Institutional Debt 11-01-2010

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					                         Institutional Debt

              The Bond Daily


1 | I n s t i t u t i o n a l   D e b t   |   N o v e m b e r   1 ,   2 0 1 0  
                                                                           Headlines                                  Page
                                                                           Municipal Revenue Growth Potentially
                                                                           Stunted For Next Five Years, Survey
                                                                           Fitch Affirms Wells Fargo Home Equity
                                                                           Servicer Ratings
                                                                           Some CMBS in Special Servicing Might
                                                                           Not Default
                                                                           Moody's Downgrades The New School on
                                                                           $350 Million Offering
                                                                           Forty Classes from Five CMBS Transac-
                                                                           tions Downgraded
                                                                           Fitch Upgrades Sub Classes of a CarMax
                                                                           Christiana Care Health Services Floting
                                                                           $100 Million in Rev Bonds
                                                                           Positive Operating Environment May
                                                                           Lead to Russian Upgrades
                                                                           Colgate Prices $438 Million in MTNs        8
                                                                           Huntsman Adds $180 Million in Sub
                                                                           Broadcom Prices $700 Million in Notes      9
                                                                           Boyd Gaming Prices $500 Million in
                                                                           Notes After Downgrade
                                                                           Owensboro (KY) Electric System Issuing     9
                                                                           Bryn Mawr College Set to Issue $27.9
                                                                           Million in Bonds
                                                                           Simmons Food Upsizes Private Deal          10
                                                                           Univ. of North Ala. Readying $52 Million
                                                                           in Bonds
                                                                           Mt. Sinai School of Medicine Issuing
                                                                           $96.4 Million in Rev Bonds
                                                                           Tulsa Set to Issue $70 Million in GOs      12
                                                                           Maturities Should Be Manageable for US
                                                                           Corporations Over The Next Two Years
                                                                           Arrow Electronics Prices $500 Million in
                                                                           Two Parts
                                                                           Netflix Ratings Upgraded                   13
                                                                           Data                                       14

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Municipal Revenue Growth Potentially                                       defaults between $2-$5 billion, 11 percent that
Stunted For Next Five Years, Survey                                        expect defaults between $5-$10 billion and 3
                                                                           percent that forecast more than $10 billion in
Mike Scorelle 2010-11-01                                                   defaults.

