Oscar is going to Wall Street.
Well, Oscar’s parents, anyway. The Academy of Motion Picture Arts & Sciences is floating a $35 million bond issue this month to fund the planned move of its film archives into a new home in Hollywood.
AMPAS acquired a building at 1313 Vine St. last year to accommodate its 35,000-title archive, but it’s giving the property a pricey refurbishing. The skedded sale of tax-exempt bonds, set for July 25, reps a first-time run at the public markets for the Academy.
Academy controller Andrew Horn noted some members of the AMPAS board had experience with using bond issues in various non-Acad ventures.
Ratings agency Moody’s Investors Service on Monday assigned an Aa3 rating to the Academy’s variable-rate debt, which will be backed by revenues from the Academy’s annual awards show, and Standard & Poor’s gave the deal an AA– rating in June. Both ratings are investment grade.
New York-based Shattuck Hammond Partners is the underwriter on the deal.
The Academy’s revenues, which stem mainly from its annual kudocast, hit $54.7 million in the fiscal year ended June 30, up from $51.3 million a year earlier.
(Reuters contributed to this report.)