Capital Facilities Lease Services
Debt Repayment Analysis
L. J. Hart & Company can provide several debt repayment plans based upon current market conditions, tax collection rates, assessed valuation growth assumptions, etc. The analysis services of L. J. Hart & Company helps the issuer anticipate future cash flow obstacles or take advantage of certain opportunities. By partnering with us, it becomes easier for local decision makers to select a plan that best meets their goals and enhances the chances for voter approval when necessary.
Refunding Analysis
Providing our client issuers with the best possible redemption provisions is a speciality of L. J. Hart & Company. With the Company’s philosophy of structuring financings with short call features, or the ability to pay off debt early, opportunities to refinance existing debt and realize significant interest savings may be available.
Many of our issuer clients have taken advantage of the short call features to refund higher interest certificates to lower interest rates. Not only does this reduce future interest expense, but it also provides greater flexibility for future facility needs.
Guaranteed Performance Contracts
Missouri statutes provide additional flexibility to enter into guaranteed performance contracts with energy service companies to make energy and safety related improvements to existing facilities. Guaranteed performance contracts can be funded through a lease financing with the understanding that the reduced energy costs will meet the principal and interest payments.
Credit Enhancement
Credit enhancement is a method whereby an entity attempts to improve its credit worthiness. With credit enhancement, the lender is provided with reassurance that the borrower will honor its obligation through insurance, additional collateral, or a third party guarantee.
L. J. Hart & Company completes most of the application and can assist in the data gathering process. The Company has considerable experience in working with all rating agencies as well as the firms that provide municipal bond insurance to local governments. Having the benefit of this experience is useful in expediting the process, receiving competitive pricing of the insurance fee quotes, as well as the achievement of professional respect for the quality and completeness of the presentation.