Municipal revenue growth could be hindered                                 "While state and local governments have seen
for years to come according to a new survey                                steep declines in revenues, the risk of defaults
of municipal industry professionals conducted                              on bonds issued by these municipalities gen-
by RBC Capital Markets. However, despite                                   erally remains well below similarly rated cor-
the negative outlook for municipal revenue                                 porate debt," said Chris Mauro, director of
growth, those surveyed expect a relatively low                             Municipal Bond Research at RBC Capital
rate of defaults on U.S. municipal securities in                           Markets. "Despite that fact that municipal
2011.                                                                      credit quality has deteriorated in this reces-
                                                                           sion, the public perception that municipal
Among the more than 100 municipal industry                                 bonds have become a riskier asset class to
professionals surveyed, nearly half (46 per-                               own relative to corporate debt is simply not
cent) expect another five years or more will                               true."
pass before state and local government reve-
nues return to pre-crisis levels. This compares                            In fact, 81 percent of those surveyed believe
to 29 percent and 22 percent that expect it will                           public perception of the credit quality of the
take four and three years, respectively. Only                              municipal market is too negative.
three percent see a rebound in revenues occur-
ring within two years.                                                     Almost half (47 percent) of municipal indus-
                                                                           try professionals cite infrastructure and trans-
Driving concerns about revenues beyond the                                 portation as the most pressing financing need
lingering recession is the fact that nearly half                           for municipalities. By comparison, pensions
(49 percent) of respondents expect the level of                            were cited by 32 percent as the most pressing
federal assistance for state and local govern-                             financing need and education came in third
ments to decline over the next three years,                                with 13 percent. Only eight percent of respon-
while another 27 percent anticipate no change                              dents said that healthcare was the top financ-
in the level of federal assistance. This com-                              ing need.
pares to 24 percent that expect an increase.
                                                                           "There is broad national consensus that many
While municipal industry professionals antic-                              of our nation's roads, bridges and tunnels need
ipate pressure on municipal revenues to lin-                               to be replaced or significantly repaired," said
ger, they do not expect it to lead to an increase                          Chris Hamel, head of U.S. Municipal Finance
in municipal bond defaults in the coming year.                             at RBC Capital Markets. "Given the severity
Defaults on U.S. municipal securities totalled                             of the recession, it is clear that an additional
$8 billion in 2008, $6.9 billion in 2009 and                               funding source is necessary to maintain, let
$1.6 billion in 2010 year-to-date, according to                            alone upgrade, our nation's infrastructure."
the Distressed Debt Securities Newsletter.
When asked to forecast the level of defaults                               In California, budget issues are front and cen-
on municipal securities in 2011, 55 percent                                ter as voters weigh in next month on Proposi-
expect to see less than $2 billion in defaulted                            tion 25, a ballot measure that allows lawmak-
debt. This compares to 31 percent that expect
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ers to pass budgets more quickly with a sim-                               WFHE is headquartered in San Francisco, CA
ple majority. California is currently one of on-                           and is an originator and servicer of HELOC
ly three states that requires a supermajority                              and second lien fixed rate products. The com-
vote of the Legislature to pass a state budget                             pany operates in two fulfillment centers and
(Arkansas and Rhode Island are the others).                                four servicing locations throughout the U.S.
Six-in-ten municipal industry professionals                                and utilizes retail, consumer direct and broker
believe Proposition 25 will increase the effi-                             channels to drive its origination platform. As
ciency of the California state budget.                                     of June 30, 2010 WFHE serviced approx-
                                                                           imately 2.46 million loans totaling $135.5 bil-
                                                                           lion, representing an increase over the 1.39
                                                                           million loans totaling $80.5 billion in the prior
Fitch Affirms Wells Fargo Home Equity                                      review period.
Servicer Ratings
                                                                           The portfolio is further broken down by prod-
Mike Scorelle 2010-11-01                                                   ucts with HELOC totaling $91.3 billion con-
                                                                           sisting of 1,761,780 loans and 699,046 first
Fitch Ratings affirmed the rating of U.S. resi-                            and second lien closed-end products totaling
dential primary servicer ratings for Wells Far-                            $44.2 billion.
go Home Equity Group, (WFHE) a division of
Wells Fargo Bank, N.A.                                                     WFHE has completed its acquisition of Wa-
                                                                           chovia Bank, N.A. and is in the process of fi-
The following ratings were affirmed:                                       nalizing the integration of the servicing plat-
                                                                           forms. The servicer converted the legacy Wa-
--U.S Residential Primary servicer rating for                              chovia first and second closed-end products
home equity line of credit (HELOC) at 'RPS1-                               onto its servicing platform effective June 4,
';                                                                         2010 and intends to complete conversion of
                                                                           the remainder legacy Wachovia HELOC
--U.S. Residential Primary specialty servicer                              products in 2011. The servicer also completed
rating for second lien product at 'RPS1-'.                                 several management and organizational
                                                                           changes so as to enhance collaboration across
The primary servicer rating actions are based
                                                                           teams and ensure a seamless integration of the
on WFHE's highly developed control envi-
                                                                           systems and business operations.
ronment, experienced and tenured manage-
ment team, and continued enhancements to its                               In addition, as part of its reorganization, the
technology and default management                                          servicer discontinued the processing of credit
processes. The ratings also reflect the finan-                             card and non real estate functions and is trans-
cial strength of WFHE's ultimate parent,                                   ferring these portfolios to other lines of busi-
Wells Fargo & Co., (WFC; rated 'AA-', Out-                                 ness in order to focus solely on its home equi-
look Stable by Fitch). In addition, the analysis                           ty platform.
was conducted in accordance with Fitch's cri-
teria 'Rating U.S. Residential Mortgage Ser-                               Fitch believes that WFHE has an experienced
vicers', dated Nov. 29, 2006 and 'Global Rat-                              and tenured management team, highly devel-
ing Criteria for Structured Finance Servicers'                             oped control environment, and appropriate
dated Aug. 16, 2010.                                                       systems and technology to effectively manage

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its current servicing portfolio. However, Fitch                            range in balance from $21.5 million to $187.2
will continue to monitor the servicer while it                             million.
completes the Wachovia integration and its
ability to maintain satisfactory metrics for av-                           Fitch expects loan defaults to continue esca-
erage hold time, abandonment, and right party                              lating through 2011. Over 3,000 loans with an
contact rates.                                                             outstanding balance of approximately $59.4
                                                                           billion in Fitch's portfolio were classified as
                                                                           specially serviced through the end of last
Some CMBS in Special Servicing Might Not

Missy Larabie 2010-11-01                                                   Moody's Downgrades The New School on
                                                                           $350 Million Offering
While most U.S. CMBS loans transferring to
special servicing are driven by borrowers                                  Mike Scorelle 2010-11-01

looking to prevent future defaults, select re-
cent transfers are showing something else en-                              Moody’s downgraded the ratings of The New
tirely, according to Fitch Ratings.                                        School (NY) as the university prepares to sell
                                                                           $350 million in bonds issued through the
Most CMBS loans now in special servicing                                   Dormitory Authority of New York. The bonds
are there due to an 'imminent default', which                              are expected to sell November 17, 2010.
is an opaque, 'catch-all' classification that pro-                         Moody’s downgraded the rating from A2 to
vides little color on what circumstances preci-                            A3.
pitated the transfer. Fitch has been closely
monitoring the transfer of commercial mort-                                “The downgrade reflects the nearly three-fold
gage loans to special servicing to identify                                increase in debt associated with the current
trends and assess market conditions. Some of                               borrowing which will result in high balance
the results, according to Senior Director                                  sheet and operating leverage combined with
Adam Fox, are surprising.                                                  the inherent construction and operational risks
                                                                           associated with the major capital project fi-
“While some borrowers are taking proactive                                 nanced with Series 2010 bond proceeds. The
measures to avert defaults on soon-to-mature                               decision to lower the rating does not change
loans, others are simply looking to capitalize                             Moody's assessment that The New School has
on current market conditions,” said Adam                                   a strengthening market niche and strong go-
Fox, Senior Director. “Some of these more                                  vernance and management. The rating outlook
opportunistic measures are designed to extend                              is stable at the lower rating level reflecting the
a loan term, bring down leverage or save on                                university's core credit strengths of a favora-
out of pocket expenditures.”                                               ble Manhattan location, growing tuition reve-
                                                                           nue, conservative budgeting practices, and
Twenty-one loans with balances greater than                                lack of additional borrowing plans,” Moody’s
$20 million transferred to special servicing                               said in a statement.
during October. The loans, the majority of
which correspond to 2005-2007 vintages,                                    Bond proceeds for the Revenue Bonds, Series
                                                                           2010 will be used to finance the construction
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of a University Center, including a dormitory                              Fitch Upgrades Sub Classes of a CarMax
with 608 beds, the renovation of three floors                              Transaction
in a leased building, refund all or a portion of
the Series 1999 and 2001 bonds, and pay costs                              Mike Scorelle 2010-11-01

of issuance.
                                                                           Fitch Ratings has upgraded two classes of
                                                                           CarMax Auto Owner Trust 2009-2 and af-
                                                                           firmed two classes as part of its ongoing sur-
Forty Classes from Five CMBS Transac-                                      veillance process.
tions Downgraded
                                                                           The affirmations are a result of continued
Missy Larabie 2010-11-01                                                   available credit enhancement in excess of
                                                                           stressed remaining losses. The collateral con-
Standard & Poor's Ratings Services recentky                                tinues to perform within Fitch's base case ex-
lowered its ratings on 40 classes of certificates                          pectations. Currently, under the credit en-
from five U.S. commercial mortgage-backed                                  hancement structure, the securities can with-
securities (CMBS) transactions.                                            stand stress scenarios consistent with the rat-
                                                                           ing categories and still make full payments of
“We lowered our ratings due to interest short-                             interest and principal in accordance with the
falls. Fourteen of these classes experienced                               terms of the documents.
shortfalls for four months or less and are at an
increased risk of experiencing shortfalls in the                           As before, the ratings reflect the quality of
future. If these shortfalls continue, we will                              CarMax Business Services, LLC (CarMax
likely further downgrade these classes to 'D                               BS) retail auto loan originations, the sound
(sf)'. We downgraded 26 of these classes to 'D                             legal structure of the transaction, and the ade-
(sf)' because we expect these interest short-                              quate servicing provided by CarMax BS.
falls to continue,” the rating agency said in a
statement.                                                                 The rating actions are as follows:

The following transactions were downgraded:                                --Class A-2 affirmed at 'AAAsf'; Outlook Sta-
Bear Stearns Commercial Mortgage Securities
Trust 2007-PWR15                                                           --Class A-3 affirmed at 'AAAsf'; Outlook Sta-
GS Mortgage Securities Trust 2006-GG6
                                                                           --Class A-4 affirmed at 'AAAsf'; Outlook Sta-
JPMorgan Chase Commercial Mortgage Se-                                     ble;
curities Trust 2006-LDP8
                                                                           --Class B upgraded to 'AAsf' from 'A+sf';
ML-CFC Commercial Mortgage Trust 2006-1                                    Outlook to Positive;

Morgan Stanley Capital I Trust 2007-HQ13                                   --Class C upgraded to 'A+sf' from 'BBB+sf';
                                                                           Outlook to Positive.

