Bay Apartment Communities completes bond refinancing and lowers borrowing costs.SAN JOSE, Calif.--(BUSINESS WIRE)--April 21, 1995--Bay Apartment Communities (NYSE NYSE See: New York Stock Exchange : BYA) said today it has refinanced $8.7 million in tax-exempt bond Tax-exempt bond A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax. tax-exempt bond See municipal bond. financing associated with its Crossbrook Apartments community which it acquired in October, 1994. The new 30-year bonds currently bear interest at an all-in floating interest rate of approximately 5.3 percent. The prior financing on the property carried an interest rate of 9.5 percent. Credit enhancement for the refinancing has been provided by the Federal National Mortgage Association (FNMA FNMA abbr. Federal National Mortgage Association Noun 1. FNMA - a federally chartered corporation that purchases mortgages Fannie Mae, Federal National Mortgage Association ). The bonds, issued by the City of Rohnert Park, California Rohnert Park is a city in Sonoma County, California, United States, located approximately 50 miles north of San Francisco. The population was 42,236 at the 2000 census. It is an early planned city modeled directly after Levittown, New York and Levittown, Pennsylvania. , where the community is located, carry a Standard & Poor's short term rating of A1+ and a long term rating of AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. . "This transaction exemplifies our strategy of using low-cost tax-exempt financing to reduce our cost of capital. We have lowered our borrowing costs significantly, extended the maturity of the financing and received improved credit enhancements," said Geoffrey L. Baker, chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Bay. "This closing," he continued, "is part of a series of transactions we are processing with FNMA involving a pool of more than $89 million in new and restructured tax-exempt financing. We expect to close the remainder of the pool this summer and we are anticipating achieving an all-in borrowing cost on a ten-year fixed rate basis on the entire pool of less than seven percent based on today's interest rates." Bay purchased Crossbrook, a 226-apartment home community, for $12,900,000 and expects to spend approximately $371,000 on rehabilitation of the property. Bay Apartment Communities is a fully integrated, multifamily real estate investment trust focused on the acquisition, development and management of high quality apartments in Northern California. The company owns and manages 23 apartment communities containing more than 5,100 apartment homes in the San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay , metropolitan Sacramento and Fresno, California. CONTACT: Bay Apartment Communities Gilbert M. Meyer or Geoffrey L. Baker, 408/983-1500 |
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