Eli Broad arranging bond sale for his new art museum

The bond package totals $150 million, with maturities going out 10 years. Proceeds will be used to finance and build the Broad Art Foundation museum. Pricing comes Thursday. From the Bond Buyer:

Ken Naehu, a portfolio manager at Bel Air Investment Advisors in Los Angeles, said he would expect the deal to get a great reception from the market. He said the Broad bonds appear similar to the highly rated J. Paul Getty Trust bonds that are backed by an endowment and at times trade like pre-refunded bonds or better. "In this type of marketplace where a lot of investors are putting yield aside for safety or security, those are the types of bonds that are sought after," according to Naehu.

Broad's foundations have pledged to cover debt service and make annual payments of $12 million for 10 years to enable the museum to pay for operations, according to a report by Moody's. Morgan Stanley is the underwriter on the deal.