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Partnership Formed to Refinance Texas Housing Agency Revenue Bonds

Strategic Insights

— 1 min read

Bailey Capital Corporation has formed a partnership with a major financial company to purchase and refund $34 million in Texas Housing Agency Multi-Family Housing Revenue Bonds, provided that certain conditions are met. The bonds in question are guaranteed by Mutual Benefit Life Insurance Company, which is currently in rehabilitation. The partnership's purchase of the bonds is contingent upon the completion of a bankruptcy proceeding of the project owner, approval from the New Jersey court, bondholder approval, and approval from the Texas Department of Housing and Community Affairs.

Key Takeaways:

  • The partnership, led by Bailey Capital Corporation, has entered into agreements with Bank One, Texas, N.A., to purchase $34 million in Texas Housing Agency Multi-Family Housing Revenue Bonds.
  • The bonds in question are guaranteed by Mutual Benefit Life Insurance Company, which is currently in rehabilitation.
  • The purchase is contingent upon several conditions, including completion of a bankruptcy proceeding, approvals from the New Jersey court and Texas Department of Housing and Community Affairs, and approval from bondholders.
  • Bondholders will be sent detailed materials regarding the proposed transaction before year-end.
  • The agreements provide for payments to bondholders of cash and a Class Four claim in The Mutual Benefit Life Insurance Company rehabilitation proceeding.
  • MBL Life Assurance Corporation is overseeing the transaction.
  • James Goodness, a representative of MBL Life Assurance, is available for comment at 201-481-8353.

Statistics:

  • The total value of the Texas Housing Agency Multi-Family Housing Revenue Bonds to be purchased is $34 million.
  • The bonds are divided into three series: 1983 Series B (Chasewood) - $13,500,000, 1983 Series A (Folsom I) - $8,250,000, and 1985 Series A (MacArthur I Project) - $12,250,000.
  • The factoring of the bonds was announced on October 23, 1995.

Sources:

  • "Bailey Capital Corporation Forms Partnership to Refinance Texas Housing Agency Revenue Bonds" (no date provided)
  • James Goodness, MBL Life Assurance, 201-481-8353

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