September 21, 2018
KNN Public Finance
Serving as El Camino Community College District's ("District") Municipal Advisor, KNN Public Finance ("KNN") recently assisted the District with the issuance of its 2018 General Obligation Bonds (Election of 2012, Series 2018B). The financing closed on August 29, 2018. This transaction marks KNN's 7th bond issuance for California community college districts in 2018 totaling a par amount of $670,685,000.
The Series 2018B Bonds are the District's second series from its 2012 Measure E authorization. The bonds were issued as current interest bonds with a 30-year maturity term and a repayment ratio of 2.08 to 1. Proceeds from the sale will provide nearly $50 million of funding for a variety of capital projects throughout the District’s main campus including a Student Services and Student Activities Center, Arts building as well as a Social and Behavioral Science building.
El Camino CCD received a rating upgrade from Standard & Poor’s to "AA+" from its prior rating of "AA". Credit strengths noted by S&P include: “management’s prudent budget practices, maintenance of very strong reserves, continued economic growth and improved property wealth over the last several years”.
The District’s strong credit profile helped to enhance investor demand and overall pricing performance on the day of sale. The District was able to leverage stable market conditions and strong investor demand to lower the overall cost of borrowing. The District received aggregate orders exceeding $100 million, more than double the amount of bonds available.
Pursuant to Municipal Securities Rulemaking Board Rule G-42, see Regulatory Information: http://www.knninc.cfixedom/regulatory-information.html