Los Angeles plans $450.74 million sale of wastewater revenue bonds

By Sheri Kasprzak

New York, Oct. 4 - The City of Los Angeles is expected to sell $450.735 million in series 2010 wastewater system revenue bonds, according to a preliminary official statement.

The offering includes $186.735 million in series 2010A senior-lien Build America Bonds (Aa2/AA/AA+), $80 million in senior-lien taxable recovery zone economic development bonds (Aa2/AA/AA+) and $184 million in series 2010A subordinate tax-exempt bonds (Aa3/AA-/AA).

The bonds will be sold on a negotiated basis. Siebert Brandford Shank & Co. LLC is the lead bookrunner for the senior-lien bonds, and Cabrera Capital Markets LLC is the lead bookrunner for the subordinate bonds. The co-managers for the senior bonds are De La Rosa & Co. and Stone & Youngberg. The co-manager for the subordinate bonds is Backstrom McCarley Berry & Co. LLC.

The maturities have not been set.

Proceeds will be used to fund improvements to the city's wastewater system, as well as to refund existing commercial paper notes. The remainder will be used to fund a debt service reserve fund.

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