Travis County Commissioners Court
May 8, 2007
Health Facilities Development Corporation
Now let's call to order the agenda Travis County health facilities development corporation. One item which is to receive comments regarding the proposed issuance by the Travis County health facilities development corporation of its health care revenue bonds in an aggregate face amount not to exceed $170,000,000 the proceeds of which will be loaned to longhorn village.
>> our attorney is not able to attend today, but I do have that proper notice was published in the american-statesman more than 14 days ago for this hearing. Michael spain with fulbright & jaworski with the bond counsel is here and william travis with crsa, who is a development company for this project is also here. If you would like an update on the longhorn village --
>> it might be good to get a two-minute summary. A sort of summary description for the millions of residents who are viewing this meeting.
>> thank you, judge and Commissioners. Actually, I guess directors of the corporation. For the record I'm michael spain with fulbright & jaworski. We have the honor as serving as bond counsel in this transaction. I've been working closely with cliff blunt and it's always a pleasure working with him and your staff. And also working with ladd pattillo. As harvey mentioned, this bond transaction will not exceed $170 million. This is the final step in a process that started about a year and a half ago with an initial small, relatively small bond issue that was done to start the process of developing the longhorn village project. The $170 million of bonds are expected to be issued in two series, secured by a letter of credit. There will of course be no county obligation, no county liability as is always the case. This corporation took its initial action concerning this financing at its meeting on April 17th, as mr. Davis mentioned, the notice was published more than 14 days ago on Saturday the 21st of April. We will be back to you in the early part of August to ask for your final approval on this matter. We still have a lot of work to do and we'll be back to you probably in early August for that approval, and at that time we would also ask the county's approval of the approval for the hearing that you're conducting today. The investment bank for the transaction is jp morgan chase. There's -- the longhorn village folks have put together a real strong team to do this financing and we look forward to wrapping this all up probably with a closing in the early part of October of this year. I'd be happy to answer any other questions you may have about the bond financing itself or pat is here and can give you some information on the facility itself.
>> where will the facility be located?
>> it's a 56-acre site in steiner ranch adjacent to the university of Texas golf club community.
>> precinct three, I believe. Paragraph.
>> will the bonds be insured?
>> there will be a letter of credit. That will be be the basis for the ratings on the bonds. But there will not be be bond insurance.
>> okay. Letter of credit that matches the issuance amount?
>> yes. The letter of credit will be there to provide liquidity for the bonds. We'll actually purchase the bonds based on the credit rating of the bank. Not only will longhorn village agree to pay all debt service, but there will also be a letter of credit there for security as well that matches the principal amount of the bonds.
>> questions? Would anyone like to give testimony under this public hearing? Item number one under the Travis County be health facilities corporation.
>> all in favor? That passes by unanimous vote. Thank y'all very much for coming down. Looking forward to seeing you again.
>> very good. Please don't hesitate to contact us at any time either through mr. Davis or mr. Blunt if you have questions about the transaction or the project or anything along the way. Thank you all. Motion to adjourn? Second. That passes by unanimous vote.
>> you heard those motions to adjourn? You should?
>> [ laughter ]
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Last Modified:
Wednesday, May 9, 2007 1:03 PM