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.  • 
 

City of Riverside

$25,820,000
Community Facilities District No. 04-2
Special Tax Bonds

$4,280,000
Community Facilities District No. 89-4
Special Tax Bonds
Community Facilities District No. 04-2
In 2005, De La Rosa & Co. was Senior Manager on a $25-million Mello-Roos financing for Riverside County. The proceeds financed street, water, sewer, flood-control facilities, and other public improvements required to develop five residential neighborhoods with 512 single-family detached units.

Mass grading and infrastructure improvements on Lake Hills Crest were getting underway as the bonds were sold. The project’s start-up nature carried certain risks. The development was owned by a single property owner, and the appraised value-to-lien of the bonds was about 4:1.

De La Rosa was committed to securing the lowest possible rates for the issuer. The firm’s sales force worked with the banking team to build investors’ confidence in the project, organizing several conference calls and visits to the site before the sale. The bonds achieved a 5.01% yield on its 30-year non-rated financing, helping the District meet its funding target.

Community Facilities District No. 89-4
De La Rosa was Senior Manager on a $4.3-million issue for Riverside County in 2005 to defease and refund a 1991 Special Tax Bond. The bonds had gone into default in 2000, after the Communities Facilities District fell behind on tax payments during the 1990s. Foreclosure proceedings were dismissed in 2002, following an agreement between the District and a new property owner appointed by the Superior Court.

The 2005 bonds created a new 25-year debt obligation for the District. De La Rosa helped the County and the new property owner to devise various scenarios to apportion new special taxes while allowing existing owners to maintain special tax payments under the 1991 bonds. The new bonds were secured by District properties.

The 2005 bonds produced about 10% in NPV savings. The aggressive interest rates that De La Rosa achieved for Riverside County will mean lower overall tax payments for new and existing owners.
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