New Launch Financing Innovation – Launch Bond™
Lariat (Williamson County, Texas)
Forward Funding MUD Capital Appreciation Bond
After multiple years of effort, Launch working with other professionals created a means by which Texas developers can accelerate the receipt of anticipated future Municipal Utility District (“MUD”) anticipated bond proceeds through the utilization of a non-recourse, tax exempt capital appreciation bond.
In this transaction, when the MUD had not yet issued any bonds, the developer was able to receive $33.2 million to reimburse them for a portion of the MUD eligible infrastructure constructed to date. If they had had to wait for the MUD to issue bonds, it would have taken 3 to 4 years for this amount of funding to be received. Through the issuance of the bond, the developer was able to accelerate the receipt of bond proceeds into their proforma and dramatically increase their IRR.
For more information on the background of the Launch Bond™ listen to Episode 30 of the Land to Lots™ Podcast.