Services

Refinancing/Restructuring Debt

Northland Securities has extensive experience in the structuring and sale of both taxable and tax-exempt refunding bond issues. The firm's experience includes all types of advance and current refundings sold through both competitive and negotiated sale. We continually monitor the credit markets and our clients' existing debt issues to make sure that they are prepared to take advantage of interest cost savings when interest rates decline. Or if they have a situation requiring the restructuring of existing debt, we can work with them on seeking a solution for the best timing and payment needs.

Northland recognizes that timing and flexibility are two of the most critical components impacting the ability to achieve optimal savings, especially in a volatile market. In our role as underwriter or as financial advisor to issuers with refunding potential, we can bring refundings to the market quickly and effectively. This advantage allows our clients to time their refundings based on a "market driven," rather than "meeting driven," decision process. Our process for conducting refinancings typically includes the following steps:

1. Review and analyze client debt and identify which issues make the most economic sense for an issuer to refinance. We provide timely, ongoing communication with our clients relating to changes in the market that affect the savings potential.
2. Prepare for the issuance process internally, in advance of reaching an optimal market for savings, so that everything is "ready to go" when the time is right.
3. Advise the client on the array of options that will have an effect on the refinancing, such as issue size and bank-qualification, issue structure, level and structure of savings and method of sale to achieve the best results.
4. When everything is in place and ready to price, evaluate interest rates from a variety of perspectives and keep the issuer informed of whether or not an optimal savings target can be achieved.

Successful completion of the refinancing includes not only delivering satisfying results, but also following through after the sale to ensure that the new debt and payment structure "post refunding" is clear and understandable for the issuer staff over the life of the issue.