The Authority offers a broad range of effective financing options to eligible borrowers. These programs are the culmination and refinement of programs, which have been tried and tested in their appropriate markets.
- Direct Loan Program
- Equipment Revenue Note Program
- Trust Fund Loan Program
- Stand Alone Program
- Montana Capital Assistance Program (MCAP)
Through internal and external resources the Authority is capable of providing diverse services to borrowers from the planning of an issue through the issuance of bonds, to the maturity of the bonds.
The Authority staff is available to discuss various financing options, arrange the final financing, monitor compliance with bond covenants and operational performance by the borrower, facilitate the flow of information among the borrower, investors, rating agencies, insurers, trustee and other professional entities.
The Authority tailors its services to the needs of each borrower. Authority hires or assists borrower in hiring professionals to complete financings. Experienced personnel manage all aspects of the financing process, from investigating the most favorable borrowing options, to negotiating legal terms and conditions, to pricing and closing the issue.
Authority staff is especially helpful to the borrowers after the closing of the bonds. They can assist in monitoring the project costs including modifications to protects, answer questions regarding bond documents, funding requirements, facilitate amendments to bond documents, such as corporate reorganizations, substitutions of collateral, property releases and asset transfers.
The Authority is an independent, self-supporting public authority. Its operational expenses are funded through fees charged to the facilities using the Authority's financing programs. No public funds or tax monies are appropriated to the Authority.
Application Fee (Initial Planning Service Fee)
The application fee for each series of bonds will be calculated subject to the following schedule:
|Up to $ 5,000,000||30 basis points (bp) (.0030)|
|Up to $ 10,000,000||the > of 25 bp or $ 15,000|
|Up to $ 25,000,000||the > of 15 bp or $ 25,000|
|Up to $ 50,000,000||the > of 12.5 bp or $ 37,500|
|Up to $100,000,000||the > of 7.5 bp or $ 62,500|
|Over $100,000,000||the > of 6.5 bp or $ 75,000|
Minimum fee of $1,000
Annual Fee (Annual Planning Service Fee)
The Annual Fee for each series of bonds shall be due annually.
The following Annual Fee schedule shall be used in assessing all new fundings:
|Stand Alone Bond Issues||5 bp X the outstanding principal amount|
|Private Placement bond issues||5 bp X the outstanding principal amount|
|Trust Fund Loan Program||50 bp X the outstanding principal amount *|
* included in the interest rate on the loan
The maximum annual loan fee shall be $50,000 and the minimum loan fee shall be $100, whether for a single facility borrower, multi-facility borrower or a pool of borrowers.
The Authority may subsequently waive or reduce the annual planning service fee.
Direct Loan Program
Fees and expenses
- One-percent (1%) origination fee.
- Borrower is responsible for all associated loan expenses.