Value Delivered:

KNN Public Finance guided the State of California's Public Works Board through its first-ever competitive sale of lease revenue bonds.
   
Strategic Implementation:

The State Public Works Board combined three series of revenue bonds to support various capital improvement projects for California Community Colleges, the renovation of the Food and Agriculture Building for the Department of General Services, and various building projects for the Department of Corrections and Rehabilitation. To satisfy State mandates, KNN established pre-qualification terms for bond insurers and bid parameters for underwriters based on the lowest net interest cost, as opposed to the industry standard of true interest cost. The firm's presale marketing efforts included contact with more than 100 underwriters and investors and resulted in bids from seven investment syndicates.
   
Results:

The final sale of $108,895,000 of Series E, F and G lease revenue bonds resulted in a savings for state taxpayers of 2 to 6 basis points, approximately $5.7 million over the life of the loan.