In order to take advantage of historically low interest rates, the Seven Oaks CDD Board of Supervisors recently refinanced the bonds associated with the land south of the power line easement. The original bonds, which were issued in 2001, were issued to partially fund the construction of infrastructure for the original Seven Oaks CDD I. Those bonds were refinanced for the first time in 2011 and have now successfully been refinanced twice. Similar to refinancing a mortgage, CDD bonds typically can be refinanced (technical term is refunding) as long as the bond documents allow for it. The 2001 Bonds were eligible to be refunded 10 years after the original issuance. The original 2001 Bonds were issued at a coupon rate of 6.90% and the 2011 Refunding Bonds were issued at a rate of 5.208% for the residential units. That refunding resulted in a 18.8% net annual assessment savings for the residential units. Subsequently, the 2011 Refunding Bonds were also eligible to be refinanced starting in 2021. The 2021 Refunding Bonds were issued at a coupon rate of 2.3674% for the residential units, which resulted in a net annual assessment savings of 18.35% for the residential units. The maturity date of the original 2001 Bonds was not extended with either the 2011 refinancing or the most current refinancing on April 16th. The 2021 Refunding Bonds are scheduled to mature on May 1, 2033.
The 2021 Refunding Bonds are assessed to the following residential neighborhoods: Coventry, Springwood, Amberside, Brookforest, Pinecrest and The Laurels. The neighborhoods north of the power line easement are encumbered by the CDD’s 2016 Refunding Bonds and are eligible to be refinanced in 2026.