Affordable Housing
Experienced providers of affordable financing solutions.

D.A. Davidson is a leader in tax-exempt bond financing for multi-family, student and senior housing projects. We have broad experience in debt securitization for low-income-housing and tax credit projects, including traditional debt products and products with derivative elements. Our clients include:

For-profit developers Tax credit investors Governmental authorities 501(c)(3) non-profit organizations

We help clients arrange various types of credit enhancement from highly rated entities, including commercial banks, government sponsored entities and monoline bond insurers. We specialize in single-asset transactions involving tax credits, private placement funding for bank qualified bonds for governmental authorities and non-profit corporations, as well as, pooled asset securitizations for affordable housing.

D.A. Davidson introduced an innovative program utilizing the 63-20 letter ruling to meet financing goals in resort mountain communities where traditional housing programs are not a viable solution. We have significant experience using various federal programs including:

Fannie Mae Freddie Mac (including their TEBS securitization program) HUD 221(a)(7) HUD 221(d)(3)

HUD 221(d)(4) HUD 223(f) HOPE V1 mixed financing transactions HUD 236 mortgage IRP decouplings

Alternative Energy
At the forefront of providing new and alternative energy financing.

With the rising cost of energy a major concern among municipalities nationwide, many governments are seeking a cost effective solution to their existing coal, natural gas and hydro electric supply systems. Our experienced bankers have developed viable financing structures to meet the need for these alternative energy systems. In May 2010, D.A. Davidson underwrote $7.7 million of bonds which were the first rated “Climate Smart,” commonly referred to as PACE bonds, in the nation. These bonds create a pool of funds to finance residential energy efficiency improvements. In June 2010, D.A. Davidson assisted Boulder County, Colorado with a $5.8 million financing to increase energy efficiency and reduce dependence on fossil fuel energy consumption for county buildings and facilities. In addition to existing alternative energy financing, we are also on the forefront of new fixed income structures related to clean energy and energy conservation.

D.A. Davidson is an underwriter of alternative energy tax credit bonds such as:

Clean Renewable Energy Bonds (CREBs)
Qualified Energy Conservation Bonds (QECBs)

Charter Schools
A recognized leader in charter school financing.

Charter schools have emerged over the past decade as a viable component of the public education system. At a time when parent demand for charter schools is growing, many of these schools face significant financial and operational challenges. Charter school officials may not be fully equipped to confront the issues of land acquisition and building a new facility much less the rigors of the securities markets. As a recognized leader in charter school financing, D.A. Davidson understands the legal and financial variables that allow charter schools to gain access to the tax-exempt capital market. Our breadth of charter school expertise is illustrated in high profiles projects including the Chicago Charter School Foundation’s inter-city network, Peak to Peak Charter School in Colorado and the Summit Academy School in Utah. From 2005 through December 2010, D.A. Davidson has completed transactions totaling over $767 million in charter school financing spanning across the nation (Source: Thomson Reuters/SDC June 2011). We have financed projects in states such as Colorado, Arizona, Illinois, Florida, New Mexico, Texas, Pennsylvania, and Utah.

Representative projects include*:

$49,475,000 Illinois Finance Authority Charter School Revenue and Refunding Bonds Chicago Charter School Foundation Series 2007 A&B	$39,595,000 Colorado Education and Cultural Facilities Auth Charter School Revenue and Improvement Revenue Bonds The Classical Academy Project Series 2003
$25,170,000 Spanish Fork City, Utah Charter School Revenue Bonds American Leadership Academy Series 2006	$23,300,000 Colorado Educational and Cultural Facilities Authority Charter School Revenue Refunding and Improvement Bonds Peak to Peak Charter School Project Series 2004
$22,305,000 Colorado Educational and Cultural Facilities Authority Charter School Revenue Refunding and Improvement Bonds Pinnacle Charter School, Inc. Project Series 2003	$20,765,000 Colorado Educational and cultural Facilities Authority Charter School Revenue Bonds Academy of Charter Schools Project Series 2004

D.A. Davidson is one of the pioneers of charter school finance and bankers Russell Caldwell and Eric Duran both specialize in charter school financing. Outside of his investment banking experience for charter schools, Caldwell has served on the board of directors of two charter schools, served on Colorado’s statewide charter association, and written numerous professional articles on issues related to charter school facility finance. Duran has been pivotal in notable transactions, such as: Cambridge Academy, Legacy Traditional, American Leadership Academy, Southgate Academy Charter Schools, and Summit Academy.

