SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo Securities served as sole manager for $341 million in tax-exempt revenue bonds that will fund construction of a Los Angeles museum for the Academy of Motion Picture Arts and Sciences, presenter of the Academy Awards®, among the world’s most-watched TV events. Institutional sales began Wednesday, and the bond series oversubscribed quickly.
The state-of-the-art Los Angeles museum will feature six stories of immersive galleries, an education studio, two theaters, special events spaces, a public piazza, conservation areas, a café, and a museum store. The 310,000-square-foot facility ― slated for completion in 2018 ― will feature a vast permanent collection of film-related material acquired by the Academy since the 1920s. Located adjacent the Los Angeles County Museum of Art, the Academy’s $388-million museum will create 500 construction jobs and 140 full-time jobs.
“Wells Fargo is honored to bring the Academy’s largest bond offering to the market. The offering was extremely well-received by investors,” said Phil Smith, head of Wells Fargo Government and Institutional Banking. “Investor demand was high for this offering, and we are pleased to have helped our client reduce their borrowing costs.”
“We are very pleased with how successful the bond offering has been,” said Andy Horn, the Academy’s chief financial officer. “This is an important milestone for the museum project, and we continue to build momentum as we begin construction.”
The 30-year, Aa2 fixed-rate bonds will finance an innovative museum, designed by Pritzker Prize-winning architect Renzo Piano, which will strengthen Los Angeles’ primary cultural hub. Included in the facility is a 1,000-seat screening theater under a rooftop sphere with a view of the Hollywood hills.
Representing the Academy in negotiations was Horn. Rick Chisholm, managing director for Wells Fargo Securities, and Doug Brown, director for Wells Fargo Securities, represented Wells Fargo Securities as underwriter. The Los Angeles law firm Irell & Manella LLP served as corporate counsel for the Academy.
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