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Report on the closing of the Department's Residential Mortgage Revenue Bonds 2025 Series A (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.
On January 16, 2025, the Department provided a report informing the Board of intent to issue Residential Mortgage Revenue Bonds Series 2025 Series A (Tax-Exempt) in the amount of $175,000,000. The Preliminary Official Statement (POS) was published January 8, 2025. The Retail Order Period was January 13, 2025, and the Institutional Order Period was on January 14, 2025. The Bond Purchase Agreement (BPA) was signed on January 14, 2025, and the deal was closed on February 12, 2025.
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 Jefferies as Book Running Senior Manager, RBC Capital Markets and Morgan Stanley as co-senior managers, with Ramirez & Co., Inc., Piper Sandler & Co. Wells Fargo Securities and Loop Capital Markets LLC, as co-managers.
The 2025 A 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 2025 A 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 serial bonds, par, discount, and premium term bonds, and a premium PAC (Planned Amortization Class) bond.
The par amount of 2025 A Bonds sold was $175,000,000, and the premium received was $6,238,101.05 for total 2025 A Bond proceeds of $181,238,101.05. The premium will fund down payment and closing cost assistance for loans originated through this bond issuance, as well as a portion of t...
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