Three Orrick Transactions Win Bond Buyer Deal of the Year Awards

The Bond Buyer | December.06.2016

Orrick was bond counsel on three financings that have been awarded the Bond Buyer’s Deal of the Year for 2016. They include:  

San Diego Unified School District’s Rating Upgrade on its GO Bond – Named 2016 Overall Deal of the Year

Orrick’s General Obligation Bond Group has led an effort to improve the ratings and reduce the borrowing costs associated with California General Obligation (GO) Bonds for all school and community college districts, cities, counties and other local governments that issue them. On November 4, 2015, after Orrick helped write state legislation and then delivered a legal opinion to rating agencies on the “special” nature of the funding for these bonds, Fitch assigned a “AAA” rating to a $550 million San Diego Unified School District GO bond. The Orrick team on this transaction was led by John Palmer and Mary Collins.

In describing the Deal of the Year at a December 1 awards gala, Editor in Chief of the Bond Buyer Michael Scarchilli noted: “Our choice is a deal that has caused a sea change in a type of bond that accounts for a quarter of the issuance in the nation’s largest market, a transformation that could save taxpayers billions of dollars. In addition, this year’s honored deal introduced a model that has already been taken advantage of by nearly two dozen other issuers.”

DC Water’s Environmental Impact Bond – Named 2016 Non-Traditional Deal of the Year

Orrick advised Goldman Sachs Urban Investment Group and the Calvert Foundation in their purchase of a $25 million, tax-exempt Environmental Impact Bond – the first such bond issued in the United States. The DC Water and Sewer Authority issued the bond to fund the green infrastructure project in its DC Clean Rivers Project, a $2.6 billion program to control stormwater runoff and improve the District’s water quality. The Orrick team on this transaction was led by Darrin Glymph.

Chicago Health System’s $1 Billion Debt Restructuring – Named 2016 Healthcare Deal of the Year

Orrick served as underwriter’s counsel to JPMorgan in connection with Presence Health’s massive debt refinancing. The hospital system took out a bridge financing and restructured its entire debt portfolio with a $1 billion issue led by JPMorgan. The sale marked the largest high-yield not-for-profit healthcare deal in recent history and generated significant savings for Presence to reinvest and focus on its turnaround plan. The Orrick team on this transaction was led by Jenna Magan.