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The markets are currently presenting nonprofits with unique opportunities to refinance, restructure, and consolidate existing debt to address cash flow issues during the pandemic.
Budgetary constraints are the new norm, so we look for options whenever and wherever to secure operational savings. For many of ThinkForward’s clients, this has meant revisiting balance sheets to determine whether an existing mortgage, loan, or bond should be refinanced or renegotiated.
Consider a case study in bond refinancing for the Guttmacher Institute, ultimately, saving our client $3M over the next 15 years.
Several financial drivers were behind the decision to refinance the Institute’s existing bond debt, which was originally issued in 2007 for leasehold improvements to the 125 Maiden Lane office condominium. Increasing liquidity, avoiding tedious annual bond compliance, and taking advantage of lower interest rates on $8,550,000 of debt were at the top of the list of our client’s concerns. In 2020, securing significant operational savings was paramount, considering the pandemic’s impact on the Institute’s budget.
We also considered our client’s need for a simple, straightforward, pared-down financing process. This meant expediting the approval and closing processes and keeping closing costs to a bare minimum.
For a two-year period, ThinkForward monitored the markets for the Institute and analyzed financing opportunities until an optimal solution presented itself. The choice to move forward with taxable financing resulted in significant savings—above and beyond any tax-exempt alternatives. The Institute also avoided annual compliance and reposting requirements.
We ultimately structured the refinancing to save the Institute $3M over 15 years. We reduced interest rates from 5.75% to 2.05%, fixed for term of the loan.
Furthermore, our client avoided substantial compliance and reporting requirements associated with tax-exempt financing. And, because we worked with a lender with no mortgage requirement, the Institute avoided sizable recording taxes by securing a negative pledge on the condominium. The Institute saved 2.80%.
Finally, we were able to deliver 100% debt financing, including closing costs.
In addition to serving as financial advisor, ThinkForward assisted the Institute with procuring SBA Paycheck Protection Program funding. This was not part of ThinkForward’s original scope of work. However, we were directed to increase cashflow, which meant thinking holistically about how to leverage all potential resources and relationships.
The Guttmacher Institute, Inc. is a prominent research and policy organization that advances sexual and reproductive health and rights. Based in NYC and Washington, DC, the Institute’s staff of 120 conducts programming, publishes, and advocates on both national and international stages.
The markets are currently presenting nonprofits with unique opportunities to refinance, restructure, and consolidate existing debt to address cash flow issues during the pandemic.
Budgetary constraints are the new norm, so we look for options whenever and wherever to secure operational savings. For many of ThinkForward’s clients, this has meant revisiting balance sheets to determine whether an existing mortgage, loan, or bond should be refinanced or renegotiated.
Consider a case study in bond refinancing for the Guttmacher Institute, ultimately, saving our client $3M over the next 15 years.
Several financial drivers were behind the decision to refinance the Institute’s existing bond debt, which was originally issued in 2007 for leasehold improvements to the 125 Maiden Lane office condominium. Increasing liquidity, avoiding tedious annual bond compliance, and taking advantage of lower interest rates on $8,550,000 of debt were at the top of the list of our client’s concerns. In 2020, securing significant operational savings was paramount, considering the pandemic’s impact on the Institute’s budget.
We also considered our client’s need for a simple, straightforward, pared-down financing process. This meant expediting the approval and closing processes and keeping closing costs to a bare minimum.
For a two-year period, ThinkForward monitored the markets for the Institute and analyzed financing opportunities until an optimal solution presented itself. The choice to move forward with taxable financing resulted in significant savings—above and beyond any tax-exempt alternatives. The Institute also avoided annual compliance and reposting requirements.
We ultimately structured the refinancing to save the Institute $3M over 15 years. We reduced interest rates from 5.75% to 2.05%, fixed for term of the loan.
Furthermore, our client avoided substantial compliance and reporting requirements associated with tax-exempt financing. And, because we worked with a lender with no mortgage requirement, the Institute avoided sizable recording taxes by securing a negative pledge on the condominium. The Institute saved 2.80%.
Finally, we were able to deliver 100% debt financing, including closing costs.
In addition to serving as financial advisor, ThinkForward assisted the Institute with procuring SBA Paycheck Protection Program funding. This was not part of ThinkForward’s original scope of work. However, we were directed to increase cashflow, which meant thinking holistically about how to leverage all potential resources and relationships.
The Guttmacher Institute, Inc. is a prominent research and policy organization that advances sexual and reproductive health and rights. Based in NYC and Washington, DC, the Institute’s staff of 120 conducts programming, publishes, and advocates on both national and international stages.
NYC agencies are encouraging investments in IndustrialBusiness Zones (IBZ).This is good news for real estate developers and building owners hoping to attract manufacturing and light industrial tenants through redevelopment of their properties. Financial assistance through the NYCIndustrial Development Agency (NYCIDA) can make a sizeable contribution to most capital stacks.
For many organizations, delaying a project means delaying future success. Tax credits and economic incentives can help fund the next step forward in any mission-driven organization’s growth and evolution. Considering the life line that these programs can represent, let’s take a few moments to understand what incentives are and how to tap into the potential for your company.
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