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Christiana Care Health Services Floting                                    treatment bays; a renovated radiology suite; a
$100 Million in Rev Bonds                                                  new outpatient psychiatric unit; a new hemo-
                                                                           dialysis unit; and a redesign of access and en-
Dan Mitsner 2010-11-01                                                     try points to the Wilmington Hospital; and (b)
                                                                           a new medical office building; (2) finance or
Christiana Care Health Services (DE) is pre-                               reimburse a portion of the costs of the con-
paring $100 million in bonds through two se-                               struction and equipping of a single-story free-
ries. The new bonds are expected to sell on                                standing Emergency Department on Health
November 11, 2010.                                                         Services' existing Middletown, Delaware site;
                                                                           (3) finance the cost of certain equipment and
Moody's Investors Service has assigned                                     other planned capital expenditures at the
Aa3/VMIG 1 ratings to $75 million of Series                                Christiana Hospital or other sites of Health
2010B variable rate demand bonds and $25                                   Services; and (4) pay the costs of issuing the
million of Series 2010C variable rate demand                               Series 2010 Bonds
bonds to be issued by the Delaware Health
Facilities Authority. The tender feature of the                            The stable outlook reflects our belief that
Series 2010B&C bonds will be supported by                                  CCHS will maintain sound operating margins
CCHS's own liquidity. The Series 2010B                                     and healthy cash flow providing for strong
bonds will be issued initially in a weekly rate                            coverage of the system's increasing, albeit
mode and the Series 2010C will be issued in-                               modest, debt burden
itially in a commercial paper mode. The rating
outlook remains stable.

“Simultaneously, we are assigning a VMIG 1                                 Positive Operating Environment May Lead
short-term rating to the outstanding Series                                to Russian Upgrades
2008A&B variable rate demand bonds, the
tender feature supported by CCHS's liquidity,                              Mike Scorelle 2010-11-01
which currently only carry Aa3 long-term rat-
ings. Our rating action includes our expecta-                              Fitch Ratings believes that the increasingly
tion that CCHS intends to incur up to $27.2                                positive operating environment in Russia may
million of additional parity debt through a                                translate into rating upgrades in 2011. This
bank qualified borrowing,” Moody’s said in a                               reflects the operational and financial prospects
statement.                                                                 for Russian corporates which are now general-
                                                                           ly more favourable than in 2009.
The Series 2010 bonds will be used to: (1)
finance or reimburse CCHS for a portion of                                 The background of continued uncertainty
the costs of (a) the expansion and improve-                                about the global economy, and possible fall-
ment of The Wilmington Hospital consisting                                 out from currency and commodity price
of: a new nine story patient care tower includ-                            movements, will continue to act as a drag on
ing the addition of new single patient rooms;                              positive rating momentum, however.
new operating rooms; new preparation, hold-
ing and recovery areas; a new Sterile                                      Currently 61% of Fitch's 46 corporate issuer
Processing Department serving the operating                                ratings in Russia have Stable Outlooks and
rooms and emergency department; an expan-                                  28% Positive. The remaining 11% are on
sion of the emergency room department                                      Negative Outlook, including the 7% with
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Negative Outlooks reflecting company-                                      was an addition to the $350 million in subor-
specific factors.                                                          dinated notes placed in September.

