LOS ANGELES — The use of direct lending continues to increase among municipal issuers in California, not just to restructure existing transactions, but increasingly for new money borrowing, according to industry experts.

"What I'm seeing is that issuers are looking to direct placements and direct lending for new money issuances and new financing structures," said Rudy Salo, a partner at Nixon Peabody LLP. "I'm seeing more and more movement away from just using direct placements as a replacement for refundings, and I think there's going to be a lot more new money issuances in the direct lending world."

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