Ravenna Metropolitan District Closes on $46.9 Million in Refinanced Debt Lower Interest Rates Means Tax Savings for District Residents
Littleton, Colo.
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December 18, 2023 08:15 AM Mountain Standard Time
The Ravenna Metropolitan District has successfully concluded the refinancing of the district’s previously outstanding Series 2017 debt, totaling $48.0 million in outstanding principal and accrued interest.
The refinancing replaces three series of debt with differing payment priorities at a blended interest rate of 6.2 percent -- providing significant annual tax savings for district residents.
The refinancing was successfully priced on December 6, 2023, with the refunding bonds totaling $46.9 million at a new, lower interest rate of 4.6 percent. Institutional investor demand was robust and was seven times oversubscribed, meaning there was $300 million in orders for $46.9 million in bonds. The transaction closed on December 14, 2023.
The refinance was made possible by recent growth in home development and assessed valuation of completed homes in the district. An underlying BBB- investment rating from S&P Global Ratings and the opportunity to qualify for municipal insurance through the Assured Guarantee Municipal Corp. allowed the district’s investment bank, Piper Sandler & Co., to market the proposed bonds to potential investors at a lower interest rate.
District residents will realize, on average, nearly $1,880 in District property tax savings in 2024, and $4,455 of average annual District property tax savings through the term of the bonds (2024-2054) due to the reduction in mill levies to service the 2023 refinancing bonds.
Piper Sandler & Co.’s Special District Group works with special districts across Colorado.
The Ravenna Metropolitan District is a quasi-municipal corporation organized and operated pursuant to provisions set forth in the Colorado Special District Act. Located in Douglas County, Colorado, the district is authorized to finance improvements including roadway improvements, emergency access roads, street landscaping, street lighting, monumentation, signage, safety controls, landscaping, water, sanitary sewer, storm water, television relay, mosquito control and park and recreation improvements and facilities.
Contact Details
Ravenna Metropolitan District
Kevin Collins
+1 720-956-1600
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