Cultured by Bonds
November 11, 2013 2:57 PM
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Cultured by Bonds
Bonds play a vital role in providing the cash needed by cultural institutions to get projects off the ground before donation pledges come to fruition. Here's a list of notable developments at facilities like museums, galleries and zoos that were funded in part by bonds:
Michael R Barnes/Michael R. Barnes, Smithsonian I
Smithsonian's National Museum of African American History and Culture
JPMorgan is underwriting $100 million of taxable bonds by the D.C. Smithsonian Institution that will, in part, finance the upcoming Museum of African American history. The deal includes $50 million of fixed-rate bonds priced Nov. 6, and $50 million of floating rate notes set to price the week beginning Nov. 11. Related Article: Clint Eastwood and Floating Rates Pave Culture's Road to Bond Market
The National Law Enforcement Museum
A non-Smithsonian project in the nation's capital, the law enforcement museum raised $53 million in cash and pledges through a star-studded fundraising campaign, and will raise another $99 million in capital through a bond issue by HJ Sims in the first quarter of 2014. Related Article: Clint Eastwood and Floating Rates Pave Culture's Road to Bond Market
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New York Aquarium Ocean Wonders Expansion
In October 2012, Goldman, Sachs & Co managed $112.5 million of revenue bonds through the Trust for the Cultural Resources of the City of New York for renovations at the New York Aquarium in Brooklyn and the Bronx Zoo. About $42 million went to offset the costs of a 57,500-square-foot Ocean Wonders building housing sharks and other exhibits. Related Article: Bond Sale for NYC Aquarium, Zoo
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Bronx Zoo Renaissance II
The second portion of the Goldman-led bond issue, $59 million of bonds, paid for maintenance at the Bronx Zoo, including construction and renovations of animal exhibits. Related Article: Bond Sale for NYC Aquarium, Zoo
Please Touch Museum
The Please Touch Museum of Philadelphia sold $60 million of Citi-issued revenue bonds in 2006 to finance a move to a new building. The museum failed to make scheduled Sept. 1 debt service and defaulted on almost $59 million in bonds.Related Article: Philadelphia Kids' Museum Defaults
LACMA - The Los Angeles County M/Los Angeles County Museum Art -
LACMA
The California Infrastructure and Economic Development Bank issued $78 million of refunding revenue bonds for the Los Angeles County Museum of Art Project in August. Wells Fargo Securities was underwriter and remarketing agent for the bonds.
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Field Museum of Natural History Illinois Educational Facilities
JP Morgan remarketed $12 million of Series 2002 adjustable medium term revenue bonds for the Field Museum of Natural History in Chicago, Illinois in October. In 2012, they remarketed another $10.7 million of the same bonds, which total $90 million, as well as $20 million and $28.9 million of series 1990 and 1998 bonds, respectively.
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Lincoln Center for Performing Arts
New York's cultural trust issued $151.3 million of refunding Series 2008 revenue bonds for the Lincoln Center for the Performing Arts in June 2012. BNY Mellon and JP Morgan Chase provided letters of credit and Morgan Stanley underwrote the deal.
Indianapolis Museum of Art
In April, RBC Capital Markets, US Bancorp and City Securities underwrote $40 million of revenue refunding bonds for the Indiana Finance Authority. The proceeds were for the Indianapolis Museum of Art.
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American Museum of Natural History
Wells Fargo, Morgan Stanley, US Bancorp and JP Morgan acted as remarketing agent for $172 million of refunding revenue bonds in a deal by New York's cultural trust. The bonds were for the American Museum of Natural History.
