HEFA Lite

(Competitive Placement Bond Program)

Purpose:

The HEFA Lite Program offers tax-exempt bond issues for capital equipment, construction, renovation or refinancing of existing debt. The use of standardized documents and a competitive bid process simplifies the bond issuance process and substantially reduces issuance expenses. The Program is open to all qualified borrowers under the Authority's statute. The Program is designed primarily for institutions which are willing to absorb the interest expense associated with private placement in exchange for considerably lesser time commitment and lower issuance costs than are required in a public bond offering.

Who Can Participate?:

Any not-for-profit healthcare or educational institution qualified to borrow through the Authority.

Fees/Expenses:

Authority Fees: prevailing fee schedule (annual)

Authority Counsel Fees: $4,000 one-time

Bond Counsel Fees: $7,500 one-time

Financial Advisor Fees: $7,500 one-time

Trustee Fees: bid process (annual)

In addition, there may be related out of pocket expenses and institutional costs such as institution counsel fees, filing/recording fees, title insurance premiums, etc.

Size of Borrowing:

Minimum:

$250,000 for capital equipment

$1,000,000 for construction

Maximum:

none

(Borrowers of amounts in excess of $5,000,000 will likely save significant amounts by issuing bonds under the Authority’s public offering program.)

Advantages:

The reduced up front costs and time to complete the process will be the primary advantages to institutions.

Furthermore, there often will only be one bond holder to deal with and the competitive bidding process should assure that interest rates are competitive.

For an application or additional information, contact:

David C. Bliss, Executive Director

New Hampshire Health and Education Facilities Authority

P.O. Box 2110

Concord, NH 03302-2110

Phone: 603-224-0696

Fax: 603-224-3058

Web Hosting by Verizon.net