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.
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:
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.
