Municipal Markets

The BB&T Capital Markets Municipal Markets Group provides comprehensive capital structure planning and execution for a wide variety of healthcare, governmental, educational and nonprofit entities as well as corporate clients.  Our targeted practice ensures that each client has absolute access to seasoned professionals with the experience necessary to navigate the toughest economic environments in order to generate favorable results, while providing guidance and support.  With a robust distribution platform that reaches the full spectrum of investors, BB&T is able to deliver real-time market intelligence and superior execution for our clients.

Our team is armed with the broadest array of financial tools in the sector allowing us to provide a variety of services to our clientele, including:

  • Comprehensive financial advisory services including long-term capital planning, rating agency and credit enhancement strategies, financial policy development and financial modeling
  • Public and private bond underwriting including tax-exempt and taxable financing
  • Bank and private placement financing
  • Interest rate risk management (derivatives and swaps) and advisory services
  • Investment services for bond and loan proceeds


The result: A relationship approach that is focused on you.We leverage years of industry expertise and our broad array of services to execute successful debt issuances and provide you with a feeling of certainty and peace of mind.

 

We have produced more than 500 successful financings totaling $18.7 billion for healthcare, governmental, educational and non-profit institutions since the onset of the financial crisis in 2008

  • Georgia Charter Educational Foundation, Inc.

    On June 5, 2014, BB&T Capital Markets closed a $12,485,000 Series 2014A/B tax-exempt and taxable fixed rate bond transaction through the Development Authority of the City of Senoia. The transaction financed a charter school in Senoia for the Georgia Charter Educational Foundation, Inc. The primary purpose of the Series 2014 Bonds was to finance the acquisition of the 57,871-square-feet of improvements as well as equipping and furnishing the K-8 classrooms at the charter school. Bond proceeds also provided funds for a debt service reserve fund, a capitalized interest fund, and a working capital fund.

    Read More
  • Silver Creek St. Augustine

    On May 29, 2014, BB&T Capital Markets closed a nonrated $28,615,000 tax-exempt fixed rate financing and $1,000,000 taxable fixed rate financing for Zerga Development, LLC, and Zerga Management, LLC, a for-profit developer and manager of traditional multifamily housing and hospitality projects. The primary purpose of the financing was to provide funds for the construction of Silver Creek St. Augustine, an assisted living/memory care facility to be located in St. Augustine, Fla. BB&T Capital Markets, through its expertise with non-rated senior living credits and familiarity with healthcare and housing bonds, was able to utilize a form of housing bonds to provide the construction financing for Silver Creek St. Augustine. Through a combination of tax-exempt and taxable bonds, local grants and economic support, as well as defined deferral and subordination mechanics of the management and development fees, BB&T was successfully able to market and place the bond to nine institutional investors along with a strong retail distribution. BB&T Capital Markets was able to leverage its industry leading distribution capabilities and established relationships with institutional buyers to broaden Zerga’s geographic offering and continue their planned growth initiatives.

    Read More
  • Universal Academy

    On March 27, 2014, BB&T Capital Markets closed a $29,440,000 Series 2014A/B tax exempt and taxable fixed rate bond transaction for Universal Academy (Universal), a charter school with locations in Coppell and Irving, Texas. The primary purpose of the Series 2014A/B bond issue was to finance the cost of the acquisition, improvement, construction, renovation, and equipping of educational facilities for Universal. In addition, bond proceeds provided funds for the refinancing of existing debt, as well as the financing of a debt service reserve fund and approximately 12 months of capitalized interest.

