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Report on the closing of the Department's Residential Mortgage Revenue Bonds 2024 Series C (Tax-Exempt) and Series D (Taxable)
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BACKGROUND
On September 7, 2023, the Board approved the issuance of Mortgage Revenue Bonds for Fiscal Year 2024, in an amount not to exceed $1.1 billion.
On May 9, 2024, the Department provided a report informing the Board of intent to issue Residential Mortgage Revenue Bonds Series 2024 Series C (Tax-Exempt) in the amount of $150,000,000 and D (Taxable) in the amount of $100,000,000. The Preliminary Official Statement (POS) was published June 17, 2024. The Retail and Institutional Order Periods were initiated and completed on June 24, 2024. The deal was closed on July 18, 2024.
The financing team included Bracewell LLP, Bond Counsel; McCall, Parkhurst & Horton, L.L.P., Disclosure Counsel; Stifel, Nicolaus & Co., Inc., Financial Advisor; and an underwriting team led by Ramirez & Co., Inc. as Book Running Senior Manager, Jefferies and RBC as co-senior managers, with Morgan Stanley, Piper Sandler & Co. Wells Fargo Securities and Loop Capital Markets LLC, as co-managers.
The 2024 CD Bonds were issued for the primary purpose of providing funds for the purchase of mortgage-backed, pass-through certificates, funding loans for down payment and closing cost assistance, and paying lender compensation related to the Mortgage Loans.
The 2024 C Bonds were structured to maximize premium received while keeping mortgage rates as low as possible. Fixed rate and tax-exempt, the bond structure included par and premium serial bonds, par and premium term bonds, and a premium PAC (Planned Amortization Class) bond.
The 2024 D bonds were structured to be front-loaded to reduce cost of funds. Fixed rate and taxable, the structure included par serial bonds, par term bonds, and a modest premium $102.515 PAC (Planned Amortization Class) Bond.
The par amount of 2024 C Bonds sold was $150,000,000, and the premium received was $7,382,512.00 for tot...
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