LOS ANGELES — Vernon, Calif. is pricing $110 million in taxable electric system revenue bonds on July 8 to eliminate exposure to interest rate swaps and take advantage of current low interest rates.

The industrial city, located southeast of downtown Los Angeles, says it provides services to 1,800 businesses that employ 55,000 people. It has a residential population of 112.

JPMorgan is senior manager. Citi is co-manager. PFM is financial advisor. Orrick, Herrington & Sutcliffe LLP is bond counsel.

The Series 2015 taxable electric system revenue bonds will be structured as fixed-rate serial bonds maturing from 2023 to 2027, according to bond documents.

The bonds are special obligations of the city secured by a pledge of net revenues of the electric system and certain other funds held by the trustee under the indenture.

The bonds are federally taxable though California tax-exempt.

Standard & Poor's assigned an A-minus long-term rating to the revenue bonds and affirmed an A-minus long-term rating on its outstanding debt in a June 30 report. The outlook is stable.

The city also plans to terminate its remaining interest rate swaps with reimbursement from the proceeds of the 2015 bonds, Bill Fox, the city's finance director and treasurer, said in a net roadshow.

The city has $173.7 million in swaps notional, according to the road show.

S&P's stable outlook reflects the rating agency's anticipation that during the next two years, the city will maintain its strong liquidity and that fixed-charge coverage will meet or exceed levels forecast through fiscal 2017, and exceed levels forecast for fiscal years 2018 and 2019, analyst Paul Dyson said.

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