                                                                           Standard & Poor's Ratings Services assigned
                                                                           its 'B-' issue rating and '6' recovery rating to
Colgate Prices $438 Million in MTNs                                        Huntsman International LLC's $180 million
                                                                           senior subordinated notes, indicating expecta-
Mike Scorelle 2010-11-01                                                   tions of negligible recovery (0%-10%) in the
                                                                           event of a payment default. The 'B-' issue rat-
Colgate-Palmolive priced $438 million in me-                               ing is two notches below the 'B+' corporate
dium term notes on Friday. The sale was in                                 credit ratings on Huntsman International LLC
two parts.                                                                 and its parent Huntsman Corp. The outlooks
                                                                           on both corporate credit ratings are stable.
The $188 million five-year notes priced at
99.248 with a coupon of 1.375 percent. The                                 Moody’s rates the notes B3.
10-year piece priced at 98.330 with a coupon
of 2.95.                                                                   “Huntsman intends to use the net proceeds to
                                                                           redeem all $188 million principal amount of
“The net proceeds from the sale of the Notes                               its outstanding 7 7/8% senior subordinated
will be used by Colgate to retire commercial                               notes due 2014, including the payment of ac-
paper which was issued by Colgate for gener-                               crued interest and redemption premiums,” the
al corporate purposes. As of October 28,                                   company said in a statement.
2010, Colgate’s outstanding commercial pa-
per had a weighted average interest rate of                                Huntsman International LLC is wholly owned
0.19% with maturities ranging from 1 day to                                by its parent Huntsman Corp., which is a
26 days,” the company said in a regulatory                                 holding company with diverse chemical oper-
filing.                                                                    ations that generated annual sales of approx-
                                                                           imately $8.6 billion for the 12 months ended
Bank of America Merrill Lynch, Citi, Gold-                                 June 30, 2010.
man Sachs and RBS sold the five year piece,
Bank of America Merrill Lynch, Citi, BNP                                   “Through a strategic emphasis on increasing
Paribas andDeutsche Bank sold the 10-year                                  its performance chemicals business,
part.                                                                      Huntsman has decreased reliance on commod-
                                                                           ity product categories and positioned the
                                                                           company among the largest differentiated
                                                                           chemical companies worldwide. A key seg-
Huntsman Adds $180 Million in Sub Notes                                    ment for the company is polyurethane chemi-
                                                                           cals, which constituted about 38% of the
Zoe McGuire 2010-11-01
                                                                           company's 2009 revenue and about 62% of
                                                                           reported segment EBITDA. Key products in-
Huntsman International priced $180 million in
                                                                           clude MDI and its input propylene oxide,
senior subordinated notes last week. The notes
                                                                           which Huntsman also produces. Other seg-
priced at 108 with a coupon of 8.625 in the
                                                                           ments consist of performance products; ad-
144a private placement market. The issuance
                                                                           vanced materials; textile effects; and pig-

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ments, which includes titanium dioxide,” S&P                               Boyd Gaming Prices $500 Million in Notes
said in a statement.                                                       After Downgrade

Citi was the sole underwriter on the issue.                                Mike Scorelle 2010-11-01

                                                                           Boyd Gaming sold $500 million in notes
                                                                           through a 144a private placement late last
Broadcom Prices $700 Million in Notes                                      week. The eight-year notes priced at par with
                                                                           a coupon of 9.125 percent.
Mike Scorelle 2010-11-01

                                                                           The notes are rated Caa1 by Moody’s and B
Broadcom Corp recently tapped the 144a pri-                                by Standard & Poor’s after the company re-
vate placement market and priced $700 mil-                                 ceived a one-notch downgrade.
lion in senior notes.
                                                                           "The rating downgrade reflects our expecta-
The deal was increased from $600 million and                               tion that credit measures will remain at levels
priced in two parts.                                                       more consistent with the 'B' corporate credit
                                                                           rating, given our current outlook for the fourth
The three-year notes priced at 99.694 with a                               quarter of 2010 and 2011," explained Stan-
coupon of 1.50 percent.                                                    dard & Poor's credit analyst Melissa Long.
The five-year piece priced at 99.444 with a                                S&P added that the rating reflects Boyd's high
coupon of 2.375 percent.                                                   debt leverage and a portfolio consisting of
                                                                           some second-tier assets in competitive mar-
"We expect Broadcom will maintain a minim-                                 kets. Boyd's geographically diverse portfolio,
al financial risk profile, characterized by a                              an experienced management team, and mod-
conservative financial policy and a strong li-                             erate free operating cash flow generation par-
quidity position as a buffer to industry volatil-                          tially offset these factors.
ity," said Standard & Poor's credit analyst Jo-
seph Spence.                                                               The transaction was led by JP Morgan, Bank
                                                                           of America Merrill Lynch, Wells Fargo Se-
Standard & Poor’s has a BBB+ rating on the                                 curities, Deutsche Bank, RBS, Barclays and
issuance, while Moody’s rates the notes A2.                                Commerzbank.
"We also view Broadcom as having signifi-
cant customer and product concentrations as
well as margins below certain peers," added                                Owensboro (KY) Electric System Issuing
Mr. Spence, "so as a result, we view its busi-
ness risk profile as satisfactory."                                        Dan Mitsner 2010-11-01

Bank of America Merrill Lynch and JP Mor-                                  Owensboro (KY) Electric System is set to is-
gan led the offering.                                                      sue $52 million in new revenue bonds through
                                                                           three series. The bonds are expected to sell on
                                                                           November 2, 2010.

