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• <br /> • <br /> • <br /> JuranI t Me ady <br /> and tax increments are insufficient, that the bond issue may default. <br /> Because of this risk, pure revenue tax increment bonds are extremely <br /> difficult to market. <br /> For the City of Owatonna, the key to making the bond issue marketable is <br /> a willingness of a financially strong beneficiary, SPX Corp., to guarantee <br /> payments on the City's bond issue. Hence, the primary security for the <br /> bondholder became the credit of SPX, and the bonds could be marketed as <br /> a security very much like a corporate security. <br /> It would be virtually impossible to successfully market this type of <br /> revenue bond at a competitive public sale, due to the enormous disclosure <br /> and registration requirements involved. The ability of a financial advisor <br /> to understand, structure and place the revenue bond is absolutely essential <br /> for this financing approach to succeed. Juran & Moody has a track <br /> record of success in this area. <br /> Housing Finance <br /> Juran & Moody has actively financed multifamily housing facilities since <br /> the mid- 1970s. We were one of the first investment banking firms in the <br /> country to successfully underwrite tax- exempt multifamily revenue bonds <br /> secured with FHA mortgage insurance. In that instance, we not only <br /> worked closely with the project sponsor and other parties involved with <br /> the transaction, but also worked with the analyst at Standard & Poor's in <br /> New York in structuring the issue. Juran & Moody was also one of the <br /> first to apply a letter of credit to secure multifamily housing revenue <br /> bonds. This innovation was introduced in 1980 and is still being used <br /> today. The multifamily housing revenue bonds have included issues that <br /> have been secured through a variety of mortgage insurance programs <br /> underwritten by the Federal Houses Administration (FHA), Department of <br /> Housing and Urban Development (HUD), as well as letters of credit from <br /> financial institutions and commercial insurance programs. These issues <br /> have utilized Long Term Fixed Interest Rates, as well as Short Term <br /> Floating Rates to accomplish the specific needs of the project and the <br /> project's sponsor at the time the issues were underwritten. <br /> • <br /> City of Centerville, Minnesota - 17 - <br /> I <br />