Conference

Private Placement Bond Program

Purpose:

The Private Placement Bond Program provides tax-exempt financing for capital equipment, construction, acquisition of real property, renovation or refinancing of existing debt. The use of standardized documents simplifies the bond issuance process and substantially reduces issuance expenses. This Program is open to all qualified borrowers under the Authority’s statute and is designed primarily for institutions who 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: $10,000 one-time

Escrow Agent Fee: one-time (not always required)

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

Advantages:

The reduced up front costs and time to complete the process will be the primary advantages to institutions. With one or two bond holders, any future approvals, waivers, amendments, etc. needed are easier to obtain.

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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