Just a week after it received a license to operate in California, Build America Mutual Assurance Co. has already insured its first deal in the Golden State.
On Wednesday, BAM insured $12 million of general obligation bonds for the Washington Unified School District in Fresno, California. Proceeds from the transaction will be used to finance the construction, renovation, modernization and equipping of school facilities.
Piper Jaffray priced the bonds, which had an underlying rating of A by Standard & Poor’s. BAM carries a AA rating from Standard & Poor’s.
Yields ranged from 0.67% with a 2% coupon in 2014 to 3.75% with a 5% coupon in 2043.
Fieldman, Rolapp & Associates served as financial advisor.
BAM announced on January 30 that it was licensed by the California Department of Insurance to insure in the state. California makes the 27th state in which BAM is licensed to operate.
“We are pleased to have done this transaction so quickly after being licensed in California and look forward to providing insurance for many California bond issues in the months and years ahead,” said Sheelagh Flanagan, BAM’s head of public finance in the west.
BAM is based in New York, but serves its California issuers out of its western regional office in San Francisco.
BAM, the first municipal bond mutual insurer, launched in July and wrapped its first bond issue—a $10 million York Suburban School District, Penn. deal—in September.