    Read More
  • Wesleyan Senior Living

    Wesleyan Senior Living has a 117-year history of serving seniors in northeastern Ohio, including Cleveland and its western suburbs. WSL is the sole member of Wesleyan Senior Living Obligated Group, which includes Wesleyan Village and Wesleyan Meadows, Wesleyan Senior Living Foundation and Wesleyan Services Corporation. Collectively, WSL Obligated Group has approximately 223 independent living, 115 assisted living, and 154 skilled nursing units and serves more than 725 seniors throughout it operation, providing a range of senior-living and related services at its Wesleyan Village and Wesleyan Meadows campuses and in the broader community. Financing Process and Structure: BB&T has had a multiyear relationship with WSL, and has served as a resource to advise on a variety of initiatives including operating and financial performance improvement activities, strategic planning and board education, along with continued monitoring of WSL’s existing debt (and LOC ank relationship). With interest rate declines continuing through 2012-early 2013 and an upcoming LOC expiration on the Series 2004 VRDBs, BB&T worked with WSL to identify bank and bond refinancing alternatives for the Series 2004 Bonds as well as the outstanding construction and property acquisition loans. Bank financing was identified as the preferred alternative and BB&T assisted WSL with further exploration of bank financing options, focused on a targeted group of banks active in Ohio and providing senior living financing. Ultimately, BB&T worked with WSL to secure a commitment from Huntington Bank for the full refinancing request. Terms of the financing, incorporating a combination of tax-exempt and taxable debt, were attractive and included floating rate and synthetic fixed rate options, an 8-year put and 25-year amortization – WSL ultimately opted for a synthetic fixed rate through the put date and locked in a blended “all-in” cost of financing of 3.95 percent. BB&T also assisted WSL in coordinating the termination of an existing interest rate swap associated with the Series 2004 Bonds and entrance into new swaps with Huntington Bank to implement the synthetic fixed rate financing. Successful completion of the financing in June 2013 was an important achievement for WSL, enabling it to solidify its long-term capital structure (and financial position), with a new committed bank partner, at what proved to be historically low interest rates. It also validated the merits of the long-standing relationship between WSL and BB&T, which enabled WSL to move quickly to take advantage of favorable interest rates and successfully achieve its refinancing goal.

    Read More
  • Chandler Hall

    On April 19, 2013, BB&T Capital Markets closed a $21,075,000 Bank Financing for Chandler Hall Health Services, Inc. (Chandler Hall), a nonprofit Quaker-sponsored continuing care retirement community and health services organization in Newtown, Pa. Proceeds of the financing were used to refinance Chandler Hall’s outstanding fixed rate Series 1999 Bonds. The refinancing allowed Chandler Hall to significantly reduce its interest expense, generating expected net present value savings of approximately $3 million, or 12.81 percent of the refunded Series 1999 Bonds. Spurred by continuing declines in interest rates and a current optional call date on its Series 1999 Bonds, Chandler Hall engaged BB&T in May 2012 to pursue the refinancing of its outstanding Series 1999 Bonds. Following its engagement, BB&T identified and presented Chandler Hall with several refinancing alternatives, which included bond financing, bank financing along with a potential combination of the two options. Based on the anticipated availability and attractiveness of bank financing, BB&T coordinated a bank solicitation process that included 20 regional and national commercial banks. The solicitation elicited strong interest from multiple banks and ultimately two proposals meriting the most serious consideration. BB&T assisted Chandler Hall in the evaluation of these proposals along with a comparison to a fixed rate bond option. Ultimately, Chandler Hall opted to pursue the refinancing using bank debt and to work with Fulton Bank, whose proposal was the most attractive, based on “all-in” cost of financing, loan put date, along with loan covenants and terms, Chandler Hall secured a fixed rate of 3.40 percent with a 10-year put provision and a final maturity (and amortization) of 16 years (matching the existing maturity on the 1999 bonds), allowing Chandler Hall to realize significant annual debt service savings while assuming a comfortable level of interest rate and loan put risk. These savings, and their favorable impact on operating profitability, will further enhance Chandler Hall’s financial position and its ability to continue to deliver a broad continuum of services to a large group of constituents along with supporting future organizational growth.

    Read More
  • Laurel Lake Retirement Community

    On December 30, 2013, BB&T Capital Markets closed a $50.2 million acquisition financing for Laurel Lake Retirement Community, Inc. The financing included a combination of direct bank financing (taxable and tax-exempt) and tax-exempt bond financing, consisting of $35.9 million of senior taxable bank debt, $9.6 million of senior tax-exempt bank debt, $2 million of tax-exempt subordinate fixed rate bonds and $2.7 million of tax-exempt subordinate adjustable rate bonds and blended “all-in” cost of financing of 5.42 percent. Proceeds of the financing were used to fund the acquisition of Laurel Lake by the Laurel Lake Retirement Community Foundation, Inc.

    Read More
  • Nueva Esperanza, Inc.

