Family Residences and Essential Enterprises, Inc. (“FREE”), a NY not-for-profit 501(c)(3) organization, was founded in April of 1977 in response to the need for community residential alternatives to the institutionalization of mentally challenged individuals. FREE provides services to more than 2,000 people throughout Nassau and Suffolk Counties on Long Island, NY and currently has approximately 850 full time and 665 part-time employees.
The professionals of GATES Capital Corporation had underwritten or privately placed all of FREE’s outstanding $20,000,000 tax exempt bond indebtedness in Nassau and Suffolk Counties on Long Island, NY.
Solution and Execution
As part of its ongoing support of FREE’s debt structure and capital expansion strategies, GATES identified the economic benefits that could be achieved through the refunding of these bonds as well as a number of small conventional mortgages. We also implemented a strategy to maximize these savings by incorporating a discrete amount of new project financing in the corpus of the combined bond issue. The par amount of the refunding and new money bonds totaled $21,245,000, split between the two issuers—Nassau County Local Economic Assistance Corporation and Suffolk County Economic Development Corporation. These bonds refinanced multiple community residences, the administration building, day habilitation facilities, the Article 28 (and Article 16) clinic, and the agency’s Saddle Rock Ranch, which provides therapeutic riding lessons and equine care for developmentally disabled adults.