Alameda JPA Lease Revenue, Series 2018

Alameda County Joint Powers Authority
$73,495,000
Taxable Lease Revenue Bonds, Series 2018

Proceeds prepay and redeem outstanding bonds and fund County projects

On March 22, 2018, SCS served as senior manager for Alameda County Joint Powers Authority’s $73.5 million Taxable Lease Revenue Bonds, Series 2018.

Background
The County issued 1998 COPs to fund the Medical Center Project in 1998. The 1998 COPs were defeased to maturity in connection with the issuance of the Tobacco Settlement Asset-Backed Bonds, Series 2002.
The defeasance structure provided a group of securities (“1999 Escrowed Securities”) that will release cash payments that in turn pay the remaining debt service payments on the 1998 COPs. The County also maintained the right to repay the 1998 COPs at any time.

Transaction Summary
The 2018 Taxable Bonds proceeds were used to prepay and redeem all of the outstanding 1998 COPs and fund additional County projects. After the issuance of the 2018 Taxable Bonds, the 1998 Escrowed Securities were held for the benefit of the County as they were no longer needed to make the remaining 1998 COPs debt service payments. The 2018 Taxable Bonds were sized so that the payments received by the County from the Escrowed Securities approximately matched the County’s annual Base Rental Payments in connection with the Series 2018 Bonds. However, the 1998 Escrowed Securities payments to the County were not pledged as security for the Series 2018 Bonds.

Pricing Results
After the pricing period, the bonds were 1.5x oversubscribed with the majority of orders coming from professional retail given that the final maturity was within 10 years. Present value savings totaled $5.2 million or 7.9% of refunded par. This level of savings enabled new money proceeds of $5.1 million.