California sets yields on $4 billion in RANs at 3.75%-4.5%; Ohio brings $240 million G.O.s

By Cristal Cody and Sheri Kasprzak

New York, Oct. 14 - It was back to business as usual on Tuesday following the Columbus Day holiday, with several offerings coming to market and the pricing terms of others revealed.

Leading the pricing action was the State of California, which reportedly attracted strong retail interest at the start of a two-day retail sale ahead of Thursday's pricing on $4 billion in revenue anticipation notes.

The state sold $1.465 billion of the notes on Tuesday, according to the state treasurer's office.

Earlier in the day, California set the yields on the series 2008-09A revenue anticipation notes (/SP-1/F1) at 3.75% to 4.5%.

The notes due May 20, 2009 will price to yield 3.75% to 4%, and the notes due June 22, 2009 will price to yield 4.25% to 4.5%.

Banc of America Securities and Goldman, Sachs & Co. are the senior managers of the negotiated sale.

Proceeds will be used for the state's cash flow management needs.

Ohio sells $240 million

Elsewhere in pricing action, the State of Ohio released the pricing terms Tuesday on $240 million in series 2008A infrastructure improvement general obligation bonds.

The bonds (Aa1/AA+/AA+) were sold through senior managers Citigroup Global Markets and Wachovia Bank.

The bonds are due from 2009 to 2018 with term bonds due 2020, 2023 and 2028, according to an official statement.

The serials have coupons from 3% to 5% and yields from 2.3% to 4.7%.

The 2020 bonds have a 5% coupon to yield 5.05%. The 2023 bonds have a 5.375% coupon to yield 5.42%, and the 2028 bonds have a 5.375% coupon to yield 5.5%.

The state intends to sell another $56.74 million in series 2008B infrastructure improvement G.O. refunding bonds, but the pricing date for those bonds has not been set.

Proceeds will be used for financing local subdivision capital improvement projects approved by the state General Assembly.

California Public Works bonds ahead

Looking ahead in the month, the Public Works Board of the State of California intends to price $163.3 million in previously announced lease revenue bonds Oct. 30, according to a sale calendar.

The sale includes the series 2008H bonds for the Department of Developmental Services, the series 2008I bonds for the Trustees of the California State University and the series 2008J bonds for the Department of Mental Health.

Oklahoma power sale this week?

Also this week, the state of Oklahoma had planned to decide late Tuesday whether to price $110 million revenue bonds this week for the Oklahoma Municipal Power Authority, said Jim Joseph, adviser for the Oklahoma State Bond Advisor's Office.

"We're having a pricing call to determine whether or not to go this week," he said.

"We want to be sure we're not selling into a bad market. We've done everything we can to get them the best rate."

The series 2008 power supply bonds are expected to price through a negotiated sale managed by JPMorgan.

Washington University deal

Also coming up this week, the Washington University of St. Louis in Missouri is tentatively slated to sell its previously announced $190 million in series 2008A educational facilities revenue bonds Wednesday, said a calendar of upcoming deals.

The bonds (Aaa/AAA/) will be sold on a negotiated basis with JPMorgan and Morgan Stanley as the senior managers.

Proceeds will be used to finance, refinance or reimburse the university for the construction of additions or renovations to the university's educational facilities and health facilities.

Another deal set for pricing Wednesday is a $136.2 million sale of unlimited tax school building and refunding bonds from the Frisco Independent School District in Texas, according to a sellside source.

"We may have that information [pricing terms] Wednesday afternoon, depending upon market conditions," the source said.

The bonds are being sold on a negotiated basis with First Southwest Co. as the senior manager.

Proceeds will be used to finance various school facility projects and to refund a portion of the district's outstanding debt for interest savings.

New York's MTA to price BANs

Another deal scheduled for pricing this week is an offering of revenue bond anticipation notes from the Metropolitan Transportation Authority of New York. The MTA is expected to price $500 million in series 2008 revenue BANs at some point this week, but no exact pricing date could be determined.

The bonds (A2//F1+) will be sold through senior manager JPMorgan.

The offering includes $250 million in series 2008A BANs and $250 million in series 2008B BANs.

Proceeds will be used to finance capital programs.

Yet another deal tentatively scheduled for this week comes from the Pennsylvania Turnpike Commission, which hopes to price $325 million in debt securities, according to a calendar of upcoming sales.

The full details of the offering, including the exact pricing date, could not be confirmed Tuesday, but the bonds are expected to price through senior manager Citigroup Global Markets.

