Oakland Unified School District – 2013

Oakland Unified School District
General Obligation Bonds (Election of 2012)
Series 2013

Oakland USD issues largest non-rated long-term governmental purpose tax-exempt offering since 1965

The Oakland Unified School District’s September 2013 transaction was the second non-rated tax-exempt financing successfully priced by our firm on behalf of the District and was the largest non-rated publicly offered governmental purpose long-term municipal offering successfully sold in the tax-exempt markets since 1965. As with the 2012 bonds, we began extensive pre-sale marketing several weeks in advance of the pricing to ensure a successful investor outreach and a broad institutional investor audience.

Market conditions leading into the September 4th sale were extremely volatile with investors spooked by FOMC statements regarding the potential tapering of its bond buying program, and continuing municipal bond fund outflows. Fortunately the morning of the sale experienced little volatility.

The sale was a solid success for the District. The 2013 Bonds were priced with 5- and 8-year optional par call flexibility at competitive interest rates. Nearly $458 million of orders were received during the 90-minute order period of which 91% were priority orders generated by SBS.

The aggressive marketing program, superior bond underwriting, market timing and teamwork allowed the District to accomplish its objective of $120 million bond proceeds.