Transaction Summary
Siebert Cisneros Shank Los Angeles County Metropolitan Transportation Authority’s, Proposition C Sales Tax Revenue Bonds Senior Bonds, Series 2019-A (Green Bonds) and Series 2019-B on February 5 and 6, 2019.

Proceeds from the Series 2019AB Bonds will be used to finance the development and construction of certain projects of the rail, bus and highway transit system, including, with the proceeds of the Series 2019-A Green Bonds, projects that have been identified as environmentally beneficial.

The Bonds were rated Aa2/AAA/AA+ with an upgrade by S&P from AA+ to AAA.

The Series 2019-A (Green Bonds) mark the 4th largest green bond financing in California in the last 5 years, and were the second-largest non-state-level green bond financing in California in the last 5 years.

The Series 2019A&B Bonds are secured by 80% of the half-cent Proposition C Sales Tax revenues on all taxable sales in the County of Los Angeles. The Bonds were structured with a 5-year deferred principal level debt service through 2044 (25 years) to minimize upfront aggregate Prop. C debt service and maximize debt service coverage.

Pricing Results
As a result of SCS’s strong pre-marketing effort and aggressive pricing strategy, the transaction received $1.176 billion orders and the bonds were over 2.2x oversubscribed.

The Series 2019-A Green Bonds received $996 million orders and were 2.4x oversubscribed. The 20-year maturity (due in 2039) was 3.7x oversubscribed.

During the retail order period on February 5th, $128 million retail orders were received from California buyers. 54 accounts submitted orders including 31 new accounts who were not reported as current holders of LACMTA’s bonds. In addition, 14 existing LACMTA holders submitted orders and 21% of the investors who viewed the investor presentation submitted orders.

LACMTA achieved 60% bond holder consent to pass an amendment which allowed it to issue future Prop. C Sales Tax bonds without a reserve fund.

Overall, the transaction priced successfully and lower than any of Metro’s Prop. C issuances in the past 6 years, by at least 2 to 22 basis points, depending on the maturity.