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Questions & Answers

  1. Is there a formal RFP or only the summary?

    This is the formal RFP. We want to be as flexible as possible in what type of financing option works for you and how you would like to structure the investment. Our biggest concerns are the overall rate and total amount of proceeds the sale of the obligations provides.

  2. Is the $5 million a hard minimum or can you accept lesser value?

    The minimum is $5 million. If we have to manage more than 7 investors it somewhat defeats the purpose of a private placement and would push us to a public offering.

  3. Will there be any rating for the bond?

    We are not proposing that these obligations be rated. The payment stream for this financing is tax revenue from the state of Vermont that goes directly to VHFA. As outlined in the RFP, the obligations are paid from the first $2,500,000 collected annually by the State of Vermont from Vermont State Property Transfer Tax. If the investor requires that the obligations be rated, then the costs and work required to obtain the rating will be included in our consideration of the offer and subject to negotiation.

  4. Who will be bond trustee?

    We are not proposing a bond trustee. If the investor requires a trustee or an alternative collateral agent, it would be given consideration in the pricing and negotiation of terms. The tax revenue for debt service comes in annually directly to VHFA and the debt service is paid out semi-annually to the investor as outlined in the RFP. There will be no collections of mortgage proceeds backing this financing; these funds are effectively grants to VHCB for eligible purposes.

  5. Since the bonds are “NOT general obligations of VHFA and do NOT constitute an obligation where the “full faith and credit” of VHFA, the Vermont Housing and Conservation Board or the State of Vermont is pledged to the Obligations”, who will sign the note?

    VHFA will sign the bonds/notes.

  6. When will internal 06/30/2017 year-end statement or a draft of the 06/30/2017 audit be available for review?

  7. Will the full anticipated $36 million in proceeds be disbursed on day of closing, or will the proceeds be disbursed over time? If over time, what is the time frame anticipated?

    VHFA initially assumed all the proceeds would be received once the agreement was signed. If there is some pricing advantage to having the sales price set but disbursed over time we would consider that if it increased the amount of end proceeds. VHFA/VHCB would be open to considering both as long as, in the case of drawdowns over time, the interest rate is fixed upfront and doesn't reset with each draw.