Keygent Advises on $60 million GO Bond Issuance for Santa Monica-Malibu Unified School District and Secures ‘Aaa’ Rating
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The Santa Monica LOOKOUT published the article titled, “Santa Monica-Malibu Unified School District Receives Prime Bond Rating,” which quoted Keygent’s Managing Director, Anthony Hsieh. Keygent advised Santa Monica-Malibu Unified School District on a $60 million general obligation bond financing as the third issuance of its Measure ES authorization. Measure ES was approved by 68.1% of voters in 2012 in an amount not-to- exceed $385 million. The funds are intended to be used for the repair of school facilities, updating of earthquake and fire safety systems, improvement of energy efficiency, and upgrading of technology, among other things. The first installment of bonds was issued in August 2014 for $30 million and the second series was issued in July 2015 for $60 million. Currently $235 million of authorization remains to be issued.
In the process of issuing the Series C Bonds, the District met with the top two credit rating agencies, Moody’s Investor Service and Standard & Poor’s Financial Services, to secure ratings for the bond sale. Keygent prepared a comprehensive credit presentation that highlighted the District’s many strengths and assisted in the presentation of the material to the credit analysts. Moody’s Investors Service upgraded the District’s credit rating to ‘Aaa’ from ‘Aa1.’ The rating ‘Aaa’ represents the highest credit rating achievable from the agency and demonstrates the District’s “extremely strong” capacity to meet its financial commitments. The District also maintained its strong ‘AA’ rating from Standard & Poor’s Financial Services.
Keygent has advised the District on eleven financings since 2009, which included a majority of the Election of 2006 Measure BB authorization, the 2010 Refunding Certificates of Participation, Series A and B, and the structuring and issuances of the Measure ES authorization.