At D.A. Davidson we’re proud to be recognized for our exceptional service, superior ethics, and a stress on viable client relationships. Our belief is that the best way to assess your needs is to listen. A personal interaction is what sets us apart from our competitors. Responsibility to you is not just an aspect of our firm; it’s how we’ve done business for 75 years and counting.

*Project transactions listed above are merely a representative sampling of transactions and are not meant to be inclusive.

Financial Advisory Services
Helping issuers overcome financing challenges and navigate the market.

D.A. Davidson offers government clients financial advisory services for their financial needs. Issuers receive the guidance they need to negotiate the maze of financial, legal and regulatory issues posed by today’s market. Clients get advice on any type of project or method of sale, negotiated or public. Access to all major information services allows us to update clients on market trends and developments, and our tailored analytical services help issuers pinpoint the most opportune time to enter the market.

D.A. Davidson has completed the necessary registration as a Municipal Financial Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.

Healthcare Finance
Expert guidance for healthcare clients.


D.A. Davidson has been active in serving healthcare institutions for over three decades We pride ourselves on providing long‐term, comprehensive service to our clients that is not transactional in nature. Our team offers extensive knowledge of nationwide trends in the sector’s credit, structuring, and investor expectations, while maintaining local specialization. That blend has proven invaluable to our healthcare clients.

Our team is able to shed light on credit implications of structuring and other decisions early in the planning process, and to develop and implement successful rating strategies for our clients.

Our healthcare practice in our public finance department has been a cornerstone of D.A. Davidson’s business since 1968, and we continue to expand our capabilities and outreach. Furthermore, our dedicated healthcare specialists are supported by the broad analytical resources, key technology and operating systems, and extensive distribution capabilities of Davidson’s Fixed Income Capital Markets division. As a result, our clients enjoy exemplary service, optimal financing solutions, and an efficient cost of capital.

Our experience and specialties include:

Hospital Finance Debt Capacity Analysis Rating Analysis and Presentations MOB Finance Skilled Nursing Senior Living

Public Hospital Districts Critical Access Hospitals Private Placements Fixed and Variable Rate Taxable and Tax-Exempt Structured Products

Representative projects include*:

$24,865,000
Montana Facility Finance Authority
Community Medical Center
Health Care Facilities Revenue Bonds

Transaction Overview
D.A. Davidson & Co. is pleased to announce that it served as the sole managing underwriter to Community Medical Center in its issuance of $24,865,000 of tax-exempt revenue bonds. The transaction closed on December 29, 2010.
Located in Missoula, Montana, Community Medical Center is a 151-bed acute care hospital offering a wide range of services and specialties, including emergency, medical/surgical, adult, pediatric and neonatal intensive care, obstetrics, radiology, nuclear medicine and rehabilitation. It is the only provider obstetrical and newborn care in Missoula County. In addition, it is one of only three facilities in the state offering high-risk obstetrical care and neonatal intensive care. It is a referral center, receiving mothers and infants from throughout Western Montana and Idaho. Community Medical Center is the only hospital in western Montana that has a separate Pediatric Intensive Care unit.

