The San Francisco Airport Commission refunds $110 million in fixed-rate revenue bonds with new variable-rate bonds to lower its overall interest cost.  •  The San Dieguito Union High School District responds to the turbulent auction-rate market by converting $90 million in ARS bonds to fixed-rate securities.  •  De La Rosa & Co. generates $41 million of retail orders to reduce yields and save the L.A. County Metropolitan Transportation Authority significant interest costs on a $25-million Sales Tax Revenue Bond issue.  •  The L.A. Community Redevelopment Agency obtains a strong investment-grade rating on a $12.5-million Taxable Tax-Allocation Bond issue for the Westlake Recovery Project.  •  Despite a tough market, Beverly Hills successfully refunds $31 million in water revenue bonds and $17 million in wastewater revenue bonds for economic savings.  •  The Gridley Redevelopment Agency clears various hurdles caused by tightening credit in the municipal market to successfully execute its first tax-allocation bond financing.  •  Riverside issues unenhanced Bond Anticipation Notes to mute the effects of the collapse of auction-rate securities and prudently control interest costs.  •  The Sacramento Regional County Sanitation District restructures $50 million in auction rate securities with better performing, direct pay variable-rate bonds backed by letters of credit.  • 
 

Chowchilla Funds Infrastructure to Maintain Explosive Growth

$8,615,000
City of Chowchilla
Community Facility District No. 2006-1, Improvement Area 1
Special Tax Bonds, Series 2007
In June 2007, De La Rosa & Co. served as sole Senior Manager on an $8.6-million special tax financing for Chowchilla. The city’s master plan identified $93 million of infrastructure critical for proposed residential, commercial and industrial projects. Development impact fees would fund a large portion of the improvements, and bond proceeds would finance projects that must be built before impact fees can support them. The 2007 bonds were issued as the first of three series for the Community Facilities District, and raised $6.65 million in net proceeds.

Property currently in the District represents Improvement Area 1, which will support nearly 57% of the anticipated bonds issued. Area 1 contains residential and commercial properties owned by 14 different owners on 820 acres. Future annexations will form new improvement areas, which will fund their share of the improvements.

The financing was very successful due to low interest rates on the bonds. Because of De La Rosa’s comprehensive pre-marketing effort and the substantial upside potential of the proposed projects, the bonds were priced at near-record lows for non-rated interest rates. Re-offering yields ranged from 3.95% to 5.08%. DLR priced the bonds very aggressively compared to other non-rated, land-secured bonds in the market at the time.
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