Founded in 1978, Independent Group Home Living Program Inc. (“IGHL”), a NY not-for-profit 501(c)(3) organization, provides residential and day habilitation services to mentally disabled persons, from technologically dependent children to seniors in the need of specialized nursing care. To support these residential and daytime programs, IGHL provides state-of-the-art clinical services in the areas of nursing, service coordination, social work, psychology, psychiatry, speech and physical therapy.
IGHL sought to (i) finance one new individualized residential alternative (IRA) facility and (ii) achieve economic savings through the refinancing of certain outstanding indebtedness.
Solution and Execution
GATES was engaged by IGHL 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 $11.590 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 IGHL. After deliberation with IGHL, two commercial institutions were chosen to participate in the financing.
Based on the locations of the projects, two issuers were used for the Bond transaction. The Town of Babylon Local Development Corporation issued $4.28 million of Bonds and the Suffolk County Economic Development Corporation issued $13.32 million of Bonds on behalf of IGHL. Final pricing on the Bonds yielded aggressive interest rates producing substantial NPV savings to IGHL.