Series 2020A General Obligation Bonds

On August 08, 2020, the District issued $36,595,000 in General Obligation Refunding and Improvement Bonds, Series 2020A (“2020A Bonds”), the proceeds of which were used to refund the Series 2013A Bonds, fund the construction of additional public infrastructure and pay the costs of issuance of the 2020A Bonds. The 2020A Bonds have a final maturity date of December 1, 2050. The principal amount of the 2020A Bonds is subject to mandatory sinking fund payments prior to their final maturity date. The 2020A Bonds were issued as tax exempt bonds bearing interest rates rate of between 4.00% and 5.00% per annum.

The 2020A Bonds are secured by and payable solely from Senior Pledged Revenue, net of any costs of collection, which is comprised of the following:

• all property tax revenues generated by the imposition of the Required Senior Debt Service Mill Levy (not to exceed 30 mills);
• all specific ownership taxes attributable to the Required Senior Debt Service Mill Levy;
• Facility Fees; and
• any other legally available amounts that the District determines, in its absolute discretion, to transfer to the Trustee for application as Pledged Revenue.

The 2020A Bonds are subject to redemption any time after December 01, 2030 at the option of the District.

At the time of the issuance of the Series 2020A Bonds, the District purchased from Assured Guaranty Municipal a reserve insurance policy that covers the entire term of the 2020A Bonds. This policy allows the District to not maintain a cash reserve fund as otherwise required per the Series 2020A Indenture of Trust Agreement.

Series 2020B General Obligation Bonds

On August 08, 2020, the District issued General Obligation Bonds, Series 2020B (“2020B Bonds”) in the amount of $15,405,000. The proceeds from the sale of the 2020B Bonds were used to refund the Series 2013B Bonds and pay the costs of issuing the 2020B Bonds. The 2020B Bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Unpaid interest on the 2020B Bonds compounds annually on each December 15. In the event any amounts due and owing on the 2020B Bonds remain outstanding on December 16, 2059, such amounts shall be deemed discharged and shall no longer be due and outstanding.

The Subordinate Bonds are secured by and payable from Subordinate Pledged Revenue, net of any costs of collection, which includes:

• all Subordinate Property Taxes (generated by the imposition of the Required Subordinate Mill Levy – which is equal to 30 mills less the Required Senior Debt Service Mill Levy);
•  all Subordinate Specific Ownership Taxes (attributable to the Required Subordinate Mill Levy);
• Subordinate Facility Fee revenue;
• any other legally available amounts that the District may designate towards payment of the Subordinate Bonds.

The Series 2020B Bonds are subject to redemption prior to maturity, at the option of the District on September 01, 2025, and on any date thereafter, upon payment of par, accrued interest, and a redemption premium equal to a percentage of the principal amount so redeemed.  

BOND DEBT - FLYING HORSE METRO DISTRICT NO 3

On July 30, 2019, Flying Horse Metro District No 3 (FHMD3) issued $17,800,000 in General Obligation Limited Tax Refunding Bonds, Series 2019A (“2019A Bonds”), the proceeds of which were used to refund the Series 2005A Bonds, fund the construction of additional public infrastructure and pay the costs of issuance of the 2019A Bonds. The 2019A Bonds were issued at the rate of 6.00% per annum and are payable annually on December 15, beginning December 15, 2019, from, and to the extent of, Senior Pledged Revenue available, if any, and mature on December 02, 2059. The 2019A Bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Unpaid interest on the 2019A Bonds compounds annually on each December 15. In the event any amounts due and owing on the 2019A Bonds remain outstanding on December 02, 2059, such amounts shall be deemed discharged and shall no longer be due and outstanding.

The 2019A Bonds are secured by and payable solely from Senior Pledged Revenue, net of any costs of collection, which is comprised of the following:

• all property tax revenues generated by the imposition of the Required Senior Debt Service Mill Levy (not to exceed 30 mills);
• all specific ownership taxes attributable to the Required Senior Debt Service Mill Levy; and
• any other legally available amounts that the District determines, in its absolute discretion, to transfer to the Trustee for application as Pledged Revenue.

The Series 2019A Bonds are subject to redemption prior to maturity, at the option of the District on September 01, 2024, and on any date thereafter, upon payment of par, accrued interest, and a redemption premium equal to a percentage of the principal amount so redeemed.