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East County Wednesday, Dec. 4, 2019 7 months ago

Lakewood Ranch Community Development District 5 refinances bond

Country Club residents will see small annual savings.
by: Pam Eubanks Senior Editor

The Lakewood Ranch Community Development District 5 board agreed Nov. 21 to have MBS Capital Markets move forward with refinancing of the district’s $3.43 million bond, but it will only result in a small savings for residents of the Country Club.

Brett Sealy, the managing partner for MBS Capital Markets, said he expects a refinance could save about $24,000 annually — a roughly 6.3% reduction.

“It’s a no brainer,” CDD 5 Chairman Marty Cohn said. “It saves us money beginning in fiscal year 2021.”

It is a savings, but Lakewood Ranch Town Hall Financial Director Steve Zielinski said the CDD assessment reductions amount to roughly $25 per household annually. And although the savings won’t be as high as seen with some other bond refinancing efforts in Lakewood Ranch, he recommended moving forward.

Sealy said the district refinanced bonds once already in 2007. The bonds now have a low interest rate of 4.55% and only 12 years left until maturity in May 2031.

“If we have an opportunity to take advantage of it, let’s take advantage of it,” he said. “It’s something Lakewood Ranch residents will be thankful for.”

Sealy said the district could seek a public offering of bonds, or it could offer credit packages directly to banks. MBS recommends the latter based on the short maturity date. He said that doing so would also save money on items including bond insurance and acquiring a bond rating.

“It would be a more expeditious path toward a refinancing,” Sealy said.

A special meeting has been set for 10 a.m. Dec. 23 at Lakewood Ranch Town Hall.

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