Municipal Bond New Issues

RE: $32,810,000*
LAFAYETTE PUBLIC POWER AUTHORITY
ELECTRIC REVENUE BONDS, SERIES 2007
(LAFAYETTE, LOUISIANA)

THERE WILL BE A RETAIL ORDER PERIOD TODAY, MONDAY, NOVEMBER 5, 2007 UNTIL 3:30PM EASTERN.

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PLEASE USE THE FOLLOWING RETAIL SCALE:
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MOODY’S: Aaa S&P: AAA FITCH:
(A1) (A)

MBIA INSURED

DATED: 12/06/2007 FIRST COUPON: 05/01/2008

DUE: 11/01

TAKEDOWN
MATURITY AMOUNT* COUPON PRICE (pts)

11/01/2008 370M 3.75 % 3.40
1/4
11/01/2009 425M 3.50 % 3.43
1/4
11/01/2010 445M 3.75 % 3.47
3/8
11/01/2011 465M 3.50 % 3.55
3/8
11/01/2012 490M 4.00 % 3.63
3/8
11/01/2013 515M 3.75 % 3.71
3/8
11/01/2014 540M 4.00 % 3.76
3/8
11/01/2015 565M 4.25 % 3.83
3/8
11/01/2016 595M 4.00 % 3.93
3/8
11/01/2017 625M 4.00 % 4.01
3/8
11/01/2018 660M 4.00 % 4.15
1/2
11/01/2019 695M 4.25 % 4.29
1/2
11/01/2020 730M 4.375 % 4.39
1/2
11/01/2021 770M 4.50 % 4.49
1/2
(Approx. $ PTC 11/01/2017
100.075)
11/01/2022 810M 4.50 % 4.56
1/2
11/01/2023 850M 4.50 % 4.60
1/2
11/01/2024 895M 4.50 % 4.64
1/2
11/01/2025 940M 4.625 % 4.68
1/2
11/01/2026 990M 4.625 % 4.71
1/2
11/01/2027 1,045M 4.625 % 4.74
1/2

11/01/2032 19,390M NOT OFFERED DURING THE RETAIL ORDER
PERIOD

CALL FEATURES: Optional call in 11/01/2017 @ 100.00

* - APPROXIMATE SUBJECT TO CHANGE

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PRIORITY OF ORDERS AS FOLLOWS:
1. Louisiana Retail
2. Group Net
3. Member

PRIORITY POLICY:

The Senior Manager requests the identification of all priority orders at the time the orders are entered.

Order period until 3:30 P.M., E.D.T., today, Monday, 11/05/07.

The managers reserve the right to terminate or extend the order period prior to or later than the above mentioned time and date and to confirm bonds at
their discretion.

The compliance addendum MSRB Rule G-11 will apply.

The award is expected on Tuesday, November 6, 2007.

Delivery is expected on December 6, 2007.

This issue is book entry through DTC.

Merrill Lynch & Co.
Morgan Keegan & Co., Inc.