Economy & Finance

WRG Financial Advisory Services - NBOA & NAIS Member Schools

1. Financial Advisory Services Presentation to & Member Schools 2. Financial Advisory Team Experienced and Committed Financial Advisory Team Christopher Wienk…
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  • 1. Financial Advisory Services Presentation to & Member Schools
  • 2. Financial Advisory Team Experienced and Committed Financial Advisory Team Christopher Wienk Kevin Quinn Financial Modeling / Principal Advisor Competitive Solicitations Aileen Panitz William Bass Robert Doherty Research and Quantitative Analysis Capital Market Matters Communications Significant public, real estate and non-profit facilities finance experience  provided advisory services on over 250 debt and lease financings totaling over $10 billion  served over 50 different educational institutions ranging from major national universities to start- up independent schools  served non-profit and governmental entities in broad range of other industries including health care, economic development, housing, utilities and transportation  structured a broad range of bond financings deploying virtually every financing technique  strong relationships with all major financial institutions and credit enhancement providers in the United States  highly-effective process for competitively bidding and negotiating pricing of bond issues, letters of credit, derivatives and other financial products and instruments 1
  • 3. Services for Independent Schools We are an independent financial advisory firm specializing in project debt financing and related services for independent schools Our range of capabilities includes the following:  Debt Financing Support  Capital Analysis and Planning  Evaluation of Financing Options  Financial Modeling  Finance Plan Development  Financial Projections  Debt Structuring & Implementation  Debt Affordability Analysis  Competitive Solicitation of Debt  Credit and Credit Rating Assessment Financing and Derivative Products  Debt Policy Development  Negotiation of Interest Rates, Underwriting Fees and Costs of Issuance  Investment Counsel  Rating Agency/Credit Enhancement  Structured Investment of Debt Proceeds Presentations  Cash Management  Arbitrage Calculations & Reports  Reserve/Endowment Asset Allocation  NRMSIRs Reports/Annual Reports Services We work closely with each client to tailor a financing solution that meets its unique needs and have extensive experience with:  Private placements and public offerings  Interim and permanent financings  Bank-based financings (including Bank Qualified (BQ) and Non-Bank Qualified (NBQ) financings)  Capital markets-based financings (including rated and non-rated fixed rate bonds as well as letter of credit-supported Variable Rate Demand Bonds (VRDBs))  All forms of interest rate hedges and credit enhancement 2
  • 4. Recently Completed Educational Client Assignments Bryn Mawr School (Baltimore, MD) NBQ reissuance, credit spread reduction, swap modification Webb School of Knoxville (Knoxville, TN) Debt Policy Development Western Reserve Academy (Cleveland, OH) $20 million NBQ refunding issue (+ swap assumption) The Heights School (Potomac, MD) $15 million BQ refunding issue Hathaway Brown School (Cleveland, OH) $13 million BQ refunding issue (+ swap assumption) Indian Creek School (Annapolis, MD) $15 million BQ refunding issue (+ swap assumption) Maret School (Washington, D.C.) $18 million BQ refunding issue (+ swap amendments) The Wheeler School (Providence, RI) $4 million BQ refunding issue The Park School (Baltimore, MD) $11 million negotiated interest rate swap Stone Ridge School (Bethesda, MD) $11 million negotiated interest rate swap Hood College (Frederick, MD) $16 million negotiated interest rate swap Union Theological Seminary (New York, NY) $13 million refinancing SEED School of Maryland (Baltimore, MD) $20 million financing (+ negotiated swap) University School (Cleveland, OH) $16 million BQ refunding + $17 million new money issue Bryn Mawr School (Baltimore, MD) $9 million BQ ref/new money issue (+ negotiated swap) Fourth Presbyterian School (Potomac, MD) Bank loan refinancing St. Mary’s Ryken High School (Leonardtown, MD) $9 million BQ new money issue Grace Episcopal Day School (Kensington, MD) $5 million new money bank loan DeMatha Catholic High School (Hyattsville, MD) $19 million new money VRDB issue (+ negotiated swaps) Bishop McNamara High School (Forestville, MD) Analysis of swap alternatives Oakcrest School (McLean, VA) Analysis of financing alternatives Out-of-Door Academy (Sarasota, FL) $14 million negotiated interest rate swap 3 Thayer Academy (Boston, MA) Replacement liquidity facility for $30 million VRDB issue
  • 5. Select Independent School References Client Name Contact Information Type of Financing Amount Financed The Out-of-Door Academy David Mahler VRDBs with Interest Rate Swap $13,000,000 (Sarasota, FL) Headmaster (941) 349-3223 Our Lady of Good Counsel H.S. Art Raimo VRDBs and Non-rated Fixed Rate Bonds $51,700,000 (Olney, MD) President (240) 283-3209 University School David Wright Issue #1: Bank Qualified Bonds $15,845,000 (Cleveland, OH) Finance Director (7 Year “True” Fixed Rate) (216) 932-0400 Issue #2: Bank Qualified Bonds $17,000,000 (Variable Rate/Draw Down Structure with Interest Rate Swap) Thayer Academy Bill Stephenson VRDBs $30,000,000 (Boston, MA) Business Manager (Replacement Credit Facility) (781) 664-2519 DeMatha Catholic H.S. Anne Metz Two Series Issuance of VRDBs with $19,875,000 (Hyattsville, MD) Business Manager Interest Rate Swaps (240) 764-2216 Maret School Darwin Walker Bank Qualified Bonds $17,335,000 (Washington, DC) Business Manager (Variable Rate with Interest Rate Swaps) (202) 939-8821 Western Reserve Academy John Tortelli Non-Bank Qualified Bonds $19,600,000 (Cleveland, OH) Chief Financial Officer (Variable Rate with Interest Rate Swaps) (330) 650-9713 Hathaway Brown School Valerie Hughes Bank Qualified Bonds $13,315,000 (Cleveland, OH) Associate Head for Finance and (Variable Rate with Interest Rate Swaps) Administration (216) 320-8082 The Wheeler School Gary Esposito Bank Qualified Bonds $4,245,000 (Providence, RI) Business Manager (10 Year “True” Fixed Rate) 4 (401) 528-2173
