The Successor Agency to Redevelopment Agency of the City and County of San Francisco issued $119.8 million in bonds on behalf of the city’s Mission Bay South neighborhood.
The bonds mature between 2024 and 2043, yielding between 3.31% and 4.25%. S&P Global Ratings assigned the securities an insured rating of AA and an underlying rating of A-.
The community facilities district (CFD) that manages the neighborhood will use the proceeds to refund previously issued securities.
“The rating reflects such factors as our view of the CFD’s very strong economic fundamentals and adequate district characteristics,” S&P analyst Brian Phuvan said in a press release.
Mission Bay South is a 237-acre district on the west side of San Francisco, bordering the San Francisco Bay. It includes residential, hotel, office, parking, and retail properties, as well as the Medical Center at the Mission Bay campus of the University of California, San Francisco, and the Chase Center, home to the NBA’s Golden State Warriors.
The CFD will use the issuance proceeds to refund bonds it sold in 2005 and 2013.
The bonds are special, limited obligations of the agency, payable by revenue from special taxes levied on top of property taxes. Only about one quarter of the district is subject to special taxes, with UCSF Medical Center and the Chase Center combining to provide more than half of annual special tax revenue.
Stifel, Nicolaus & Company, Inc and Piper Sandler & Co served as underwriters on the issuance, purchasing the bonds for $130 million. The price reflected a premium of more than $10 million.