Transactions
Jul. 30, 2002
Bond Issue Funds New Museum in San Francisco
Partner Adam Sachs and associate Mary King of San Francisco' Folger Levin & Kahn represented two nonprofit organizations that borrowed $143 million in a floating-rate bond deal issued June 20.
Partner Adam Sachs and associate Mary King of San Francisco' Folger Levin & Kahn represented two nonprofit organizations that borrowed $143 million in a floating-rate bond deal issued June 20.
The deal, issued by ABAG Finance Authority for Nonprofit Corporations, will finance the construction of a new M.H. de Young Museum in San Francisco. The city owns and operates the museum in collaboration with the two nonprofit groups, Corporation of the Fine Arts Museums and the Fine Arts Museums Foundation.
Sachs calls the de Young, which includes American, African and Oceanic art, "one of the great museums of the Western United States." The new facility, which is replacing the old building that was damaged in the 1989 Loma Prieta earthquake, is scheduled to open in 2005.
Holland & Knight senior counsel Alex Chiu in San Francisco, along with partners Rick Crowley and Vern Watters, represented Bank of America, which provided liquidity on the deal.
The transaction involved $71.5 million of Series B, variable-rate demand securities as well as $71.5 million of Series A, auction-rate bonds.
Banc of America Securities, the underwriter for the Series B bonds, and Solomon Smith Barney, the underwriter for the Series A bonds, both were represented by Sean Tierney and John Wang of Hawkins, Delafield & Wood.
MBIA Insurance Corp., which insured both bond series, was counseled by Raymond Fehringer and Debbie Ruskin of Kutak Rock.
Bill Madison of Jones Hall served as bond counsel in the transaction.
Earlier this year, Sachs and another Folger Levin attorney represented the two nonprofits in a deal that made national headlines.
The object at the center of the deal, a violin built in 1742, was willed to the Fine Arts Museums of San Francisco by musician Jascha Heifetz. Under the deal, the museums are lending the $6 million instrument to the San Francisco Symphony for three years, to be played by concertmaster Alexander Barantschik.
Toni Vranjes
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