LA Unified School District Secures Groundbreaking Bond Deal

The Los Angeles Unified School District has successfully negotiated a $2.9 billion tax-exempt bond transaction, recognized by The Bond Buyer in the Deal of the Year awards under the Far West category. Orrick acted as disclosure counsel for the school district. This achievement is particularly significant as it involved refunding the Build America Bonds (BABs) initially issued under the American Recovery Reinvestment Act of 2009, designed to allow tax-exempt bond issuers to benefit from an interest subsidy. However, Congress later reduced these subsidies, prompting LA Unified to convert to tax-exempt bonds in 2024 to mitigate subsidy loss risk. This strategic transition has been lauded not only for its financial prudence but also for setting a precedent in market accessibility for future issuers aiming to ensure similar savings and risk management.