SAFCA Bonds Well Received - Flood Control Moves Ahead.SACRAMENTO, Calif.--(BUSINESS WIRE)--Oct. 18, 1995--Natomas and North Sacramento North Sacramento is a well-established community that is currently part of the city of Sacramento, California. It was a city from its incorporation in 1924 until it was merged by mutual agreement in 1964 between its government and that of Sacramento. residents will finally get 100-year-plus flood protection as a result of successful efforts by the Sacramento Area Flood Control Agency (SAFCA SAFCA Sacramento Area Flood Control Agency (California) ) to sell bonds to fund local flood protection projects. Today SAFCA announced the sale of $42 million of bonds which will fund levee levee (lĕv`ē) [Fr.,=raised], embankment built along a river to prevent flooding by high water. Levees are the oldest and the most extensively used method of flood control. improvements and a pump station along the Natomas East Main Drain, providing greater flood protection in Natomas and North Sacramento. By 1996, when the projects are expected to be completed, area residents will be able to purchase flood insurance Flood insurance denotes the specific insurance coverage against property loss from flooding. To determine risk factors for specific properties, insurers will often refer to topographical maps that denote lowlands and floodplains that are susceptible to flooding. at a reduced rate, or even to discontinue their flood insurance. "This was our first trip to the public market and the strong interest by investors shows they understand SAFCA's mission and are confident in our ability to bring flood control to the Sacramento region," explained F.I. "Butch" Hodgkins, executive director of SAFCA. "In spite of difficulties in selling California municipal bonds due to the problems in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Orange Counties, Sacramento County and City are well received and very popular with municipal bond investors," explained Sacramento County Treasurer John Dark. "The timing of the issuance worked well for the market, and Paine Webber Paine Webber and Company was an American stock brokerage firm that was acquired by the Swiss bank UBS AG in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine and Wallace G. Webber. and O'Brien Partners did an outstanding job." O'Brien Partners cited a very favorable market climate and a vibrant diversified area economy as key factors in the successful financing. The winning bid was submitted by the underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. firms of Paine Webber, Artemis, and Bear, Stearns at a net interest cost of 5.454%. The firm of Orrick, Herrington & Sutcliffe of San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden served as SAFCA's bond counsel, Public Finance Management served as their financial advisors and O'Brien Partners acted as pricing advisors. "All of Paine Webber was proud to have the opportunity to help SAFCA come to the market for this first issue. Our sales force did an excellent job in delivering a very strong set of orders," said Tim Carty, vice president of Paine Webber. "We look forward to working with SAFCA on future financing." "The strong market reception of the SAFCA bonds demonstrates the success of the SAFCA staff in structuring a financing plan with demonstrated value to both the investors and the taxpayers. The importance of flood control to the Sacramento region was clearly communicated today," observed Patti Gorczyca with Public Financial Management. Sacramento City Treasurer Thomas D Thomas D. (born Thomas Dürr, December 30 1968 in Ditzingen close to Stuttgart, Germany) is a rapper in the German hip hop group Die Fantastischen Vier. He frequently works on solo projects. Life After finishing Realschule he took on an apprenticeship as a barber. . Friery, who served on the pricing committee, added, "It is difficult to explain exactly how hard it is to accomplish an entity's first financing plan. Clearly, with the market acceptance of SAFCA being so positive, support for the SAFCA board, their mission and the importance of flood control in our region is clarified. The SAFCA board and staff should be commended for their resolve and plans to bring flood control to our region." "This is great news for Sacramento residents. SAFCA plans to move ahead on the projects as quickly as possible to ensure improved flood protection for the area," said Hodgkins. CONTACT: SAFCA Butch Hodgkins, 916/440-7606 |
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