PHOENIX — CIVICVentures, an Alaska non-profit, is selling $90 million of tax-exempt refunding bonds next week.
The revenue bonds, rated AA-minus by Fitch Ratings and A by Standard & Poor's, are scheduled to price Aug. 13 and will be used to refund a 2006 bond issuance that was used to build Anchorage's Dena'ina Civic and Convention Center. CIVICVentures was created for that financing. Citi is the lead underwriter on the deal.
Anchorage, the largest city in Alaska with a population just over 300,000, has a tourism-heavy economy because it acts as one of the primary ports of entry to the state's many visitors. The bonds are an obligation of CIVICVentures, and are secured by hotel room taxes and a contribution by the municipality. The municipal contribution is $500,000, increased or decreased by the percentage change in room tax collections from the previous year.
Room tax revenues have risen in recent years, according to an investor presentation, including an 8.5% increase in 2014.
The bonds are not obligations of Anchorage.
