The Launch Bond® is an early-stage financing developed by Launch Development Finance Advisors that represents a financing solution to bridge the gap between upfront infrastructure expenditures and revenue events. The Launch Bond® was developed solely to provide another financing tool for the development and homebuilding communities to assist in the financing of infrastructure and/or the return of capital.
Texas MUD Forward Funding Launch Bonds
A Texas MUD Forward Funding Launch Bond® is early-stage non-recourse, tax exempt Municipal Utility District (“MUD”) receivable financing and represents a financing solution to bridge the gap between infrastructure expenditures and MUD reimbursements.
Texas investors, developers, and builders: Discover the groundbreaking Texas MUD Forward Funding Launch Bond®
Since its mid-2023 creation by Launch Development Finance Advisors®, this non-recourse, tax-exempt bond has sparked unprecedented early stage project infrastructure financing. Watch the video below to learn how this innovative financial tool can revolutionize your project.
The Texas MUD Forward Funding Launch Bond®
The Texas MUD Forward Funding Launch Bond® is the original financing concept developed by Launch Development Finance Advisors® to bridge the fissure between the heavy upfront infrastructure spend and the receipt of future MUD reimbursements.
Attributes of The Texas Forward Funding Launch Bond® include:
Only applicable to Texas.
Tax Exempt Bond (Estimated Interest Rates from 5.5% to 7.5%).
Non-Recourse to the developer.
No Developer and/or corporate guarantees required.
May be structured as a capital appreciation or current pay bond.
Does not encumber the project lands.
Secured only by pledge of future MUD bond proceeds.
May be configured in multiple different bond structures to accommodate developer financing goals.
Accelerated payback of Launch Bond accrues to the benefit of the Developer.
Recent Launch Bond® Transactions
Maple Development / Aldeana, Azalea. Serenada
$40,900,000
Bond Type: Capital Appreciation Bond
Total Par Amount – $40.9MM
Reserve Fund – N/A
Net Proceeds – $37.5MM
Coupon – 7.25%
Yield – 7.50%
Maturity Date – 12/1/2040
Bold Fox Development / La Segarra
$19,401,334
Bond Type: Capital Appreciation Bond
Total Par Amount – $19.401MM
Reserve Fund – N/A
Net Proceeds – $18.020MM
Coupon – 7.375%
Yield – 7.375%
Maturity Date – 12/1/2039
Canyon Ranch / Canyon Ranch Austin
$29,960,000
Bond Type: Capital Appreciation Bond
Total Par Amount – $29.96MM
Reserve Fund – N/A
Net Proceeds – $28.3MM
Coupon Rate – 7.00%
Yield – N/A
Maturity Date – 12/1/2035
Randolph Texas / Lariat Phase 2
$29,400,000
Bond Type: Capital Appreciation Bond
Total Par Amount – $29.4MM
Reserve Fund – N/A
Net Proceeds – $28.1MM
Coupon Rate – 7.00%
Yield – N/A
Maturity Date – 12/15/2032
Masonwood / Provence
$44,120,000
Bond Type: Capital Appreciation Bond
Total Par Amount – $44.120MM
Reserve Fund – N/A
Net Proceeds – $39.120MM
Coupon Rate – 6.75%
Yield – 6.45%
Maturity Date – 12/1/2031
Starwood / Wildflower Ranch
$77,800,000
Bond Type: Special Revenue Capital Appreciation Bond
Total Par Amount – $77.8MM
Reserve Fund – N/A
Net Proceeds – $75.0MM
Coupon Rate – 6.180%
Yield – 6.180%
Maturity Date – 12/15/2033
