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Capital Note (CAN) Program

Purpose:

The Capital Note (CAN) Program offers tax-exempt short-term securities which not-for-profit institutions use to fund routine capital expenditures, renovations and construction projects.

Who Can Participate?

Any institution that is qualified to borrow from the Authority under RSA 195-D or 195-E is eligible to be a borrower under this Program.

Fees/Expenses:

Due to a pooled financing, fees and expenses will be substantially less than a standard bond issue.

Loan Amount:

For capital expenditures, an institution's maximum borrowing is equal to the institution's annual routine capital expenditures. If borrowing for renovations or a construction project there is no limit.

Requirements/Advantages:

To the extent that Note proceeds are not needed to fund routine capital expenditures, they can be invested in higher-yielding taxable securities that generate additional revenue.

Note issuance is significantly less complicated and less expensive than the standard bond issue.

*Greatly reduced disclosure requirements

*Simpler form documents

*Unsecured borrowing

*Expense is shared among pool participants

Many institutions can achieve a short-term rating without credit enhancement.

Capital Notes are expected to be issued as part of an annual pool each Spring. An institution should have a Standard + Poor's rating of SP-1 on its own credit or it must obtain a letter of credit which is rated SP-1. Each institution is only liable for its debt and not for the debt of any other institution in the pool.

Note Terms:

Notes are, typically, a one year maturity.

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

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