bonds

St. Anselm College in New Hampshire priced $62.215 million revenue bonds with an initial daily variable rate of 0.82% on Thursday, a sellside source told Prospect News.

The series 2008 bonds (Aaa//) priced through the New Hampshire Health and Education Facilities Authority. The bonds are due June 1, 2038.

The low initial rate was because of the college's good credit, and it was a "well-distributed deal," the source said. "We got a lot of demand so we could work the yield down."

Piper Jaffray managed the negotiated sale.

Proceeds will be used to refund the college's outstanding series 1998, series 1999 and series 2004 bonds and to fund the construction of a residence hall and renovation of existing facilities.

Glendale prices tax revenue bonds

Moving to other bond sales from Thursday, the city of Glendale, Ariz., priced $84.28 million in senior-lien excise tax revenue bonds, said a sellside source connected to the deal. The full terms, however, will not be available until Friday.

The bonds are due 2009 to 2033 and were sold through lead manager Banc of America Securities LLC.

Proceeds will be used to refund the city's series 2006B subordinated-lien excise tax bonds.

Washington, D.C., plans refunding

Moving to upcoming offerings, Washington, D.C., plans to price $524.695 million multimodal G.O. refunding bonds, according to a preliminary official statement.

The $60 million series 2008A, $125.775 million series 2008B, $224.3 million series 2008C and $114.62 million series 2008D bonds will price with a weekly interest rate.

The series 2008A, B and D bonds are due June 1, 2034. The series 2008C bonds are due June 1, 2027.

Banc of America Securities will manage the negotiated sale of the series 2008A and B bonds.

Morgan Stanley is the underwriter for the series 2008C bonds, and Wachovia Securities will manage the series 2008D bonds.

Proceeds will be used to refund $75.7 million series 2002A-1 bonds; $73.8 million series 2002A-2 bonds; $112.225 million series 2002B-1 bonds; $112.075 million series 2002B-2 bonds; $50 million series 2004C-1 bonds; $48.15 million series 2004C-2 bonds and $49.075 million series 2004C-3 bonds.

Case Western to price bonds

In other upcoming sales, Case Western Reserve University in Ohio is set to price $180.32 million in series 2008 private university revenue bonds, a source at the university's finance office confirmed Thursday.

The bonds (A1//) will be sold through the Ohio Higher Educational Facility Commission.

The sale includes $60 million in series 2008A bonds, $33.75 million in series 2008B-1 bonds, $33.75 million in series 2008B-2 bonds and $52.82 million in series 2008C bonds.

The bonds will be sold on a negotiated basis with Morgan Stanley as the senior manager.

Proceeds will be used to refund the university's series 2004 auction-rate bonds.

Ropers St. Francis to convert auction-rate bonds

Roper St. Francis Healthcare, also known as Care Alliance Health Services, plans to convert and reoffer $84.525 million auction-rate revenue bonds, according to a preliminary reoffering statement.

The $50 million series 2007A bonds, which priced through the South Carolina Jobs-Economic Development Authority, will be converted to a fixed rate on June 13.

The bonds have serial maturities from 2009 through 2017.

The $34.525 million series 2004B1 bonds that priced though Charleston County, S.C., will be converted on June 16.

The bonds have serial maturities from 2010 through 2024.

The two series (A3/A-/) are insured by Financial Security Assurance.

Goldman, Sachs & Co. is the senior remarketing agent.

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