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Moody's assigns an A3 rating to the$9.9 mil-                               ries 2002 bonds and pay costs related to is-
lion Electric System Revenue Bonds Series                                  suance.
2010A, $31.2 million Electric System Reve-
nue Bonds Series 2010B, and $9.9 million                                   Moody’s rates the new issuance Aa2.
Electric System Revenue Bonds Series
2010C. Concurrently, Moody's has down-                                     “Moody's expects Bryn Mawr to maintain
graded the system's outstanding parity electric                            healthy student demand and a stable market
revenue debt to A3 from A2. The outlook has                                position as a nationally recognized private in-
changed to negative from stable.                                           stitution located in Bryn Mawr, Pennsylvania.
                                                                           Founded as an all-woman's institution, Bryn
“The A3 rating reflects the system's transfor-                             Mawr continues to adhere to the guiding prin-
mational change in operations as it terminated                             ciples of its founders and remains a challeng-
a long term contract with Kentucky Utilities                               ing liberal arts institution. Of the College's
for the purchase of excess power generated                                 1,588 FTE students, approximately 81% are
within the system significantly increasing its                             undergraduates. Going forward the College
risk and exposure to the wholesale power                                   will continue to slightly decrease the focus on
market; resource concentration; an adequate                                its graduate student base as the College re-
financial position; a manageable capital plan                              mains committed to the liberal arts expe-
and weak bond holder protections,” Moody’s                                 rience,” Moody’s said in a statement.
said in a statement.
                                                                           The stable outlook reflects Moody's expecta-
The negative outlook reflects Moody's con-                                 tion that Bryn Mawr will continue to enjoy a
cerns with the utility's ability to secure long                            strong market position, generate positive op-
term contracts to sell excess power to mitigate                            erating cash flow and maintain healthy finan-
revenue volatility associated with selling all                             cial reserves.
excess power into the wholesale market. The
outlook additionally factors the adequate debt
service coverage and liquidity levels projected
over the utility's five year forecast.                                     Simmons Food Upsizes Private Deal

                                                                           Zoe McGuire 2010-11-01

Bryn Mawr College Set to Issue $27.9 Mil-                                  Simmons Food priced $265 million in second
lion in Bonds                                                              lien senior secured notes through the 144a
                                                                           private placement market late last week. The
Dan Mitsner 2010-11-01                                                     offering was increased from $250 million.

Bryn Mawr College (PA) is set to issue $27.9                               The seven-year notes priced at par with a cou-
million in bonds through the Pennsylvania                                  pon of 10.50 percent. Moody’s rates the notes
Higher Education Facilities Authority. The                                 B3, while Standard & Poor’s has a B- rating,
bonds are expected to sell on November 9,                                  which is a notch below the corporate credit
2010.                                                                      rating for the company.

Proceeds from the Series 2010A Revenue                                     "The preliminary 'B' corporate credit rating
bonds will be used to partially refund the Se-                             reflects our opinion that Simmons Foods has a
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weak business risk profile and an aggressive                               which is incorporated into and reduces the an-
financial profile pro forma for the pending ac-                            nual debt service obligations. The subsidy
quisition of Menu Foods," said Standard &                                  payments will be not be pledged to bondhold-
Poor's credit analyst Christopher Johnson.                                 ers,” Moody’s said.

The company is seeking to raise approximate-                               The Series 2010A Bonds will be used to re-
ly $380 million in debt to purchase Menu                                   fund the existing Series 1999 Bonds and to
Foods, refinance existing debt and pay ex-                                 pay the costs of issuance. The Series 2010B
penses.                                                                    Bonds will be used to construct a new Science
                                                                           and Engineering Technology Facility, to fund
"Although we believe a moderate level of in-                               general campus improvements and to pay the
tegration synergies may improve future earn-                               costs of issuance.
ings performance," added Mr. Johnson, "we
believe higher feed costs could hurt operating
margins in fiscal 2011."
                                                                           Mt. Sinai School of Medicine Issuing $96.4
The deal was led by Wells Fargo Securities                                 Million in Rev Bonds
and BMO Capital Markets
                                                                           Mike Scorelle 2010-11-01

                                                                           Mt. Sinai School of Medicine (NY) is set to
Univ. of North Ala. Readying $52 Million                                   issue $96.4 million in bonds through the New
in Bonds                                                                   York State Dormitory Authority. The bonds
                                                                           are expected to sell on November 3, 2010.
Dan Mitsner 2010-11-01