  • 6. Range of Financial Advisory Services Available Strategic Planning  Review Financial Statements, Annual Budget, Financial Projections and New Project requirements  Work in tandem with Management, Legal Counsel and selected Financial Services Firms to assure smart, efficient financial planning  Help assure realism in assumptions underlying financial feasibility analysis and report  Develop financial model and identify and help assess financing options  Credit ratings/credit enhancement  Debt Structures  Fixed  Variable  Tax-exempt/Taxable  Creative/Innovative Financing Alternatives  Help develop/refine actionable Finance Plans  Interim financing  Permanent financing  Overall financing timetable  Participate on ongoing basis in planning and execution process for each financing  Review drafts, provide comments, identify key planning issues  Participate in meetings, hearings and review processes as requested  Focus on Project financing needs, debt affordability and financial ratios 5
  • 7. Range of Financial Advisory Services Available (cont’d) Credit Rating Management  Financial Ratio Analysis/Monitoring  Liaison to Analysts  Information Updating  Informal Meetings  Formal Transaction - Related Presentations Debt Issuance Coordination  Finance Plan  Develop/review with Staff, Board and other consultants  Advise on structure of financing  Sizing and timing  Term/amortization structure  Call provisions  Monitor and report on market conditions, trends, problems and opportunities  Help balance key financing, credit and policy considerations  Interest costs  Federal tax laws  Issuance cost  Debt capacity / affordability  Arbitrage opportunities and compliance  Credit ratings  Market conditions  Best interests of school 6
  • 8. Range of Financial Advisory Services Available (cont’d) Debt Issuance Coordination (cont’d)  Evaluate and help select Finance Team  Underwriter(s)  Letter of Credit Provider  Bond Trustee  Issuer  Help coordinate Finance Team activities  Assist in preparation of bond documents  Help execute financings  Negotiate interest rate, fees and related terms  Provide supporting quantitative analysis and reports to Management Ongoing Resource  Quantitative Analysis  Proactive Source of Information & Industry Developments  Cash Flow Analysis  Market Conditions  Financial Ratio Monitoring  Financial Innovations  Arbitrage Compliance  Federal Tax Laws  Monitor Outstanding Debt for  Trends in Tax-Exempt Bond Financing Refunding Opportunities  Rating Agency Perspectives 7
  • 9. Key Elements of our Solicitation Process Financing Solicitation Strategy  Open market financing solicitation targeting 25+/- pre-qualified direct lenders or investment banks  Robust solicitation materials including extensive Information Memorandum and RFP  Electronic dissemination of all RFP materials and access control to sensitive client information via password protected website  Active tracking of interest level of each prospect during solicitation process  “Actionable” responses required (Loan Committee approved Term Sheet or Commitment Letter) Solicitation Scope and Methodology  Alternative Proposals  All Financing Modalities (Tax-Exempt & Taxable)  Capital Markets Fixed Rate Bonds  Letter of Credit-Supported VRDBs  Direct Purchase (Bank Qualified and Non-Bank Qualified) Variable and Fixed Rate Bonds  Multiple Swap Solutions  Termination/Replacement  Assumption/Novation  “Blend & Extend” 8
  • 10. Key Elements of our Solicitation Process (cont’d) Aggressive Solicitation/Award Timetable  Solicitation Period: 30 days  Evaluation Period: Up to 10 days  Award: Usually within 2 weeks of proposal due date Our Commitment to RFP Respondents  Level playing field  “Best Price Wins” (absent objectionable terms)  No rebidding or price shopping 9
  • 11. Key Findings from Recent Bank Solicitations Increasing willingness among banks to:  offer direct purchase financings with fees competitive with those for traditional VRDBs,  assume long dated, out-of-the-money interest rate swaps and  provide “true” fixed rate financing (ie. no interest rate swap) for up to 10 years with amortization periods of up to 30 years Credit spreads for both LCs and direct purchase transactions have declined appreciably since late 2008, but remain considerably higher than 2004-2007 levels Open market solicitations with clear, fair and reasonable ground rules elicit multiple responses and more aggressive pricing than “one-off” negotiations Banks appreciate the opportunity, courtesy and fairness that comes with an efficiently and effectively managed solicitation process:  a new customer prospect  comprehensive disclosure materials enabling expedited evaluation and underwriting  assured enforcement of solicitation criteria 10
  • 12. Key Points Extensive national bond finance and project debt expertise and significant financing experience with all types of non-profit institutions Extensive experience serving independent schools in markets around the country Recent success helping a number of non-profit institutions secure replacement credit facilities and swap counterparties with economical transactions costs and outcomes Capable of quick, highly competent and affordable service Committed to providing excellent service and assuring optimal financial outcomes We help assure that you are making informed and timely decisions supported by in-depth quantitative analysis and thorough reports and briefings We are independent and work exclusively for you 11
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