smf notes: Those are school construction and modernization bonds
- used for capital improvement.
LAUSD NEWS RELEASE
For Immediate Release August 1, 2007
LAUSD SELLS $1 BILLION IN GENERAL OBLIGATION BONDS
Los Angeles – Los Angeles Unified School District (LAUSD) officials today announced the sale of $1 billion in General Obligation bonds to fund projects for Measures K, R and Y bond projects. Since first appearing in the general obligation bond market in 1997, LAUSD has successfully completed 28 general obligation bond transactions, including refundings. Voter-approved school bond initiatives have been the driving force behind the construction of hundreds of building projects, including new schools, health and safety upgrades, classroom equipment purchases and improved adult learning facilities.
“The proceeds from the bonds have funded LAUSD’s historic building program, providing 69,000 new classroom seats through the construction of 67 new schools and 55 additions to existing schools thus far,” said LAUSD Board President Mónica García. “The success of our building program, coupled with the District’s sound finances, makes the bonds an attractive investment for bondholders.”
“The success of this sale underscores the confidence that investors have in the District’s management,” said LAUSD Superintendent of Schools David L. Brewer III.
Earlier this month, District officials traveled to New York, Boston and San Francisco to meet with Moody’s Investors Service and Standard & Poors’ Rating Services, bond insurers and investors such as Nuveen, Vanguard and Fidelity to further strengthen the District’s sound financial relationship with Wall Street. This marked García and Superintendent Brewer’s first meeting with Wall Street. García was elected Board President in July and Superintendent Brewer was appointed Superintendent last fall.
Ahead of the sale, the District’s high investment grade ratings of Aa3 and AA- were reaffirmed by Moody’s and S & P, respectively. The District’s favorable bond ratings result in lower interest rates. This has kept the debt service burden on taxpayers well below the levels authorized by voters.
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