Academy is building the world’s leading movie museum in the heart of Los Angeles
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.
About Wells Fargo
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About Government & Institutional Banking
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business supporting more than 4,000 government, education, nonprofit,
and healthcare clients across the United States. Unique in the industry,
GIB has organized specialized commercial banking and capital markets
teams under one business, offering an integrated approach to provide the
most value for its clients. GIB's Education and Nonprofit
Banking group works with education providers in public and private
schools, colleges, and universities and with charitable institutions,
social service organizations, cultural institutions, professional
associations, labor unions, and other nonprofit organizations.
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and its subsidiaries, including Wells Fargo Bank, N.A.