Caldwell Cos / Chambers Creek
$53,100,000
Bond Type: Capital Appreciation Bond
Total Par Amount – $53.1MM
Reserve Fund – N/A
Net Proceeds – $51.2MM
Coupon Rate – 6.75%
Yield – 6.6404%
Maturity Date – 12/15/2032
Megatel / Venetian and Saint Tropez Developments
$45,000,000
Bond Type: Capital Appreciation Bond
Total Par Amount – $45.0MM
Reserve Fund –
Net Proceeds – $43.0MM
Coupon Rate – 6.25%
Yield – 6.25%
Maturity Date – 12/2033
Multiple Developers / River Ranch
$69,000,000
Bond Type: Capital Appreciation Bond
Total Par Amount – $69.0MM
Reserve Fund –
Net Proceeds – $66.0MM
Coupon Rate – 6.00%
Yield – 6.000%
Maturity Date – 12/01/2031
Ember Group/ The Grand Prairie
$62,700,000
Bond Type: Current Interest Bond
Total Par Amount – $62.7MM
Reserve Fund – $3.6MM
Net Proceeds – $55.8MM
Coupon Rate – 5.875%
Yield – 6.000%
Maturity Date – 12/15/2032
Starwood / multiple projects
$44,300,000
Bond Type: Current Interest Bond
Total Par Amount – $44.3MM
Reserve Fund – $2.3MM
Net Proceeds – $40MM
Coupon Rate – 5.375%
Yield – 5.375%
Maturity Date – 12/2031
Bold Fox Development / Attwater
$19,588,813
Bond Type: Capital Appreciation Bond
Total Par Amount – $19.6MM
Reserve Fund – –
Net Proceeds – $18.2MM
Coupon Rate – 6.25%
Yield – 6.16%
Maturity Date – 04/2030
Areté Collective / Thomas Ranch
$106,486,596
Bond Type: Capital Appreciation Bond
Total Par Amount – $106.487MM
Reserve Fund – $2.5MM
Net Proceeds – $103.0MM
Coupon Rate – 6.5%
Yield – 6.4%
Maturity Date – 12/1/2034
Hillwood Communities / Valencia
$46,985,000
Bond Type – Current Interest Bond
Total Par Amount – $46.985MM
Reserve Fund – $2.5MM
Capitalized Interest – $0.25MM
Net Proceeds – $42.3MM
Coupon Rate – 5.3%
Yield – 5.3%
Maturity Date – 12/1/2032
Caldwell Cos. / The Highlands
$48,180,000
Bond Type – Current Interest Bond
Total Par Amount – $48.18MM
Reserve Fund – $2.5MM
Capitalized Interest – $0.4MM
Net Proceeds – $43.2MM
Coupon Rate – 5.125%
Yield – 5.125%
Maturity Date – 12/15/2030
Starwood Land / Multiple Projects
$164,990,000
Bond Type – Current Interest Bond
Total Par Amount – $164.99MM
Reserve Fund – $9.07MM
Net Proceeds – $150.0MM
Coupon Rate – 5.50%
Yield – 5.50%
Maturity Date – 12/15/2028
Johnson Development Services / Candela
$40,790,000
Bond Type – Current Interest Bond
Total Par Amount – $40.8MM
Reserve Fund – $2.5MM
Net Proceeds – $36.2MM
Coupon Rate – 6.125%
Yield – 6.25%
Maturity Date – 12/15/2029
Randolph Texas / Lariat 1
$35,500,000
Bond Type – Capital Appreciation Bond
Total Par Amount – $35.5MM
Net Proceeds – $33.2MM
Coupon Rate – 7.5%
Yield – 7.76%
Maturity Date – 9/1/2029
Launch Development Finance Advisors®
Launch Development Financing Advisors® is a transactional based real estate consulting firm representing the private sector in matters of public finance. The mission of Launch Development Financing Advisors® is to assist our clients in the financing of infrastructure, reduction of the costs and the mitigation of risk, all with the goal of enhancing project profitability and returns.
For more information on Launch Development Financing Advisors® visit our website at www.launch-dfa.com.
For Further Information
For more information on how The Launch Bond® may assist with your project infrastructure financing, contact Carter Froelich
