Harbor Department of the City of Los Angeles
Refunding Revenue Bonds, 2015 Series A (Non-AMT)
Siebert Cisneros Shank served as the book-running senior manager on the Harbor Department of the City of Los Angeles’ Refunding Revenue Bonds 2015 Series A on September, 30th 2015. The Bonds were rated Aa2/AA/AA and with a stable outlooks from Moody’s, Standard & Poor’s, and Fitch, respectively. Bond proceeds were used to current refund and defease the Department’s 2005 Series A and 2005 Series B Refunding Revenue Bonds for savings and to pay issuance costs.
During the order period the Department received over $169.3 million priority orders from 30 investors, including $44.3 million orders from 15 new investors. 100% of the total priority orders were generated by Siebert Cisneros Shank.
The final pricing scale resulted in almost half of the maturities (2016 through 2020) pricing flat to MMD and the balance of the maturities pricing 1 to 12 basis points over MMD. Net present value savings totaled $6.9 million, or 15.6% of refunded par, resulting in uniform weighted annual cash-flow savings of approximately $789,000 between FY 2016 and FY 2027. The resultant arbitrage yield was 1.75% and the All-in TIC was 1.94%.