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.
 

Pooled Financing for L.A. Redevelopment

In 2006, De La Rosa & Co. served as book-running Senior Manager on the $34.5-million pooled financing for the City of Los Angeles’ Community Redevelopment Agency. De La Rosa presented several structuring options to meet CRA objectives, including the use of a 1% yield spread at the Financing Authority level to enhance the overall credit. DLR structured the financing without a yield spread to adhere to the agency policy of maintaining complete separation between project areas.

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Tax Exempt Fixed-Rate Bonds - A majority of the securities we buy and sell carry fixed interest rates. For clients’ new issues, we employ various coupon structures, call features, discounts and premiums to generate demand for each section of the yield curve. We combine our unique knowledge of the state’s investors with the science of efficient structuring to deliver the lowest interest rates to clients. By focusing on the California market, De La Rosa & Co. delivers benefits that other general-market firms are hard-pressed to match.

Taxable Fixed-Rate Bonds - De La Rosa actively trades money market securities, U.S. Treasuries and Agencies, investment-grade corporate debt, mortgage-backed securities including GNMA, FHLMC & FNMA collateral, CMOs, asset-backed and CMBS securities. Our understanding and expertise in securities ranging from high grade to below investment grade enables our firm to consistently add relative value for our customers’ portfolios.

Variable-Rate Bonds & Remarketing - De La Rosa & Co. often recommends variable-rate bonds to our issuing clients to reduce their interest costs. The average tax-exempt variable interest rate paid by our high-grade issuers was 3.34% in 2006. We serve as Remarketing Agent for more than $2.2 billion of taxable and tax-exempt variable-rate bonds.

Derivative Structures - Interest rate swaps, rate locks, synthetic rate structures, and other derivative products can reduce borrowing costs and hedge market risk by converting fixed- to variable-interest rates, or vice-versa. These products can be extremely useful for the right client in the right market. Before recommending their use, though, we assess the applicability of derivatives to a client’s needs, and fully explain the risks and rewards.


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