Pomona College

$41,879,739
Revenue Bonds

$27,040,000
Variable Rate Revenue Bonds

Pomona College is one of California's oldest and most prestigious institutions of higher education. Established in 1888, Pomona is dean of the seven campuses that comprise the highly regarded Claremont Colleges. It is also one of only three colleges in the state to earn a coveted "Aaa/AAA" rating from Moody's and Standard & Poor's.

De La Rosa & Co. recently helped Pomona raise $55 million. The financing enabled the school to construct a new academic building, renovate several residential facilities, refund $15 million of Series 1999B bonds for debt-service savings, avoid additional debt service on the current operating budget, and maintain the College's ratings.

De La Rosa issued a combination of fixed-rate and variable-rate bonds. The fixed-rate bonds included 40-year capital-appreciation bonds and current-interest bonds to limit additional debt service burden and take advantage of the flat end of the yield curve. The variable-rate bonds have a 50-year final maturity to provide level overall debt service requirements at current levels. The College invested reserved cash as a hedge against rising interest rates, and to provide liquidity for bond tenders.

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