City of San Juan Bautista: $14,600,000 Interim Financing for USDA Wastewater Loan

The Deal:

‍Ridgeline Municipal Strategies, LLC served as a municipal advisor to the City of San Juan Bautista ("City") on a $14,600,000 Interim Financing for a United States Department of Agriculture - Rural Development ("USDA") Wastewater Loan, structured as Wastewater Revenue Bond Anticipation Notes (2023) and privately placed as a bank loan.

The Scope:

Ridgeline provided the following services to the City:

• Wastewater compliance project financing strategy development
• USDA due diligence and negotiation assistance
• Financing Request for Proposals development
• Financing proposals analysis
• Lender due diligence assistance
• Financing documents review
• Financing process coordination

The Outcome:

Ridgeline helped the City develop a comprehensive financing strategy for a wastewater compliance project to connect the City's wastewater system to a regional treatment plant via a 7.5-mile force main. The financing sources included several grants and a USDA loan. The USDA required the City to obtain an interim construction financing from a third party, which will be repaid with the USDA loan proceeds.

The City retained Ridgeline to provide municipal advisory services on the interim financing. The financing was structured as wastewater revenue bond anticipation notes and privately placed as a bank loan. The three-year loan term and draw-down structure allow the City ample time to complete the project and minimize interest costs for better utilization of taxpayer funds. The loan commitment included additional capacity to provide gap financing for grant-funded portions of the project.

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Ridgeline Municipal Strategies, LLC is an independent registered municipal advisory and financial consulting firm assisting cities and special districts with financial planning and financing for infrastructure, facilities, and equipment.

Contact Ridgeline to discuss your financing needs.

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