Type of Financing
Taxable Bond Issue

Financing Amount
$34,565,000

A church organization had worked years on its capital campaign and had completed the shell of its new worship space but lacked funds to complete construction.

Our Solution:
Coughlin designed, structured and sold taxable bonds whose proceeds provided construction and permanent financing on a fixed rate basis for up to 30 years with the ability to prepay their obligations from non-borrowed funds at any time. The sponsoring institution purchased a portion of the bond issue as “junior” bonds to serve as credit enhancement. The transaction also involved the creation of a master trust indenture so that the sponsoring institution may use the same structure and documents for their future financing needs and they have completed 10 such transactions with total proceeds of nearly $35,000,000.