HEFA has been providing active capital financing assistance to New Hampshire non-profit education and healthcare institutions since 1969. Interest cost savings from Authority financing are reflected in lower costs to the consumer through the rates, fees and tuition established by the borrowing institutions.
The Authority staff assists healthcare and educational institutions in analyzing financing alternatives and in structuring revenue bond issues to meet their needs. Funds for each project are obtained through the sale of revenue bonds of the Authority. Bonds are sold to institutional lenders in “direct placement” transactions and to individual and institutional investors in a “public offering”. Bond sale proceeds are loaned by the Authority to the borrowing institution.
The credit supporting any Authority bond issue is the credit of the borrowing institution involved. The availability of financing depends in each case upon the credit-worthiness of those institutions. The Authority’s bonds are not a debt, liability, or “moral” obligation of the State of New Hampshire. Interest paid on Authority bonds is exempt from federal income taxation, resulting in materially lower financing costs to the borrowing institution.