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Report on the closing of the Department's Residential Mortgage Revenue Bonds 2025 Series D (Non-AMT)
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BACKGROUND
On October 10, 2024, the Board approved the issuance of Mortgage Revenue Bonds for Fiscal Year 2025, in an amount not to exceed $1.1 billion.
The Department on July 27, 2025, provided a report informing the Board of intent to issue Residential Mortgage Revenue Bonds Series 2025 Series D (Tax-Exempt) in the amount of $250,000,000. The Preliminary Official Statement (POS) was published August 5, 2025. The Retail Order Period was August 12, 2025, and the Institutional Order Period was on August 13, 2025. The Bond Purchase Agreement (BPA) was signed on August 13, 2025, and the deal was closed on September 17, 2025.
Financing Team The financing team consisted of Bracewell LLP, Bond Counsel; McCall, Parkhurst & Horton, L.L.P., Disclosure Counsel; CSG Advisors, Financial Advisor; and an underwriting team led by Jefferies as Book Running Senior Manager, RBC, and Morgan Stanley as co-senior managers, with Ramirez & Co., Inc., Piper Sandler & Co. Wells Fargo Securities, J.P. Morgan, and Loop Capital Markets LLC, as co-managers.
Use of Proceeds The Series 2025D Bonds were issued for the primary purpose of providing funds for the purchase of mortgage-backed, pass-through certificates, including providing down payment and closing cost assistance for Assisted Mortgage Loans. The Mortgage Certificates purchased with the proceeds of the Series 2025 D Bonds will be guaranteed as to timely payment of principal and interest by Government National Mortgage Association.
Bond Structure The 2025D Non-AMT bonds are structured with semi-annual par serial bonds from 1/1/2027 through 7/1/2037, par term bonds due in 2040, 2045, 2050 and 2055, and a 5.50 year average life Premium PAC bond structured pro rata @ 75% - 500% PSA with a 6.25% coupon, priced to yield 3.95%.
Ratings Moody's: Aa1
S&P: AA+
Borrowing Costs Net NIC 5.311017%
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