Custom Capital Solutions.
Creative Ideas.
Objective Advice.

What to Consider About the Tax-Exempt Bond Sale Process

  • The typical bond underwriting agreement requires only a “best effort” to sell your bonds and does not include a guarantee that funds will be available to pay for the project.
  • If any of your bonds are left over after the sale process, your underwriter may increase your interest rate to entice buyers to purchase what remains—leading to higher financing costs for your organization.
  • Bond structures, terms and covenants are designed for the benefit of the bondholders, so they may trade bonds with each other. But do the covenants really meet your needs?
  • Most borrowers do not realize they can change how their bonds are structured just before the sale, nor do most know how or why they should. Even small changes can generate huge savings. Have you ever added up the amount of interest you pay on your home mortgage? Now imagine that for your entire bond issue.

At Hamlin Capital Advisors, we can help your nonprofit institution avoid these and other pitfalls.

To discuss your individual needs, please call us at 813-280-1000, or contact us.