Park West at Texas A&M University
NCCD’s Texas A&M Student Housing Project Expects Payment Default in July 2022, Working With Bondholders on Potential Refinancing
Wed 12/22/2021 13:20 PM
Relevant Document:
Notice (Dec. 21)
NCCD-College Station Properties LLC, the borrower on more than $340 million in bonds issued to finance the Park West student housing project at Texas A&M University, posted a notice to EMMA Tuesday, Dec. 21, disclosing that it expects to make a payment default in July 2022. The company, bondholders and the university “have been engaged in discussions about potential corrective action in the form of a refinancing of the Bonds,” the notice states.
According to the notice, the student housing project expects to make the $8.4 million interest payment due on Jan. 1, 2022, but doing so will require using funds in the bond fund that were earmarked for making the July 1, 2022 principal payment of $6.7 million. Therefore, the project does not expect that sufficient funds will be available (in the debt service reserve fund or otherwise) to make the July 1 debt service payment. The shortfall is expected to be “well in excess of” $5 million and will result in a payment default, the notice says (emphasis added).
Included in the notice is the below summary of current fund balances held under the bond indenture:
Notice (Dec. 21)
NCCD-College Station Properties LLC, the borrower on more than $340 million in bonds issued to finance the Park West student housing project at Texas A&M University, posted a notice to EMMA Tuesday, Dec. 21, disclosing that it expects to make a payment default in July 2022. The company, bondholders and the university “have been engaged in discussions about potential corrective action in the form of a refinancing of the Bonds,” the notice states.
According to the notice, the student housing project expects to make the $8.4 million interest payment due on Jan. 1, 2022, but doing so will require using funds in the bond fund that were earmarked for making the July 1, 2022 principal payment of $6.7 million. Therefore, the project does not expect that sufficient funds will be available (in the debt service reserve fund or otherwise) to make the July 1 debt service payment. The shortfall is expected to be “well in excess of” $5 million and will result in a payment default, the notice says (emphasis added).
Included in the notice is the below summary of current fund balances held under the bond indenture:
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