D.A. Davidson & Co. served as Community Medical Center’s investment banker, providing guidance on credit for several years before the completion of the financing. Davidson assisted with rating presentations and developed a strategy with the rating agencies that resulted in two rating upgrades for Community Medical Center in the year prior to issuing bonds. Davidson also advocated for Community Medical Center to obtain credit enhancement for $19.015 million of its bonds from the Montana State Board of Investments. Through Davidson’s extensive sales and trading capabilities, Community Medical Center was able to obtain favorable bond pricing in a rising interest rate environment.

$57,115,000	$28,545,000
Montana Facility Finance Authority	Montana Facility Finance Authority
Kalispell Regional Medical Center	Bozeman Deaconess Health Services
Health Care Facilities Revenue Bonds	Health Facilities Revenue Bonds
$30,000,000	$8,835,000
Montana Facility Finance Authority	Lincoln County Hospital Authority #1
Health Care Facilities Revenue Bonds	Great Plains Medical Center
Glendive Medical Center	Hospital Revenue and Refunding Bonds
$5,010,000
$8,590,000
Whitman County Public Hospital District #3
Unlimited Tax GO Bonds

Higher Education
Over $2.6 billion in higher education financings.*

D.A. Davidson offers expertise with all aspects of higher education finance, including structuring, debt capacity analysis, credit analysis, credit enhancement and sales and distribution activity. We analyze historical student demand, the institution’s role in the market area, operating performance, endowment management, existing debt structure and strategic capital objectives. Through capital needs assessment, we advise higher education clients on amounts and types of debt to issue. From 2005 through December 2010, D.A. Davidson bankers have participated in more than 160 higher education financing deals totaling over $2.6 billion.

*Source: Thomson Reuters/SDC November 2011

Innovative Products
Unique solutions to hedge exposure, manage risk, reduce debt service costs.

D.A. Davidson has an affiliated company, Davidson Fixed Income Management, Inc. (DFIM), which provides assistance with innovative product solutions. These solutions can help manage interest rate exposure, create synthetic refundings or fixed-rate debt and manage interest rate risk.

Managing Interest Rate Exposure
Tax-exempt debt issuers have a number of tools available to manage their balance sheet risks. For example, interest rate swaps can be used to hedge interest rate exposure by creating synthetic fixed-rate debt or synthetic variable-rate debt. Typically, these instruments assist in matching liabilities and assets and managing interest rate exposure, either floating or fixed.

Synthetic Advance Refundings
A typically lower-interest alternative to conventional fixed-rate bonds, synthetic fixed-rate debt allows issuers to access the capital markets by issuing variable-rate demand bonds, while hedging this short-term interest rate exposure through the issuance of a floating to fixed-rate swap.

Synthetic Fixed-Rate Debt
A typically lower-interest alternative to conventional fixed-rate bonds, synthetic fixed-rate debt allows issuers to access the capital markets by issuing variable-rate demand bonds, while hedging this short-term interest rate exposure through the issuance of a floating to fixed-rate swap.

Forward Starting Swaps
As issuers seek ways to manage interest rate risk, our bankers have developed sophisticated solutions using forward starting swaps to lock in savings on refunding transactions while the issues are being brought to market.

Internet-Based Public Sales
Internet-Based Public Sales Enhanced distribution through online bond auctions.

D.A. Davidson has moved to the forefront in providing a cost effective platform for governments to sell bonds at public sale by merging e-commerce into the world of public finance. Our auction web site, DavidsonBondAuction.com moves a step beyond the typical method of completing public sale--it employs the latest technology that allows bonds to be sold using an auction system via the Internet. This website is utilized by clients of D.A. Davidson, other financial advisors and directly by governmental debt issuers.

With over $3 billion of successful auctions, DavidsonBondAuction.com serves as a valuable platform from which governments may receive bids for bond issues or structured investment products.

To find out how DavidsonBondAuction.com can be used for your government, contact Mark Kendle at mkendle@dadco.com.

Lease-Purchase Financing
Providing alternative financing options.

Lease-purchase agreements may take the form of both lease revenue bonds and certificates of participation and are increasingly an option for local governments and hospitals. D.A. Davidson has successfully completed lease financings for:

Counties Correctional facilities Municipalities Public safety (police and fire) equipment and facilities School districts

Sports facilities States Technology centers Universities

Resort Communities
Financing resort development and capital improvements.

D.A. Davidson has financed capital infrastructure improvements for local governments in Colorado resort communities, including Aspen, Beaver Creek, Vail, Copper Mountain, Snowmass, Steamboat Springs and Breckenridge. We are proud to have completed tax-exempt financing for the first public transportation gondola system in rural Telluride. In addition, we have completed resort-based financings in central Florida and Tahoe, California. The successes in these resort areas are due to a special understanding of financial and credit issues unique to tourist-oriented communities.

Rural Water
Financing clean water for communities large and small.

Rural water financing programs provide an efficient, cost-effective lending source for communities nationwide. The rural water financing programs that D.A. Davidson employs gives communities access to the tax-exempt bond market with a reduced issuance cost. These programs provide the benefits of a stand-alone bond issue, while reducing costs in a pooled structure. From January 2005 through December 2010, we have completed 275 financings of over $1.6 billion in 13 states

Sanitary & Improvement Districts
Helping to improve and expand public infrastructure.

D.A. Davidson employs a financing approach for Sanitary and Improvement Districts (SID) using construction fund warrants, a practice unique to Nebraska. Public improvements typically consist of streets, water, sewer, gas and electric service systems. As the district develops, special assessments and taxes from taxable valuation are collected and used to retire debt. Eventually, an adjoining municipality may annex the SID, providing the residents direct access to city services and increasing the city’s tax base and population.

School Districts
Helping school districts expand and improve.

Many school districts face unparalleled budgetary pressures in today’s financial environment. D.A. Davidson helps school districts navigate financial challenges. We provide investment banking and advisory services to school districts spanning:

Iowa Kansas Montana Nebraska

Oklahoma Oregon South Dakota Washington

Special Districts
Experts at financing community development.

Over the past ten years, the Special District Group at D.A. Davidson has underwritten more special district debt in Colorado than all of our competitors combined (Source: Thomson Reuters/SDC).  This extensive experience in the marketplace ensures that clients benefit from comprehensive solutions that meet their needs and provide the most efficient financing available. 

D.A. Davidson provides a comprehensive approach which includes:

A unique, long-term approach means that we are typically engaged in the early stages of the development process to assist in negotiating the terms of a district’s formation. We work with clients after formation to determine the optimal timing and structure of the district's debt offerings. Receiving banking advice and support prior to the issuance of debt is critical to ensure that special districts are ultimately able to issue debt in a timely and efficient manner.

Unmatched experience structuring over 300 special district bond transactions in the past ten years ensures that clients achieve maximized results.  The combination of our group’s underwriting leadership in conjunction with our firm’s sales and trading capability allows us to deliver on our commitments even in turbulent credit markets.

Special districts can be a useful tool for funding public infrastructure across a full range of development types including:

Residential Development Retail Development Commercial/Industrial Development. Mixed-Use Development Urban Renewal Projects Water Resource Development

Representative projects include*
Southglenn Metropolitan District which provided public infrastructure for The Streets at Southglenn redevelopment in Centennial, Colorado. Southglenn Mall was built in 1974 as a traditional, two-story enclosed mall with surrounding retail at the intersection of Arapahoe Road and University Blvd. In November of 2005, the Centennial Urban Renewal Authority approved the Southglenn Mall Redevelopment Plan that kicked off the project. D.A. Davidson underwrote $77 million in bonds in June of 2007 to finance significant public infrastructure based upon property tax and sales tax increment revenue. The ability of the District to issue bonds two years before the project’s Grand Opening in August of 2009, was critical to the success of the project.

Central Platte Valley Metropolitan District encompasses former rail yard property between Union Station and the Platte River just West of Lower Downtown Denver. This project has grown significantly over the past 10 years and now includes some of the most valuable residential and office property in Colorado. D.A. Davidson underwrote $60 million in bonds to fund much of the public infrastructure that serves this project.

