In December 2004, the City of Pearl, Mississippi issued three series of bonds and loaned the proceeds to Bloomfield Equities, LLC for the purpose of financing the construction of a minor league baseball stadium, construction of a Bass Pro facility, and other out parcel development. The bonds were secured by multiple sources of revenue which expired over different periods of time. In the event the revenues were insufficient to cover the payments, a debt service reserve fund was established with any draws on the reserve fund replenished by a related entity of Bloomfield Equities, LLC until certain provisions had been met.
Crews acquired the 2004B bonds in the open market and waived the optional call provision. Crews was able to work with the City and Bloomfield Equities, LLC to refinance and restructure the existing debt and provide over $2.6 million in cash flow savings to help with certain expiring revenue streams. Our firm acted as placement agent and placed the taxable bonds as 12 year, fixed rate, on a non-rated basis at a True Interest Cost of 5.50%, a reduction of 3% from the original 2004B interest rate.
Crews worked hard to serve our client in extraordinary ways by: