Tax Exempt Bond Financing and Long-Term Credit Enhancement
First Capital acted as a financial consultant for several properties located in Florida which were originally financed with fixed rate tax-exempt debt. First Capital replaced the fixed rate tax exempt financing with low rate variable tax-exempt financing that, at the owner’s option, could be fixed or remain floating. First Capital also negotiated and obtained a cap on the interest rates limiting the risk of any future upward movement of interest rates. First Capital replaced the short-term credit enhancement of the bonds with long-term credit enhancement at a lower cost and without the risk of annual renewals. These activities enabled the projects to save interest payments and costs, and provided for options to add secondary financing at a later date.