Wake County sale ahead

A healthy crop of new offerings is expected to spring up next week, led by Wake County in North Carolina, which might price a portion of its previously announced $424.365 million G.O. bonds Oct. 22, according to a source close to the deal.

The county is expected to price $354.5 million in series 2008A G.O. public improvement bonds (//F1+) Oct. 22.

The bonds will be sold competitively with Waters and Co. as the financial adviser.

The 2008A bonds are due from 2016 to 2026.

The county also expects to price $69.865 million in series 2008B G.O. refunding bonds, but no pricing date has been set for that offering.

Proceeds will be used to refund the county's series 1998 public improvement bonds and to finance the acquisition, construction, expansion and renovation of library, school and community college facilities.

Michigan to bring $367.8 million

Also coming up next week, the State of Michigan expects to price $367.8 million in G.O. school loan refunding bonds Oct. 21, a source said Tuesday.

The $145.75 million series 2008A bonds have serial maturities from 2009 through 2011 and from 2020 through 2022.

The $222.05 million series 2008B bonds have serial maturities from 2014 through 2020.

Merrill Lynch & Co. is the senior manager of the negotiated sale.

The proceeds will be used to refund the series 1998, 2005B and 2005C bonds.

The Clark County Water Reclamation District in Nevada intends to price $250 million in G.O. water reclamation bonds through a competitive sale Oct. 21, according to a preliminary official statement.

The series 2008 bonds (Aa2/AAA/) have serial maturities from 2013 through 2038.

Hobbs, Ong & Associates and Public Financial Management are the financial advisers.

The proceeds will be used to construct, reconstruct, improve and extend the district's sanitary sewer system.

Deschutes hospital deal

Also on Oct. 21, the Hospital Facility Authority of Deschutes County in Oregon expects to price $83.68 million revenue refunding bonds for Cascade Healthcare Community, according to a sale calendar.

The series 2008 bonds will be sold through a negotiated sale managed by Morgan Stanley.

The proceeds will be used to refund, redeem or defease the series 2005A revenue bonds and to pay financing and legal expenses for any termination payment required on the refunded bonds.

Harris County's refunding sale

Coming up, Harris County in Texas intends to price $203 million permanent improvement refunding bonds sometime between Oct. 21 and Oct. 23, a source with the issuer said Tuesday.

The series 2008C bonds (Aa1/AAA/) have serial maturities from 2010 through 2028.

Loop Capital Markets LLC is the senior manager of the negotiated sale.

Proceeds will be used to defease the county's series A1 and series D G.O. commercial paper notes.

San Jose Redevelopment sale

Looking a bit further ahead, the Redevelopment Agency of the City of San Jose in California plans to price $100.5 million in series 2008 tax allocation bonds Oct. 28, said a calendar of upcoming offerings.

The bonds (//A-) will be sold on a competitive basis.

The sale includes $30.1 million in series 2008A-T taxable bonds and $70.4 million in series 2008B bonds.

Proceeds will be used for redevelopment projects.

Health-care bonds abound

Several hospital offerings are coming down the pipeline in the coming weeks.

The latest round of health-care sales is led by Providence Health, which plans to price $350 million revenue bonds through the California Health Facilities Financing Authority, according to a preliminary official statement.

The series 2008C bonds (Aa2/AA/AA) have serial maturities from 2009 through 2028 and terms due in 2033 and 2038.

Merrill Lynch & Co. will manage the negotiated sale.

The proceeds will be used to refund the outstanding series 2001A, 2001B and 2001C insured variable-rate revenue bonds for Providence Health and the series 1998 insured revenue bonds for Little Co. of Mary Health Services and to repay a loan from U.S. Bank, NA.

The Bon Secours Health System plans to price $293.145 million revenue refunding bonds in six tranches, according to preliminary official statement.

The sale includes $30.32 million series 2008D bonds through the South Carolina Jobs-Economic Development Authority, $31.415 million series 2008D1 bonds and $93.135 million series 2008D2 revenue refunding bonds through the Economic Development Authority of Hanover County in Virginia, $53.805 million series 2008D bonds through the Economic Development Authority of Henrico County in Virginia, and $40.285 million series 2008D1 bonds and $44.185 million series 2008D2 revenue refunding bonds through the Economic Development Authority of the City of Norfolk, Va.

The bonds are due in 2025 and will price initially with a weekly interest rate.

Citigroup Global Markets will manage the negotiated sales.

The proceeds will be used to refund or purchase outstanding variable-rate bonds.

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