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Wells Fargo Securities has completed a $341 million tax-exempt bond offering that will be used to fund construction of the Academy of Motion Picture Arts and Sciences’ new museum, the bank announced today. Institutional sales began Wednesday, and the bond series oversubscribed quickly, Wells Fargo, which was sole manager of the offering, said.
The 30-year Aa2 fixed-rate bonds will be used to finance the museum, a 310,000-square-foot facility slated for completion in 2018. The project, for which the Academy has launched a $388 million capital campaign, is expected to create 500 construction jobs and 140 full-time jobs.
“Wells Fargo is honored to bring the Academy’s largest bond offering to the market. The offering was extremely well-received by investors,” Phil Smith, head of Wells Fargo Government and Institutional Banking, said. “Total orders for these ‘Oscar Bonds’ were six times the amount of bonds available, which allowed the bonds to be repriced resulting in a lower borrowing cost for the Academy.”
“We are very pleased with how successful the bond offering has been,” Andy Horn, the Academy’s CFO, commented. “This is an important milestone for the museum project, and we continue to build momentum as we begin construction.
Horn represented the Academy in negotiations. Rick Chisholm, managing director for Wells Fargo Securities, and Doug Brown, director for Wells Fargo Securities, represented Wells Fargo Securities as underwriter. The Los Angeles law firm Irell & Manella LLP served as corporate counsel for the Academy.
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