The City of Los Angeles ("the City') is expected to come to market with $220 million in Wastewater System Subordinate Series 2018-A Revenue Green Bonds, and $142 million in Wastewater System Subordinate Series 2018-B Revenue Refunding Bonds (together called "the Bonds").
The proceeds of the Series 2018-A Subordinate Bonds, together with certain other amounts from the City, will be used to: (i) finance the construction and improvement of the System; (ii) pay all outstanding Wastewater System Commercial Paper Notes; and (iii) pay certain costs of issuing the Series 2018-A Subordinate Bonds.
The proceeds of the Series 2018-B Subordinate Bonds. together with certain other amounts from the City, will be used to: (i) refund a portion of the City’s Wastewater System Subordinate Revenue Bonds, Variable Rate Refunding Series 2012-D; (ii) pay all or a portion of the termination payments in connection with the termination of the Swap Agreements; and (iii) pay certain costs of issuing the Series 2018-B Subordinate Bonds. See the Preliminary Statement for further details.
The Bonds are special, limited obligations of the City payable solely from the Revenues, on a basis subordinate to the Senior Lien Bonds, and from amounts on deposit in the 2018 Subordinate Debt Service Fund created pursuant to the Subordinate General Resolution. The City is not obligated to make payments from any other source. The Bonds are not payable from the General Fund of the City and are not a general obligation of the City, and neither the full faith and credit nor the taxing power of the City is pledged to the payment of any amounts due on the Bonds.
The bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described in the Preliminary Official Statement.
The bond sale offers attractive benefits to individual investors including prices and yields that match those available to institutional investors and the potential for stable income through the call dates. And, for California residents, federal and state tax-exemption on the bond coupon payments.
How to place an order
The offering is expected to price the week of October 29, 20181, although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders online or by calling a Fidelity representative at 800-544-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity Alerts and see our Municipal Bond New Issue Offerings.