IDAHO: Lucky Seven

The Idaho State Building Authority on Thursday will issue seven series of revenue bonds totaling $64.1 million. Lehman Brothers is the underwriter for the negotiated sale of Series 2003D through Series 2003J bonds.

Fitch Ratings gave the issue an underlying A-plus, Standard & Poor's assigns a AA-minus, and Moody's Investors Service does not rate this deal. Proceeds of the sale will fund projects for state institutions of higher education, including two community colleges, as well as the Idaho State Police/Post Academy.

Rentals, appropriated directly by state lawmakers, are the source of debt service payments, and the state lease payments supply a "sound basis for repayment of the bonds," according to a report written by Fitch analyst Richard J. Raphael. The authority, he noted, is the sole issuer of state tax-supported, long-term debt.

"Tax-supported debt, amounting to approximately $230 million with this issue, presents only a very minor burden of 0.7% of personal income," Raphael wrote. "While the economy has traditionally depended on natural resources, expansion in the past decade centered around high technology electronics and services."

MBIA Insurance Corp. is insuring all seven series. It has insured all of the authority's currently outstanding bonds, with the exception of Series 2003A, B and C, according to Sean Keatts, a vice president at Lehman.

Seattle-Northwest Securities is the financial adviser. Skinner Fawcett is bond counsel.