Kutak Rock is Bond Counsel in The Bond Buyer’s ESG/Green Bond Deal of the YearNews | December 5, 2019
Kutak Rock, led by Michael Thomas, served as bond counsel to the Los Angeles County Metropolitan Transportation Authority (LACMTA) for a $545 million offering of Proposition C sales tax revenue bonds, which included $418.5 million second-party-verified green bonds. The Bond Buyer named the deal the inaugural winner in its new ESG/Green category. The transportation issuance was the second largest green deal in 2019, and the second largest green offering in California history.
Proceeds from the bonds, which are secured by 80% of the half-cent Proposition C sales tax revenues on all taxable sales in Los Angeles County, will be used to finance rail, bus and highway transit system projects, including some that have been identified as environmentally beneficial. Because the deal attracted much outside interest, its financing allowed the LACMTA to achieve lower rates than any Proposition C issuance in the past six years.
Mr. Thomas was assisted by Jake Ediger, an associate in the firm’s public finance group.
The Bond Buyer’s “Deal of the Year” honors issuers who drive innovation in public finance and recognizes outstanding municipal bond transactions. This year, the number of categories increased to 10, including three new additions: ESG/Green, Public-Private Partnership (P3), and Innovation, the last of which replaces the Non-Traditional category, now retired. The 2019 awards considered deals that closed between Oct. 1, 2018, and Sept. 30, 2019.