Opus Bank’s Public Finance Division Provides Lease Revenue / Tax Allocation Refinancing for the City of Mission Viejo, CA
Overview of Transaction
The City of Mission Viejo (the “City”) was incorporated in 1988 and is now home to over 96,000 people.
As a part of its economic development program, the City assisted with the financing of parking improvements at the Shops at Mission Viejo, a 1.1-million sq. ft. super-regional mall with over 150 stores, located within the City. The improvements were financed in 1999 through variable interest rate bonds secured by certain property and sales tax revenues generated by the Mall.
Significance of Transaction
Opus Bank (“Opus”) refinanced a portion of the outstanding bonds at a long-term, fixed interest rate.
The refinancing fixed the interest rate on the outstanding debt, simplifying the debt management process, providing debt service predictability, and eliminating costly variable rate fees, resulting in savings for the City.
Opus Bank's Role
Opus worked with the City and their financing team to provide the financing on a quick turn-around schedule, ensuring optimization of tax-payer funds and efficient utilization of the City’s administrative resources.