    On December 20, 2013, BB&T Capital Markets closed a $32 million tax-exempt fixed rate bond transaction for Nueva Esperanza, Inc. (Esperanza). Esperanza provides support to the Hispanic community nationally through three primary areas of charitable activities; education and employment services, community economic development, and national nonprofit capacity-building. Local education initiatives include Esperanza Academy Charter School (Esperanza Academy), a charter school located in Philadelphia, Pa., as well as other educational institutions. The primary purpose of the Series 2013 Bonds is to 1) fund renovations and improvements, including the expansion and interior build-out of a middle school, construction of a shared community space, a gymnasium, an auditorium for performing arts and parking facilities; and 2) refinance existing loans, including a New Market Tax Credit (NMTC) Loan. In addition, bond proceeds provide funds for a debt service reserve fund and approximately 23 months of capitalized interest. Esperanza was also awarded a Redevelopment Assistance Capital Program Grant and a grant from the city of Philadelphia. The financing presented several challenges which BB&T Capital Markets addressed. First, the existing financing structure included a NMTC Loan component resulting in complex legal issues regarding the defeasance that ultimately needed to be resolved before the expansion financing could occur. Second, the financing needed to be completed in time to allow Esperanza Academy to continue its growth and open in fall 2014. Third, Esperanza and BB&T Capital Markets needed to navigate a challenging credit environment and rising interest rate market while articulating the complex security package of the proposed credit. BB&T Capital Markets defined a flexible financing structure and process in addition to an intricate security structure that enabled strong collateral and cash flow coverage. Market acceptance was primarily due to Nueva Esperanza’s well-qualified management team, its diverse revenue sources within the security package, and Esperanza Academy's nationally recognized academic performance. Ultimately, BB&T Capital Markets was successful in leveraging its developed sales and trading platform as well as its established relationships with charter school specific investors. These focused efforts, as well as BB&T Capital Markets’ industry leading distribution capabilities and Nueva Esperanza, Inc.’s, unique credit profile resulted in a simplified financing structure that included $32 million in tax-exempt fixed rate bonds with a final maturity of 2043. Additionally, BB&T Capital Markets closed the financing within the school’s desired timeframe, allowing the new facility to open as scheduled.

    Read More
  • Brazos Presbyterian Homes

    On December 4, 2013, BB&T Capital Markets closed a $92.5 million debt issuance for Brazos Presbyterian Homes (“Brazos”) consisting of (i) $67,500,000 of Series 2013B fixed rate bonds that were rated “BB+” and (ii) a $25,000,000 bank loan (collectively the “Series 2013 Bonds”). Proceeds of the Series 2013 Bonds will be used to fund a major expansion and redevelopment at one of Brazos’ campuses. The financing structure consists of two series of tax-exempt debt: a short-term bank loan and long-term fixed rate bonds. The shortterm bank loan, which will be repaid from initial entrance fees, was placed directly with BB&T Bank. The selection of BB&T Bank occurred after a bank loan proposal process (which was supervised by an independent financial advisor) was completed that included nine different providers. BB&T Bank was selected as its proposal provided Brazos with the lowest cost of borrowing and most attractive borrowing terms and conditions. In addition to soliciting the short-term bank loan, BB&T Capital Markets assisted Brazos in successfully securing a “BB+” credit rating (stable outlook) from Fitch Ratings. Fitch typically does not provide initial ratings at this level to providers undergoing a $90+ million expansion; however, due to Brazos’ strong financial profile including good occupancy and strong liquidity combined with BB&T’s leadership and positioning of the qualitative aspects, Fitch elected to assign the rating. As a result of the bank participation, credit rating and marketing effort, the fixed rate bonds were well received by the marketplace as there was significant retail demand supplemented by 15 different institutional investors placing orders resulting in a true interest cost of 6.81 percent for the Series 2013 Bonds. Most importantly, maximum annual debt service is more than $350,000 lower than the estimate used in the feasibility study thereby providing Brazos additional cushion in its financial projections.

    Read More
  • Hodges University, Inc.

    On November 14, 2013, BB&T Capital Markets closed a $28,890,000 tax-exempt fixed rate bond issuance for Hodges University, Inc. ("Hodges"). The primary purpose of the Series 2013 Bonds was for the acquisition of an existing building that Hodges previously leased, located in Naples, Fl., refunding of Hodges' outstanding Educational Facilities Revenue Bonds, funding of a debt service reserve fund for the Series 2013 bonds, and payment of the expenses incurred in connection with the bond issuance. The financing presented several challenges which BB&T Capital Markets addressed. First and foremost, Hodges is a small, non-traditional university whose unique credit profile was unfamiliar to the public capital markets. BB&T guided the University and effectively articulated its credit characteristics to the investment community. Second, BB&T Capital Markets needed to navigate a challenging credit environment and rising interest rate market. Third, there were real estate issues associated with the property being acquired. BB&T Capital Markets defined a flexible financing structure and process in addition to developing and articulating the University’s true credit strengths. Additional mitigating factors included Hodges’ depth and breadth of leadership, its salubrious collateral and cash flow coverage, as well as its evident market demand in a niche market as evidenced by its very high matriculation rate. Ultimately, BB&T Capital Markets was successful in leveraging its developed sales and trading platform as well as its established relationships with the higher education investment community. These focused efforts, as well as BB&T Capital Markets’ industry leading distribution capabilities and Hodges' unique credit profile resulted in an effective financing structure that included $28,890,000 tax-exempt fixed rate bonds with a final maturity of 2043 and a lower debt service compared to prior lease payments.

