Urban Resource Institute

Refinancing of Acquisition Loan

$8.6 Million Tax-Exempt Bond

ThinkForward served as Financial Advisor

CLIENT/PROJECT

Urban Resource Institute
Services for victims of domestic violence, the disabled, shelters, transportation, alcoholism, addiction, etc.
Refinancing of Existing Private Placement of Bonds

FINANCING

Direct Purchase of Bonds by a commercial bank
100% Debt Refinancing
3.32% 15-Year Fixed Rate

COLLABORATORS

TD Bank (bond purchaser)
Winston & Strawn (bond counsel)
Build NYC Resource Corporation (bond issuer)

Many nonprofits take advantage of lower interest rates available with tax-exempt bonds, which enables them to deploy more of their limited resources to their core mission of improving the lives of others. The Urban Resource Institute is a New York City-based social services agency that provides comprehensive, holistic, and supportive human services programs that empower individuals and families in the New York metropolitan area to change their lives for the better. The Institute offers hands-on programs for victims of domestic violence, the developmentally disabled, and people struggling with addiction and substance abuse, which are specifically tailored to meet the needs of the individual. The Institute has been recognized as one of the top domestic violence shelters for helping consumers obtain access to permanent housing.

In 2015, URI sought to refinance existing bonds, originally issued to finance some of its shelter facilities, to reduce debt service, but did not want to use any of its equity in the transaction. ThinkForward identified a lender that provided a tax-exempt loan to refinance the Institute’s existing bonds, as well as a taxable loan as a substitute for equity in order to finance various costs that were not eligible for tax-exempt financing. The bonds included a 15-year loan at a very low interest rate, which resulted in a significant reduction in the Institute’s debt service costs, without having to expend any equity on the transaction.

As Financial Advisor, ThinkForward managed the entire financing process, including procuring an ideal lender, managing the issuer application process and obtaining all necessary approvals, preparing financial analyses to determine the optimal structure, preparing the tax analysis, coordinating with all legal counsels, and closing on the financing. With ThinkForward’s guidance, the transaction was closed under budget and on schedule.

ThinkForward’s close relationship with the Build NYC Resource Corporation and its complex application and approval processes helped guide URI through the transaction and helped to ensure a quick, smooth closing process.

“ThinkForward helped us refinance and restructure our existing project debt to generate significant savings that we used to enhance our programming and helped us make a huge impact on lives in the community that our organization serves.”

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