HomeMy WebLinkAbout08-09-12 TSHA Agenda Packet TEXAS *&
STUDENT HousING
AGENDA
BOARD OF DIRECTORS OF THE
TEXAS STUDENT HOUSING AUTHORITY
(AN INSTRUMENTALITY OF THE TOWN OF WESTLAKE)
August 9, 2012
5:30 PM
TEXAS STUDENT HOUSING OFFICE
3 VILLAGE CIRCLE, COUNCIL CHAMBERS/MUNICIPAL COURT ROOM
WESTLAKE, TEXAS
1. CALL TO ORDER
2. DISCUSS AND CONSIDER POSSIBLE REFINANCING OF AUSTIN BALLPARK
PROPERTY.
3. ADJOURN
ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION
AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS
551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT
CODE.
CERTIFICATION
I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle,Westlake,
Texas, on August 3, 2012, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code.
Kelly dward ecretary
If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town
Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you.
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The Ballpark at Austin
Proposed Restructuring Highlights
July 18,2012
Current Capitalization Issued Outstanding 711112
Senior Bonds $34,125,000 $28,870,000
Junior Bonds $2,470,000 $2,365,000
Subordinate Bonds $3,000,000 $3,000,000
Total $39,645,000 $34,205,000
• All Bond series are presently in default
• Debt service on Senior Bonds is being paid by the MBIA insurance policy
o Default exists under the MBIA insurance policy
• Junior Bonds haven't been paid for several years
• Subordinate Bonds haven't been paid for several years
• MBIA is seeking to eliminate exposure to the Project and discontinue future claims payments
• MBIA has all rights and remedies, including the ability to foreclose
• Emet is in advanced discussions to acquire MBIA's interest and all Senior Bonds
o Emet will also acquire MBIA's rights and remedies, including right of foreclosure
• Instead of foreclosing and taking ownership of the Project,Emet proposes to work with TSHA
to restructure the debt obligations and for TSHA to keep the property
• Will right-size the debt
• Will cleanse and remove the stigma of being a defaulted borrower
• TSHA will retain ownership and continue to provide scholarships to students
• Plan to undertake a consensual,friendly foreclosure to extinguish all prior indebtedness
o Need to research foreclosure and maintenance of property tax abatement
• Plan to restructure the senior debt and eliminate the existing subordinate debt
• Senior Bonds currently outstanding: $29MM
• Estimated as-is property value: $30MM
• In-place NOI: $2MM
• Current DSC on Senior Bonds: 0.9x
Preliminary restructuring assumptions
• Obtain $19MM in new, senior loan financing
• From FNMA, FHLMC,or other lender
• Will consider Council's preferred lender, if applicable
• Or, new tax-exempt bond issue
• Loan will be non-recourse
• No cash equity will be required from TSHA
• Emet to provide$IOMM in subordinate financing
• Will be structured with both a current pay and an accrual feature
• Will defer interest payments for a period of time to ensure proper debt service coverage
• Non-payment of interest will not create a default
• Summary of restructured financing:
o $19MM in senior debt
o $1OMM in subordinate debt
o $29MM in total debt
o LTV: 63%on senior debt,96% including subordinate debt
o DSC: 1.75x on senior debt, 1.1 Ox including subordinate debt(current pay)
0 5.0%blended current-pay interest
o $1.8MM in total current-pay debt service