Hamlin Pricing Services Adds Value to Your Bond Issue

Hamlin Capital Advisors Serving the Mission

MEETING YOUR FIDUCIARY DUTY WHEN ISSUING BONDS

Issuing bonds is one of the most important financial events that your organization will undertake, and millions of dollars are at stake over the life of the bond issue.

While underwriters serve an integral role in the bond sale process, they also have the difficult task of having to balance the interests of their borrower-clients to secure the lowest available interest rate, and their investor-clients who want the highest possible interest rate.

To manage this issue, knowledgeable long-term care providers are learning to seek professional help when selling tax-exempt bonds. It has long been a best practice for non-profit hospitals, universities, cities, counties and states to employ a financial advisor to represent their interests during a bond sale. A particularly important role of a financial advisor is to independently verify if the borrower achieved the most beneficial interest rate possible.

The long-term care industry has traditionally not had access to firms that provide these services.

Hamlin Capital Advisors combines its deep knowledge of the long-term care industry with access to various trading platforms to compare appropriate interest rates, and over 30 years of experience in the bond markets.

HELPING OUR CLIENTS ACHIEVE GREAT RESULTS

In 2014 and 2015, Hamlin Capital Advisors represented John Knox Village of Florida, one of the largest single-site CCRC’s in the country, and Orlando-based Presbyterian Retirement Communities, one of the largest CCRC systems in the country, as pricing advisor. Our role was to help formulate the planning, sale, pricing and distribution strategy, and provide input on how the transaction was structured, timed, distributed and marketed. With its access to a number of major sales and trading desks around the country, Hamlin was able to independently scrutinize the underwriter’s proposed interest rates. When appropriate, new structures and pricing strategies were recommended to the underwriters, providing for a more favorable interest rate.

In each case, Hamlin was able to add value through suggested improvements to the bond structure, resulting in material interest savings. Hamlin also independently verified  that the final interest rates were fair and reasonable to meet the fiduciary obligation of the borrower.

*Testimonials provided may not be representative of the experience of other clients. Such testimonials are no guarantee of future success or performance.