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Report on the closing of the Department's Residential Mortgage Revenue Bonds 2025 Series B (Non-AMT) and Series C (Taxable)
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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.
On April 10, 2025, the Department provided a report informing the Board of intent to issue Residential Mortgage Revenue Bonds Series 2025 Series B (Tax-Exempt) in the amount of $187,500,000 and Series C $62,500,000. The Preliminary Official Statement (POS) was published April 28, 2025. The Retail and the Institutional Order Period was on May 6, 2025. The Bond Purchase Agreement (BPA) was signed on
May 6, 2025, and the deal was closed on June 10, 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 RBC as Book Running Senior Manager, Jefferies, 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 2025B/C 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 2025B/C Bonds will be guaranteed as to timely payment of principal and interest by Government National Mortgage Association.
Bond Structure The 2025B Non-AMT bonds are structured with semi-annual par serial bonds from 7/1/2026 through 7/1/2037, par term bonds due in 2040, 2045, 2050 and 2055, and a 6.0 year average life Premium PAC bond structured pro rata @ 75% - 400% PSA to yield 4.06%.
The 2025C Taxable Bonds are structured with semi-annual par serial bonds from 7/1/2026 through 7/1/2032, pa...
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