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.  • 
 

Pooled Financing for L.A. Redevelopment

In 2006, De La Rosa & Co. served as book-running Senior Manager on the $34.5-million pooled financing for the City of Los Angeles’ Community Redevelopment Agency. De La Rosa presented several structuring options to meet CRA objectives, including the use of a 1% yield spread at the Financing Authority level to enhance the overall credit. DLR structured the financing without a yield spread to adhere to the agency policy of maintaining complete separation between project areas.

(complete version) 		   
Tax Exempt Fixed-Rate Bonds - A majority of the securities we buy and sell carry fixed interest rates. For clients’ new issues, we employ various coupon structures, call features, discounts and premiums to generate demand for each section of the yield curve. We combine our unique knowledge of the state’s investors with the science of efficient structuring to deliver the lowest interest rates to clients. By focusing on the California market, De La Rosa & Co. delivers benefits that other general-market firms are hard-pressed to match.

Taxable Fixed-Rate Bonds - De La Rosa actively trades money market securities, U.S. Treasuries and Agencies, investment-grade corporate debt, mortgage-backed securities including GNMA, FHLMC & FNMA collateral, CMOs, asset-backed and CMBS securities. Our understanding and expertise in securities ranging from high grade to below investment grade enables our firm to consistently add relative value for our customers’ portfolios.

Variable-Rate Bonds & Remarketing - De La Rosa & Co. often recommends variable-rate bonds to our issuing clients to reduce their interest costs. The average tax-exempt variable interest rate paid by our high-grade issuers was 3.34% in 2006. We serve as Remarketing Agent for more than $2.2 billion of taxable and tax-exempt variable-rate bonds.

Derivative Structures - Interest rate swaps, rate locks, synthetic rate structures, and other derivative products can reduce borrowing costs and hedge market risk by converting fixed- to variable-interest rates, or vice-versa. These products can be extremely useful for the right client in the right market. Before recommending their use, though, we assess the applicability of derivatives to a client’s needs, and fully explain the risks and rewards.


Back to Products & Services