Calaveras County: DLR has closed on two land-secured refundings for Saddle Creek, a golf community in the Sierra Nevadas. The Sales and Trading Desk found buyers who understood the developer’s long-term strategy.  •  Palmdale: DLR was sole Senior Manager on federally taxable Certificates of Participation so the city could acquire 600 acres for a 550-megawatt power plant to attract and retain businesses.  •  Chowchilla: DLR senior-managed a special bond for critical infrastructure improvement until development impact fees can be raised to support $93 million in residential, commercial and industrial projects.  •  Pittsburg: DLR was Senior Manager on a tax-allocation bond that raised almost $100 million for housing and other projects, and saved the city’s Redevelopment Agency another $3.5 million by refinancing earlier bonds.  •  Chula Vista: DLR senior-managed a tax-allocation bond after Chula Vista demonstrated that the future assessed value of the city’s Bayfront-Town Centre offsets a highly concentrated tax base.  •  Los Angeles: As book-running Senior Manager, DLR structured a $34.5-million pooled financing for the city’s Community Redevelopment Agency without a yield spread to adhere to the CRA policy to complete separation between project areas.  •  DLR senior-managed refunding of all outstanding debt at Ontario Airport, increasing the L.A. Department of Airports’ flexibility to define net revenues and its debt-service reserve fund – and reaffirm its “A” rating.  •  Long Beach: The city recently issued more than $190 million in redevelopment project financing, including $115 million of taxable bonds, in a Marks-Roos pooled issue to fund projects in five areas.  •  From naval base to housing space: Few could envision a new community when the Alameda Point Naval Air Station was decommissioned a decade ago. Today, a highly successful development with 300 homes occupies part of the old base.  •  Riverside County: DLR senior-managed a $25-million Mello-Roos financing to improve street, water, sewer, and other public facilities at Lake Hills Crest, a development with 512 single-family detached units.
 

Maximum Proceeds for Pittsburg in Crowded Financial Market

$169,825,000
Redevelopment Agency of the City of Pittsburg
Tax Allocation Bonds, 2006 Series A, B, C and A Housing Bonds
In December 2006, De La Rosa & Co. served as Senior Manager on a $170-million Tax Allocation Bond for the City of Pittsburg’s Redevelopment Agency. The agency’s objectives were to maximize tax-exempt and taxable proceeds for non-housing projects, maximize taxable proceeds for housing projects, and refinance its 1993B Bonds.

De La Rosa developed a complex plan involving multiple series of bonds integrating fixed rates and interest rate swaps, supported by a thorough marketing campaign by the Sales and Trading Desk. The bonds were priced into a national market with about $12 billion in deals forthcoming. Because a majority of the issue was concentrated in the term bonds, the underwriting team offered different couponing options in the latter maturities to attract the broadest spectrum of investors.

Pittsburg achieved its goals and obtained the lowest cost of borrowing, thanks to De La Rosa’s financing and marketing expertise. The agency raised almost $90 million for non-housing projects with the help of an interest-rate swap, as well as nearly $10 million in housing proceeds, and saved about $3.68 million (about 9.2%) by refinancing the 1993B Bonds.
Back to Success Stories