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The Bond Issuance Process

The length of time needed to complete a bond financing depends on the nature and timing, and the complexity of the transaction structure. The exact amount of time may vary, but is characteristically four to six months for first-time issuers for the transaction to close. A sample financing timeline is shown below.

Financing Team (for public offerings)

The institution is responsible for selection of the investment banker, which provides the direct access to the capital markets for your bond sale. Qualities the borrower should consider in the selection of an investment banking firm include:

  • Experience and depth of staff, and the level of available resources in the firm.
  • Complexity of the financing transaction.
  • The level of understanding regarding the borrower's needs.
  • Pricing for underwriting services.

A competitive bid process for the selection of an investment banker can be a useful tool to obtain information about structuring a bond issue, and to obtain the lowest possible cost for these services. CHEFA can facilitate a Request for Proposals ("RFP") and provide comparative data from other bond issues to enable the borrower to evaluate potential investment bankers and to make an informed decision.

CHEFA will be responsible for selecting bond counsel, special counsel and a financial advisor.  These firms are listed below.

 

BOND COUNSEL

  • Day Pitney, LLP
  • Harris Beach PLLC
  • Hawkins, Delafield & Wood LLP
  • Pullman & Comley, LLC
  • Robinson & Cole LLP
  • SPECIAL COUNSEL

  • Carmody & Torrance, LLP
  • McCarter & English, LLP
  • Shipman & Goodwin LLP
  • FINANCIAL ADVISOR

  • A.C. Advisory, Inc
  • Acacia Financial Group, Inc.
  • Fairmount Capital Advisors, Inc
  • Public Financial Management
  • For a private placement transaction, an investment banker is not needed because the issue is privately placed with a purchaser. A placement agent may be utilized in the same capacity as an underwriter.

    SAMPLE FINANCING TIMELINE