    Read More
  • Renaissance Charter School, Inc.

    On November 1, 2013, BB&T Capital Markets closed a $73,040,000 Series 2013A (tax-exempt) and $7,485,000 Series 2013B (taxable) fixed rate bond transaction through the Florida Development Finance Corporation. The transaction financed a group of five Florida charter schools located in Jacksonville, Port St. Lucie, Orlando and West Palm Beach for Renaissance Charter Schools. The primary purpose of the Series 2013 Bonds was to finance or refinance the costs of acquiring, constructing and equipping charter school facilities, which opened in August 2013. The charter school facilities range from approximately 61,000 to 105,000-square-feet, each with an enrollment capacity of up to 1,145 students in grades K-8. Bond proceeds also provided funds for a debt service reserve fund and approximately 7 months of capitalized interest. The Financing presented several challenges that BB&T Capital Markets was able to address. First, uncertainty in financial markets due to a potential government shutdown and federal debt limits provided an uneasy backdrop for the bond markets. Second, the charter school bond market is still relatively nascent. These challenges were addressed by BB&T through multiple discussions with investors and a site visit to the schools. The successful issuance of the Series 2013A&B bonds enabled Renaissance to continue its focus on growth and academic achievement in order to meet the needs of its current and prospective students in Florida.

    Read More
  • The Gardens at Spring Shadows

    BB&T Capital markets is pleased to announce the closing of a $23,570,000 fixed rate bond issue for The Gardens at Spring Shadows (The Gardens). The average yield of the tax-exempt bonds was 5.94 percent with a final maturity of 35 years.The proceeds were used by a non-profit to acquire an occupied independent living community on a tax-exempt basis from a for-profit operator. BB&T Capital Markets tailored a financing solution using tax-exempt bonds that allowed Willow Winds, Inc., to acquire The Gardens, a for-profit entity. To accomplish this, BB&T Capital Markets worked with Willow Winds, Inc. to ensure The Gardens met the requirements of a qualified residential rental project as identified in Section 142(d) of the Internal Revenue Code. To qualify under Section 142(d), at least 20 percent of the dwelling units in the community must be occupied by residents of low or moderate income, which is defined as having income that does not exceed 50 percent of the median gross income for the area. By meeting this requirement, Willow Winds, Inc., could use tax-exempt bonds to finance the acquisition. Additionally, BB&T Capital Markets' expertise allowed Willow Winds, Inc., to navigate a rigorous municipal issuer process and obtain an investment grade rating of “A-” with Standard & Poor's using the affordable housing criteria. To keep out-of-pocket costs to a minimum while maintaining the lowest cost of capital possible, two series of bonds were issued: (i) tax-exempt bond issue of $21,785,000 with yields ranging from 4.97 percent to 6.21 percent and (ii) a taxable issue with a yield of 7.00 percent. Market reception for the bond issue was positive as the bonds were oersubscribed and sold to both retail and institutional investors.

    Read More
  • Rocky Mountain Classical Academy

    On October 17, 2013, BB&T Capital Markets closed a $28,050,000 Series 2013 fixed rate bond transaction for Rocky Mountain Classical Academy, a charter school located in Colorado Springs, Colorado. The primary purpose of the Series 2013 Bonds was to construct a new facility, an 89,800-square-foot, 47-classroom facility for the charter school, acquire a 12.7-acre parcel of land for the new facility, refinance an existing loan, and reimburse the school for recent project expenditures. In addition, bond proceeds also provided funds for a debt service reserve fund and approximately 12 months of capitalized interest. The Financing presented several challenges that BB&T Capital Markets was able to address. First, the financing needed to be completed in time to allow the facility to open in Fall 2014. Second, the school needed to navigate a challenging credit environment and address the key aspects of its effective management transition, including the appointment of a dynamic Chief Administrative Officer, Ms. Christianna Fogler. Third, the School’s project was further challenged by a rising interest rate environment and rising construction costs. BB&T worked with the contractor and District/Authorizer on a phased approach for the project construction to allow the facility to open in Fall 2014. The final two challenges were addressed by BB&T with multiple discussions with investors, including direct conversation with the District/Authorizer detailing the historical relationship with the School and the defined plan to include the School in the growth of the district. Additional mitigating factors included the tremendous growth and demand in the school’s primary market area, the School’s comparatively strong and improving academic success, the engagement of a well-respected construction team, and the overwhelming support and assistance of the District/Authorizer.

