HomeMy WebLinkAbout15, Old Greenwood Refinancing
Action Item # 15 January 15, 2014 Bonds for Old Greenwood CFDConsideration of Refinancing
Refinancing 2 Callable on March 1, 2014 at par (no penalty)–Paid by property owners in the CFD via property tax roll–Rates range from 5.00% in 2014 to 6.10% in 2033–Amortized over 19.5
years, through September 2033–Current obligation is $11.6 million–rated-secured and non-Land–Issued to construct and acquire various public improvements–the Old Greenwood Community
Facilities District (CFD)In 2003, Truckee Donner PUD issued Special Tax Bonds for •Background / History Old Greenwood CFD Bonds
Background / History Old Greenwood CFD BondsRefinancing 3 the refundingNovember, identified a sophisticated investor interested in The financing team continued to monitor the market,
and in •postponeddecline in a quarter century, and the bond sale was In June 2013, the bond market suffered its worst price •26, 2013June 5, 2013, and the bond sale was scheduled for
June Documents were drafted and approved by the Board on •to pursue the refinancing of the Old Greenwood CFD bonds At the April 3, 2013 Board Meeting, the Board directed staff •
New Information Old Greenwood CFD BondsRefinancing 4 Call the 2003 Bonds–March 1Send call notices for the 2003 Bonds–January 29 Close transaction and deposit proceeds with Trustee–January
28 Complete the final documentation–January 22 Lock the interest rate for the refunding–January 16 If the Resolution is adopted, the next steps will be:•AgreementThe financing team
has drafted the Resolution and Trust •BondFinance, provided a term sheet to purchase the Refunding On January 6, 2014, the investor, Western Alliance Public •
Fiscal Impact Old Greenwood CFD BondsRefinancing 5 The costs of issuance will be funded by 2014 Bond proceeds–No cost to Truckee Donner PUD•Typical savings of a $4,000 annual assessment
is about $200 annually–year bond term-18.5Total economic benefit of about $3.2 million over the –shortening of the bond term by one year–lower issuance amount –No reserve fund is required
–Savings are about $180,000 per year –CFD property owners benefit:•
Recommendation Old Greenwood CFD BondsRefinancing 6 issuance of the 2014 Special Tax Refunding Bond03 authorizing the sale and -Adopt the Resolution 2014•