LOS ANGELES (Aug. 23, 2016) – On Thursday, the Los Angeles Unified School District finalized the sale of General Obligation Refunding Bonds that will deliver more than $140 million—net present value--of taxpayer relief to the community. The District was able to refinance existing General Obligation Bonds (“GO Bonds”) by taking advantage of historically low interest rates. The District achieved the savings without extending the term of the originally issued GO Bonds.
The Refunding Bonds were sold by a competitive sale through the Parity electronic bidding system. By 8:00 a.m. Pacific, eight different bids were received. The winning bid was submitted by Morgan Stanley & Co., with the cover bid provided by Bank of America Merrill Lynch. The difference between the winner and the cover was less than one basis point, highlighting the extremely competitive bidding environment and high demand for the District’s bonds. The District refinanced GO Bonds issued under Measures K, R and Y, approved by the voters in 2002, 2004 and 2005, respectively.
Under state law, all savings from the Measures K, R, and Y refinancing will go directly to the taxpayers. The District will not receive any additional funds.
Contact: Shannon Haber (213) 241-6766