Equipment Revenue Note Program
The Equipment Revenue Note Program provides cost-effective financing for the acquisition and installation of equipment. Equipment Revenue notes are privately placed with investors who have expressed an interest in purchasing tax-exempt securities. The interest rate and certain structural aspects are negotiated with the purchaser. The program has been designed to facilitate an efficient borrowing vehicle for future equipment purchases through the use of a Master Lease Agreement.
Process
The Equipment Revenue Note Program is designed to offer both an easy and efficient method of financing and refinancing equipment. Notify the Authority of your interest in the program and the Authority will "shop" the deal to potential investors to determine interest.
Program Structure
- Minimal time investment
- Fixed, tax-exempt interest rates
- Standardized documents
- $500,000 minimum and no maximum loan size
- No reserve fund requirement
- No need for capitalized interest
- Security generally consists of a lien on financed equipment
Cost Benefits
- Low interest rates
- Minimal financing costs
- Annual secondary market disclosure information generally not required
- Arbitrage rebate calculation generally not required
Flexibility
- Loans are tailored to meet borrower's current and future capital equipment financing needs
- Interest rates and terms reflect both the historical and future financial and operating performance of the borrower
Other Advantages
- Processing time is approximately seven to ten weeks, but must include time for Authority Board approval. Annual secondary market disclosure information is not required. Arbitrage rebate calculation is also not generally required
