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.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Arts stories:
Northeast objects of art
The Wallis opens with Graham, Verdi blows out candles
Art, artists and California’s ribbons of road
Joseph Gatto as drawn by Kent Twitchell
Gehry and Salonen discuss Disney Hall

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner

Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook