Westhoff, Cone & Holmstedt

City of Angels

Success Stories
City of Angels - Greenhorn Creek

Westhoff, Cone & Holmstedt sole managed $8,000,000 Senior Reassessment Revenue Bonds and $1,200,000 Subordinate Reassessment Revenue Bonds in January 2006 for the Angels Public Financing Authority. The senior bonds are insured by Radian Asset Assurance and rated "AA". Collectively, the bonds were issued in order to (i) purchase $8,781,144 of Local Obligations of Greenhorn Creek Reassessment District, (ii) fund a Reserve Fund, and (iii) pay costs of issuance. In turn, the proceeds of the Local Obligations were used to refund in full the outstanding debt of the District. We originally underwriter the first series of bonds for Greenhorn Creek in 1995 and a second series in 1997; then we advance refunded those series in 1998, taking advantage of favorable market conditions despite the fact that the District had not had much time to progress in home building. Given the prior advance refunding, we had to wait until this year before we could accomplish a current refunding. The primary challenges presented by the latest Greenhorn Creek refunding were twofold: (1) the relatively small size of the District (458 lots including commercial and golf course uses) dissuaded "AAA" bond insurers from participating, and (2) the District was only about 51% built out. Once again through our diligent efforts we successfully solicited bond insurance from Radian Asset Assurance, thus resulting in a rating of "AA" for the senior bonds. Furthermore, we negotiated a partial Reserve Fund Surety that helped reduce the principal amount of refunding debt. We accomplished all this in part by emphasizing the desirability and strong creditworthiness of the Greenhorn Creek development, which includes 454 single family lots in an attractive neighborhood with a rustic feel surrounding a golf course and country club with beautiful views of Calaveras County. Based on our marketing efforts and financing structure, the Greenhorn Creek refinancing achieved average annual savings of approximately $88 per home and over $2,100 for the golf course.

| HOME | CONTACT US |