$43 million bond restructure provides client with stable debt platform
Our non-profit client, which is long-established and a national destination because of its beautiful Colorado setting, operates programs for children, adults and families in the Rocky Mountains. The client had $43 million in outstanding variable rate demand bonds related to facilities construction. After the stock market melt-down of 2008, the client needed to restructure the bonds to be owned directly by a bank to avoid new market risks, which we assisted with as bond counsel. A few years later, however, the bank wanted major changes to the deal in exchange for extending the period during which it would continue to own the bonds. We were able to draft all the amendments and work the tax challenges to retrofit the new bank requirements into the existing deal documents. The bank extended its commitment to own the bonds which provided a stable platform for our client’s debt structure.