The Hyatt hotel, to be built on the former Denver Post block, is across the street from the $268 million Colorado Convention Center expansion.
The city is creating a non-profit group to own the hotel, and says its financing marks only the second publicly financed hotel transaction to receive bond insurance.
It is the first transaction to receive letters of interest from two bond insurers. AMBAC was the other bond insurer offering a letter of interest in insuring the transaction.
"Having two bond insurers pursuing our project means the cityis better positioned to get the good terms for the bond deal," says CherylCohen-Vader, Manager of Revenue and co-chair of the hotel committee.
Bond insurance will substantially lower the interest cost on the bonds.
XL is rated "AAA" by Moody's and "AAA" by Standard & Poor's and Fitch Inc. Last year XL insured a $90 million portion of DIA's bonds.
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