Long-Term Financing
Since its first bond issue in December 2003, VML/VACo Finance has financed over $750 million in capital projects and equipment for local governments. Our goal is to provide the lowest cost financing for your local government or authority, along with hands-on assistance to make this the easiest financing you’ve experienced.
VML/VACo Finance specializes in helping local governments access interest rates that are below those of typical municipal bonds. Most recently, we announced that we are assembling pools of Recovery Zone Economic Development Bonds and Build America Bonds for public facilities (see “News and Notices” for more information). These new programs, authorized under the American Reinvestment and Recovery Act, enable local governments to issue taxable bonds that receive an interest expense subsidy from the federal government of 35-45% for the life of the bonds – typically 20 to 30 years.
We also offer flexible financing structures that are unique to our program. Our popular Commonwealth Loan Program enables localities to draw down their loan proceeds over time as they fund construction costs, and then close on the long-term financing when they are ready. Using this approach, local governments can avoid taking on more debt than they need, before it is actually needed. You pay less in closing costs with our approach than with a typical bond issue and save up to 80% on interest costs over the construction period. Backed by a highly-rated Letter of Credit, the Commonwealth Loan Program achieves excellent pricing and interest savings over the life of the loan.
Finally, recent changes in federal law allow VML/VACo Finance and other conduit issuers to offer the benefits of Bank Qualified Financing on loans of up to $30 million. When you finance through VML/VACo Finance, we issue a Request for Proposals on your behalf at no cost to you. Then, you will be able to compare rate quotes and terms for 5-10 long-term financing offers from leading regional and national financial institutions as well as a publicly traded bond issue. Of course, there is no obligation until you find an option that is right for you.
VML/VACo Finance’s long-term financing programs offer:
- Interest rates fixed for the life of the loan;
- Ability to repay without penalty after the tenth year;
- Project financing for terms up to 20 or 30 years, subject to credit approval;
- No up-front bond insurance cost;
- The ability to share costs of issuance with other participants;
- The option to schedule a closing date that best suits your schedule;
- Regularly-generated arbitrage monitoring reports;
- An easy process in which we handle all the details.
For more information, or to submit an application, select the following links:
