Title
Resolution Authorizing the Woodmen Heights Metropolitan District No. 2 to Issue Debt in the form of a Series 2020A Refinancing Loan, a Series 2020B-1 Taxable Bond and a Series 2020B-2 Tax-Exempt Bond
Presenter:
Carl Schueler, Comprehensive Planning Manager, Planning & Community Development Department
Peter Wysocki, Planning and Community Development Director
Body
Summary:
This is a request to approve issuance of formal debt for the purpose of refinancing existing debt that is an obligation of the Woodmen Heights Metropolitan District Nos. 1-3 ("Districts"). Two existing 2012 bonds and one existing 2015 bond are proposed to be refunded in their entirety, and would be replaced by a 2020A Loan and subordinate 2020 B-1 and B-2 Bonds. The existing debt is legally issued by Woodmen Heights Metropolitan District No. 1, whereas the new debt would be issued by District No. 2. However, revenue from both District No. 2 (the residential district) and District No. 3 (the commercial district) has been pledged to the existing debt, and would continue to be pledged to this new debt. These transactions would serve solely to refinance existing debt of the Districts, with no "new money" created. This series of refinanced issuances will result in the current developer held "C" bonds being converted to a marketed debt instrument.
The total par amount the three new issuances will equal about $49,574,000.
The details of these issuances are somewhat complex, given that three existing debt issuances are being converted to three new issuances with varying tax exempt statuses. In addition to the background provided below, the Districts have provided an attached presentation that provides and explains some of this detail.
The senior loan and the subordinate bonds would all be set with maturity and discharge dates of 2045, which is consistent with the maximum 40-year debt mill levy imposition term required by the service plan. The attached financial model projects t...
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