Port of San Francisco
Revenue Bonds, 2014 Series A & B
Focused marketing, a bond market rally and adept pricing strategy benefit Port’s deal
The Port of San Francisco’s 2014 Series A & B Bonds were issued in May and rated “A1/A-/A.” This is the second transaction our firm has senior managed for the Port.
Proceeds of the Bonds were used to finance or refinance the improvement of various Port facilities and fund a debt service reserve fund. Due to the funding needs for taxable and tax-exempt projects, the more costly taxable bonds (2015 – 2020) were amortized first with the less costly tax-exempt bonds (2020 – 2044) structured to wrap around and generate aggregate level debt service.
Having not issued bonds since early 2010, Siebert Brandford Shank, the Port, and its Financial Advisors decided that an investor presentation would reacquaint the investor community with the Port’s credit and attract new investors. We assisted the Port in its investor presentation process which focused on the Port’s role as the “front door” of San Francisco, its economic impact to the city, and its focus on real estate and maritime activities.
Due to our strong marketing effort, a rally in the market and adept pricing strategies, the transaction received more than $47 million of orders, 91% of which were placed by Siebert Brandford Shank. Over-subscription in most of the maturities allowed further decreases in the yields of up to 5 basis points compared to the initial pricing. In addition, the underwriting team stepped up and underwrote $2.765 million in unsold bonds for the benefit of the Port at interest rate levels that were not receiving investor interest.