                                                                           The bonds will be used for partial refunding
The University of North Alabama is prepping                                of Series 1994A bonds and to pay costs of is-
$37.5 million in revenue bonds including $27                               suance.
million in Build America Bonds. The bonds
are expected to sell on November 4, 2010.                                  Moody's Investors Service has assigned an A3
                                                                           rating to $96.5 million of combined fixed-rate
Moody's Investors Service has assigned A1                                  Series 2010A tax-exempt refunding bonds.
ratings to the (UNA) $10.5 million of General
Fee Revenue Bonds, Series 2010A and to                                     “Moody's believes that Mount Sinai School of
$$27.0 million of General Fee Build America                                Medicine maintains a sound market position,
Bonds, Series 2010B Bonds. The rating out-                                 with a strong educational reputation and con-
look is stable.                                                            tinued expansion of research activities. The
                                                                           School's operations and strategic plans are
“The Series 2010-B bonds are expected to be                                tightly aligned with those of Mount Sinai
issued as Taxable Build America and Recov-                                 Hospital (rated A2/stable), a tertiary-care
ery Zone Economic Development Bonds, with                                  teaching hospital with approximately 1,400
the federal tax subsidy payment made directly                              beds, with the two organizations' boards of
to the Board of Trustees. The Board expects                                trustees working closely together and strategic
to receive a 35% interest payment subsidy                                  and capital decisions being made jointly. Al-
from the federal government, respectively,                                 though the Hospital is a legally separate or-
11 | I n s t i t u t i o n a l   D e b t   |   N o v e m b e r   1 ,   2 0 1 0  
ganization with separately secured debt, we                                ble full value of $28.4 billion for fiscal 2011
believe the two entities would have strong in-                             (assessed value of $3.1 billion). The overall
centives to support one another should either                              stability of the local economy is demonstrated
encounter financial challenges. Thus, the A3                               by the moderate growth that has continued
rating on the School heavily incorporates the                              through most of the downturn but moderated
credit profile of the Hospital, which has dem-                             in fiscal 2011 with a 1.7% increase in net as-
onstrated significant financial strengthening in                           sessed value. The housing market has re-
recent years, following termination of its rela-                           mained stable as have commercial values. The
tionship with New York University Hospitals.                               local economy is supported by a variety of in-
For more information about the Hospital's                                  dustries and a diverse employment base.
credit profile, please refer to our last report
published on Mount Sinai Hospital on May
14, 2010,” Moody’s said in a statement.
                                                                           Maturities Should Be Manageable for US
                                                                           Corporations Over The Next Two Years

Tulsa Set to Issue $70 Million in GOs                                      Zoe McGuire 2010-11-01

Dan Mitsner 2010-11-01                                                     U.S. corporations will see a meaningful
                                                                           amount of debt come due in the next two
The City of Tulsa, Oklahoma is floating $70                                years. According a report published today by
million in general obligation bonds. The sale                              Standard & Poor's, that debt amount should be
is expected to take place on November 3,                                   manageable. However, the maturity schedule
2010. Approximately $60 million of the bond                                will ramp up over the next three years for spe-
proceeds will be used for various street and                               culative-grade firms. Standard & Poor's be-
bridge improvements as approved by voters in                               lieves that the weak spot in terms of refinanc-
November 2008 with the remaining amount                                    ing risk is within the 'B' and 'CCC' rating cat-
from a 2005 authorization for fire protection.                             egories during 2013 and 2014, when approx-
                                                                           imately $390 billion, or 34%, of the $1.1 tril-
Moody's Investors Service has assigned a Aa1                               lion of outstanding 'B' and 'CCC' rated corpo-
rating to the Series 2010 bonds .                                          rate debt will come due.

“The bonds are secured by an ad valorem tax                                "In our opinion, the main refinancing risk fac-
pledge, unlimited as to rate or amount. The                                ing speculative-grade issuers during 2013 and
rating reflects a sizable and stable tax base                              2014 will be the end of the CLOs reinvest-
that has so far weathered the economic down-                               ment period, and the prospect for little-to-
turn without losing value; a satisfactory finan-                           moderate new CLO creation," said Diane
cial position hindered somewhat by a lack of                               Vazza, head of Standard & Poor's Global
revenue raising flexibility; and a favorable                               Fixed Income Research Group. "However, we
debt position with manageable future borrow-                               expect that the loan asset class will draw in
ing plans,” The rating agency stated.                                      new investors to partially fill the void. More-
                                                                           over, through a combination of equity is-
Moody’s also notes that, between fiscal 2007                               suance, acquisitions by stronger firms, bond-
and 2011, the tax base has increased at a five                             for-loan takeouts, and loan paydowns, com-
year annual average of 3.8% reaching a siza-
12 | I n s t i t u t i o n a l   D e b t   |   N o v e m b e r   1 ,   2 0 1 0  
panies that are currently in the 'B' rating class                          credit facility and their $300 million asset se-
with solid business prospects will likely be                               curitization program.
able to handle the maturity bubble."
                                                                           Morgan Stanley, Bank of America Merrill
Nevertheless, according to the report, compa-                              Lynch and JP Morgan led the transaction.
nies with weak balance sheets that have dete-
riorating operating fundamentals or are on the
losing end of a technological or structural
shift in their industry could be forced to cut                             Netflix Ratings Upgraded
debt through exchanges or bankruptcy. This
could cause a modest uptick in the default rate                            Zoe McGuire 2010-11-01

