1. Bond Sizing and Structuring

We specialize in sizing and structuring complex new money and refunding bond issues for all types of general obligation and revenue bond financings, including issues with fixed rate, variable rate, capital appreciation and “hybrid” bonds. These issues may include any number of projects, one or more debt service reserve funds, capitalized interest, bond insurance, costs of issuance, and any other financing requirements. Included with each bond sizing and structuring are the standard interest rate computations, including NIC, TIC, All-In TIC and the arbitrage yield.

2. Complex Cash Flow Modeling

Our staff is highly experienced in modeling complex cash flow scenarios that incorporate an issuer’s revenue and expense estimates to determine the optimal bond amortization structure. This is particularly valuable in instances where projected revenues are minimal during the early years of a project’s life, requiring the use of capitalized interest and/or capital appreciation bonds to determine the optimal first year of principal amortization.

We also provide our clients with cash flow models for bond defeasances and escrow restructurings, tax-exempt and taxable multi-family collateralized mortgage revenue bonds, and Critical Tracking® studies that integrate traditional municipal finance sizing and structuring techniques with other analytical methodologies.

3. Independent Review and Analysis

Many of our clients retain us for an independent review and analysis of their complex cash flow projections, including the preparation of verification reports in connection with tax-exempt and taxable current and advance refundings. This service is extremely valuable to our clients when they have a very complicated set of scenarios that need to be completed quickly, particularly when they are experiencing a work overload or a shortage of in-house personnel.

4. Debt Administration

In addition to proposed new money and refunding issues, an issuer may have numerous series of bonds outstanding that need to be aggregated and reported externally. We are frequently retained by our clients to provide them with accurate and detailed schedules of an issuer’s outstanding debt on a project-by-project basis and by fiscal year as a check on the accuracy of the work done in-house.

5. Document Preparation and Review

Our experienced personnel are available to help write and review the documents that are essential to every bond financing. These documents include the preliminary and final official statement, the notice of sale and bid form (for competitive sales), the bond resolution and trust agreement, investment contracts, escrow deposit agreements, financial feasibility studies, rating agency presentations, and interest rate swap confirmations. Our staff is also experienced in preparing debt affordability studies and “fair value” reports in connection with the valuation of outstanding debt. Additionally, we are available to assist issuers and their counsel in the preparation of proposals for financial advisory and bond underwriting services, and evaluating the responses received to these proposals.

6. Evaluation of Bids and Proposals

We are highly experienced in confirming the accuracy of bids received at competitive sales as well as evaluating the accuracy and completeness of financing plans submitted in responses to requests for proposals.

7. Refunding Verification Services

Since 1999 we have prepared numerous independent verification reports in connection with the mathematical accuracy of the cash flow projections for current and advance refundings throughout the United States. Our reports include the independent verification of all aspects of a refunding, including, but not limited to, (a) the debt service to maturity and to call of the debt being refunded, (b) the sufficiency of the income from the escrowed securities, together with any cash, to pay the escrow requirements, (c) the accuracy of all “SLGS” rates used, (d) the yield on the escrow, (e) the arbitrage yield on the refunding issue, (f) the gross and present value savings achieved by the refunding, and (g) the weighted average maturity of the refunded and refunding bonds. Each of our reports includes a formal written opinion together with detailed supporting schedules.

Critical Tracking® is a registered service mark of Stanley P. Stone & Associates, Inc.