The San Francisco Airport Commission refunds $110 million in fixed-rate revenue bonds with new variable-rate bonds to lower its overall interest cost.  •  The San Dieguito Union High School District responds to the turbulent auction-rate market by converting $90 million in ARS bonds to fixed-rate securities.  •  De La Rosa & Co. generates $41 million of retail orders to reduce yields and save the L.A. County Metropolitan Transportation Authority significant interest costs on a $25-million Sales Tax Revenue Bond issue.  •  The L.A. Community Redevelopment Agency obtains a strong investment-grade rating on a $12.5-million Taxable Tax-Allocation Bond issue for the Westlake Recovery Project.  •  Despite a tough market, Beverly Hills successfully refunds $31 million in water revenue bonds and $17 million in wastewater revenue bonds for economic savings.  •  The Gridley Redevelopment Agency clears various hurdles caused by tightening credit in the municipal market to successfully execute its first tax-allocation bond financing.  •  Riverside issues unenhanced Bond Anticipation Notes to mute the effects of the collapse of auction-rate securities and prudently control interest costs.  •  The Sacramento Regional County Sanitation District restructures $50 million in auction rate securities with better performing, direct pay variable-rate bonds backed by letters of credit.  • 
 

Lightening the Debt Load at Ontario Airport

$90,155,000
Department of Airports of the City of Los Angeles
Ontario International Airport
Refunding Revenue Bonds, 2006 Series A & B
De La Rosa & Co. served as Senior Manager on a 2006 refunding of all outstanding debt at Ontario Airport by the City of Los Angeles’ Department of Airports. De La Rosa spearheaded the effort to update the airport’s indenture to increase its financial flexibility to define net revenues, its debt-service reserve fund, and swap language. DLR also helped reaffirm its “A” rating and obtain aggressive bids from the major bond insurers.

The De La Rosa Sales and Trading Desk serialized all Series 2006A bonds to take advantage of the municipal yield curve, resulting in an all-in true interest cost (TIC) of 4.57%. This saved more than $11 million (about 11%) of net present value. The firm was able to save nearly $1.5 million (about 20%) in NPV on the Series 2006B bonds.
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