    Read More
  • Wesleyan Senior Living

    On June 10, 2013, BB&T Capital Markets closed a $33.484,000 bank financing for Wesleyan Senior Living (WSL), a multi site senior living and services provider based in Elyria, Ohio. The financing was comprised of: 1) $29.9 million tax-exempt direct bank loan (issued through the Lorain County Port Authority) and 2 $3.6 million taxable bank term loan. Proceeds of the financing were used to refinance WSL's outstanding Series 2004 LOC-backed variable rate demand bonds (VRDBs), along with two outstanding construction and property acquisition loans. Financing proceeds also funded a portion of swap termination payment associated with the Series 2004 Bonds. Completion of the financing marked the successful conclusion of a multi-year effort to replace WSL's LOC-backed VRDBs with more attractive bank financing. BB&T has had a multi-year relationship with WSL and has served as a resource to advise on a variety of initiatives including operating and financial performance improvement activities, strategic planning and board education, along with continued monitoring of WSL's existing debt (and LOC bank relationship). With interest rate declines continuing through 2012-early 2013 and an upcoming LOC expiration on the Series 2004 VRDBs, BB&T worked with WSL to identify bank and bond refinancing alternatives for the Series 2004 Bonds as well as the outstanding construction and property acquisition loans. Bank financing was identified as the preferred alternative, and BB&T assisted WSL with further exploration of bank financing options, focused on a targeted group of banks active in Ohio and providing senior living financing. Ultimately, BB&T worked with WSL to secure a commitment from Huntington Bank for teh full refinancing request. Terms of the financing, incorporating a combination of tax-exempt and taxable debt, were attractive and included floating rate and synthetic fixed rate options, an eight year put and 25-year amortization - WSL ultimately opted for a synthetic fixed rate through the put date and locked in a blended "all-in" cost of financing of 3.95 percent. BB&T also assisted WSL in coordinating the termination of an existing interest rate swap associated with the Series 2004 Bonds and entrance into new swaps with Huntington Bank to implement the synthetic fixed rate financing. Siccessful completion of the financing in June 2013 was an important achievement for WSL, enabling it to solidify its long-term capital structure (and financial position), with a new committed bank partner, at what proved to be historically low interest rates. It also validated the merits of a long-standing relationship between WSL and BB&T, which enabled WSL to move quickly to take advantage of favorable interest rates and successfully achieve its refinancing goals.

    Read More
  • Bay Haven Charter Academy

    On April 25, 2013, BB&T Capital Markets closed a $19,800,000 Series 2013A ‘BBB-‘ Rated Tax-Exempt Fixed Rate Bond Issue and $465,000 Series 2013B ‘BBB-‘ Rated Taxable Fixed Rate Bond Issue (collectively, the “Series 2013 Bonds”) for Bay Haven Charter Academy, Inc. Proceeds of the Series 2013 Bonds will be used to fund the acquisition of a 24-acre parcel of land and the construction costs for a two-story, 85,000-square-foot middle and high school facility, located in Lynn Haven, Fla. Tax-exempt bond proceeds will fund all project costs as well as a debt service reserve fund and approximately 24-months of capitalized interest. Taxable proceeds will fund costs of issuance in excess of the 2 percent limitation. BB&T Capital Markets defined and executed a financing structure and process, which involved negotiating a revised security and covenant package with the existing bondholders, acting as liaison to the rating agency and soliciting the bond issue to new institutional investors. Although not involved in the 2010 bond issue, BB&T Capital Markets replaced the previous underwriter and was successful in obtaining the consents needed for the additional debt issuance. BB&T Capital Markets also was able to expedite the financing process by securing a bridge loan from its parent company. These focused efforts, as well as BB&T Capital Markets’ industry leading distribution capabilities and ability to bring new buyers for the debt placement, as well as Bay Haven’s strong credit profile, resulted in a financing structure that included $19,800,000 tax-exempt fixed rate bonds and $465,000 taxable fixed rate bonds. The Series 2013 issue is rated ‘BBB-‘ with a stable outlook by Standard & Poor’s. The Series 2013A fixed rate bonds were issued with a final maturity of 2048 with yields ranging from 4.84 percent to 5.15 percent. The Series 2013B taxable bonds had an interest rate of 5.90 percent with a 2022 maturity. The financing was well-received by the bond market with more than 10 institutions placing orders.

    Read More
  • Co-Manager - Medley Capital
William E. HardySenior Managing DirectorHead of Debt Capital Markets804-649-3952email Download My vCardView Bio
Stephen R. ComaManaging Director Director of Municipal Markets704-954-1595email Download My vCardView Bio