Once the Authority has conducted its internal credit assessment and determines that the financing is viable, it is time to make decisions regarding the structure for the transaction. CHEFA staff will review the financing options and can assist the institution in preparing and making credit enhancement and rating agency presentations, and selecting the financing alternative that best meets the particular needs of the client. CHEFA can assist the institution in almost every aspect of structuring a transaction including:
- Sizing the bond issue and related project funds.
- Selection of the interest rate options, fixed or variable.
- Evaluation of the cost versus benefit of bond insurance, letter of credit and unenhanced financing alternatives.
- Selection of a negotiated or competitive transaction, or a combination of both.
- Evaluation of refinancing opportunities.
- Assist in the selection of an investment banker and timing of the selection.
- Preparation of credit presentation packages and development of the Institution’s disclosure information for the bond offering prospectus.
- Evaluation of the project funding schedule to optimize the highest possible yield while complying with tax code requirements.
- Assist in the structuring of principal and interest payments that best meets the Institution’s cash flow needs.