in the 2013 through 2015.
                                                                           Standard & Poor's Ratings Services said today
"However," said Ms. Vazza, "we do not envi-                                it raised its corporate credit and senior unse-
sion a recession-level increase in the default                             cured debt ratings on Los Gatos, Calif.-based
rate due to the maturity bubble without an ac-                             Netflix Inc. to 'BB+-' from 'BB-'. The rating
tual double dip in the economy."                                           outlook is stable.The recovery rating remains
                                                                           a '3', indicating the expectation of meaningful
                                                                           (50%-70%) recovery for noteholders in the
                                                                           event of a payment default.
Arrow Electronics Prices $500 Million in
Two Parts                                                                  "The ratings on Netflix reflect our view that
                                                                           the company has transitioned its business
Zoe McGuire 2010-11-01                                                     from a DVD rental business to both a stream-
                                                                           ing and DVD-by-mail business and has main-
Arrow Electronics priced $500 million in                                   tained a moderate financial profile while ra-
notes Friday. The deal priced through five and                             pidly growing," said Standard & Poor's credit
and 10.5 year maturities.                                                  analyst Jayne Ross.

The $250 million five-year piece priced at                                 The rating agency added, overall, we view the
99.65 with a coupon of 3.375. The $250 mil-                                company's business risk profile as fair, reflect-
lion 10.5-year part priced at 99.674 with a                                ing its position in the highly competitive and
coupon of 5.125 percent.                                                   rapidly evolving domestic media entertain-
                                                                           ment industry, its dependence on decisions
The deal is rated BBB- by both Standard &                                  made by movie studios, a growing subscriber
Poor’s and Fitch, while Moody’s rates it                                   base, and the technology and content risks as-
Baa3.                                                                      sociated with delivery of video movies and
                                                                           streaming content to the home.
The company intends to use net proceeds
from the sale of the notes to pay for recently                             “In addition, we view the company's financial
closed and pending acquisitions and for gen-                               risk profile as intermediate, reflecting its good
eral corporate purposes. Pending such uses,                                cash flow-generating capabilities, credit pro-
net proceeds may be used to repay outstand-                                tection measures that are currently strong for
ing debt under their $800 million revolving                                the rating, and adequate liquidity,” S&P con-
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Structured Finance

Honda Auto Receivables 2010-3 Owner Trust
Amount: 1559989 Issuer: American Honda Finance Date: 2010-10-18
Class Amount Fitch S&P Moodys DBRS Benchmark Coupon Price
A-1       418000       F-1+             P1                                         0.31004   100

A-2       399000       AAA              Aaa                                        0.53      99.99074

A-3       479000       AAA              Aaa                                        0.70      99.99441

A-4       263989       AAA              Aaa                                        0.94      99.9766

Underwiters: Law Firms:
JP Morgan              Bingham
BNP Paribas            Alston & Bird
Bank of America        Luce, Forward, Hamilton & Scripps
Credit Suisse
Goldman Sachs

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Colgate-Palmolive 1.375% Notes Due: 2015-11-01
Amount: 188000Date:        2010-10-29
The net proceeds from the sale of the Notes will be used by Colgate to retire commercial paper which was issued by
Colgate for general corporate purposes. As of October 28, 2010, Colgate’s outstanding commercial paper had a
weighted average interest rate of 0.19% with maturities ranging from 1 day to 26 days
Fitch:AA-| Moody's:          Aa3|   S&P: AA-
Underwriters: Law Firm:
Bank of America        Sidley Austin
Citi                   Mayer Brown
Goldman Sachs
Credit Suisse

Colgate-Palmolive 2.95% Notes Due: 2020-11-01
Amount: 250000Date:        2010-10-29
The net proceeds from the sale of the Notes will be used by Colgate to retire commercial paper which was issued by
Colgate for general corporate purposes. As of October 28, 2010, Colgate’s outstanding commercial paper had a
weighted average interest rate of 0.19% with maturities ranging from 1 day to 26 days
Fitch:AA-| Moody's:          Aa3|   S&P: AAA
Underwriters: Law Firm:
Bank of America        Sidley Austin
Citi                   Mayer Brown
BNP Paribas
Deutsche Bank

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