UK: Orrick Completes Largest Municipal Finance Transaction in U.S. history and Breaks Own Record
Last Updated: 7 November 2002

Orrick, Herrington & Sutcliffe LLP acted as co-note Counsel to complete the largest municipal finance transaction in history sold on a single day, the $9,000,000,000 State of California 2002-03 Revenue Anticipation Notes which was completed on October 16, 2002.

This breaks the previous transaction record of $5.7 billion in November 2001 also held by Orrick.

The current sale was only the first part of a two-part note programme as California will issue a further $3.5 billion of notes in early November. The Notes were issued to fund the State’s cash management requirements for the 2002-2003 fiscal year, including the need to be able to repay $7.5 billion of short-term warrants sold last June which mature between October 2002 and January 2003. The new Notes had to account for the weak stock market and a sluggish economy, which have depressed State revenues.

Robert Feyer, Orrick’s lead partner on the transaction, explained, "We faced a severe timing challenge as the state budget was only passed in early September, more than two months late, and Note proceeds had to be received by mid-October to assure adequate cash flow coverage for large obligations coming due that month. The issue consisted of fixed and variable rate notes, and used some of the largest municipal interest rate swaps ever undertaken, totaling $4.245 billion."

Feyer was assisted on the transaction by attorneys Bill Donovan, Perry Israel, and Kendra York, all located in the firm’s Sacramento office.

Curls, Brown & Duran in Los Angeles, served with Orrick as co-note counsel.

Orrick, Herrington & Sutcliffe

Orrick is one of the world’s leading international finance and corporate law firms with more than 600 lawyers in offices in New York, San Francisco, Silicon Valley, Washington DC, Los Angeles, Sacramento, Seattle, Paris, London, Tokyo and Singapore.

The Public Finance Group

Orrick is the leading bond counsel firm in the US, with a public finance department ranked number one for more than a decade. Orrick's public finance attorneys have extensive experience in all types of municipal financings for state and local government agencies, and represent private borrowers, credit providers, investment providers, derivative product providers and others, both in primary and secondary market transactions.

The London Office

The firm opened its London office in 1998 driven by its importance as a critical business and financial centre for clients. Orrick has built its team in London with talented lawyers qualified in the UK, US and Europe, who work in international cross-border teams with Orrick lawyers in across the US and Far East.

The firm’s world wide strategic practices are:

  • Global Energy, Communications & Infrastructure
  • Project & Structured Finance
  • Corporate
  • Commercial Litigation

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