ORIX USA’s Infrastructure and Public Finance team served as receivables purchaser in a $24.2 million MUD receivables transaction for Escondido, a 419-acre residential development in Magnolia, Texas, within the Houston MSA. Developed by J. Alan Kent, Escondido is located within Montgomery County MUD No. 174 and includes 975 planned homes.
The transaction is backed by reimbursement rights associated with infrastructure costs incurred by the developer for roads, water and sewer improvements needed to support the community’s development. The investment provides growth capital to the developer while accelerating the monetization of completed infrastructure assets. The transaction also highlights ORIX USA’s ability to deliver structured finance solutions that support community development projects, create liquidity for developers, and facilitate residential growth in high demand markets.