The Head Injury Association (“HIA”), a NY not-for-profit 501(c)(3) organization, was founded on Long Island by a group of parents who sought services for their children who suffered from a TBI. As a result of the lack of services for survivors in New York State, families were often forced to separate from their loved ones during a time of crisis. This hardship drove a group of dedicated parents to create the Head Injury Association on December 6, 1988.
When the crisis of head injury suddenly occurs, each family’s reaction and means of coping will be different. HIA recognizes the devastating impact of TBI and provides a network of services specifically designed to meet the initial and lifetime needs of survivors and caregivers facing this crisis.
HIA sought to finance (i) the purchase, renovation construction and equipping of a new Day Habilitation and Administrative Building and (ii) the renovation of three (3) residential condominiums.
Solution and Execution
GATES was engaged by HIA to structure a Bond transaction that allowed them to both fund the capital project and refund outstanding indebtedness. To that end, GATES reviewed IGHL’s debt structure and found approximately $3.3 million of Bonds eligible for refinancing that could produce substantial cash flow savings. GATES identified, solicited and procured extremely competitive bond purchase proposals from a large host of commercial banks that understood the funding streams of organizations such as HIA. After deliberation with HIA, one commercial institution was chosen to participate in the financing.
The refunding and revenue bonds were issued by the Suffolk County Economic Development Corporation on behalf of HIA. Final pricing on the Bonds yielded aggressive interest rates producing substantial NPV savings to HIA.