Southlands Metropolitan District which serves the Southlands Mall in Aurora, Colorado. At 1.6 million square feet, Southlands is the largest retail development in Colorado and now serves as a prototype for a successful lifestyle retail center in the region. The $59 million in bonds underwritten by D.A. Davidson funded the majority of the public infrastructure that serves this project.

Learn more about our recent special district projects.
For more information on how D.A. Davidson’s Special District Group can help meet your financing needs, contact Sam Sharp, ssharp@dadco.com.

*Project transactions listed above are merely a representative sampling of transactions and are not meant to be inclusive

State & Local Governments
A proven partner for governments and municipalities.

D.A. Davidson works with municipalities to help execute their budgetary needs and operational plans. State and local government public finance plans include general obligation bonds, pension obligation bonds, tobacco securitization and cash flow notes. D.A. Davidson bankers have served as financial advisors or underwriters to numerous state and local governments, including:

The State of Colorado Kansas Development Finance Authority Montana Department of Natural Resources and Conservation City of Omaha, NE Boulder County, CO Arapahoe County, CO Cleveland County, OK City of Grand Junction, CO

King County, WA Lincoln County, NE City of Manhattan, KS The State of Montana Pierce County, WA City of Portland, OR Tulsa County, OK Omaha, NE

Tribal Finance
Innovative and flexible financing alternatives for tribal leaders.

D.A. Davidson provides private placement and financial advisory services to tribal governments that have a need to access capital market funding. We have a proven track record of delivering financings for “Essential Governmental Function” purposes such as debt consolidation, refinance, working capital, and new construction funding. The firm has also funded tribal enterprise financings at competitive rates in the taxable market. As the tribal finance market emerges, D.A Davidson will continue to provide innovative and flexible financing alternatives to tribal leaders.

Native American Finance Experience*:

Santee Sioux Nation
Santee Sioux Nation of the Santee Reservation of Nebraska
$18,660,000 Tribal Health Care Revenue Bonds
(Indian Health Service Joint Venture Construction Program Project)

Oglala Sioux Tribe
Pine Ridge Indian Reservation, South Dakota
$8,580,000 Essential Governmental Function & Refunding Revenue Bonds
$4,600,000 Essential Governmental Function Cash Management Notes (Taxable)
$6,015,000 Essential Governmental Function Refunding Revenue Bonds
$3,980,000 Essential Governmental Function Revenue Bonds

Lower Brule Sioux Tribe
Lower Brule Indian Reservation, South Dakota
$10,000,000 Refunding and Tribal Purpose Bonds (Tax Exempt)
$6,460,000 Refunding and Tribal Purpose Bonds (Taxable)
$5,500,000 Tribal Purpose Bond Anticipation Note (Taxable)
$6,505,000 Tribal Purpose Refunding Bonds (Taxable)

White Mountain Apache Tribe
Fort Apache Indian Reservation, Arizona
$7,790,000 Essential Governmental Function Revenue Bonds
$12,460,000 Revenue Bonds (Taxable)

The Cherokee Nation	The Chickasaw Nation
(Northeastern Oklahoma)	(South Central Oklahoma)
$2,925,000 Revenue Bonds	$3,015,000 Taxable Certificates of Participation
(Tribal Headquarters Complex)	(IHS - Regional Supply Service Center)
$8,310,000 Certificates of Participation
(Travel Plaza Projects)

*Project transactions listed above are merely a representative sampling of transactions and are not meant to be inclusive.

Utility Finance
Proven experts in financing critical utility systems.

The financing of basic infrastructure needs, such as utility systems, remains a core competency of the bankers at D.A. Davidson. From January 2005 through December 2010, our bankers have participated in managing, structuring or distributing over $4 billion of utility system financings. (Source: Thomson Reuters/SDC January 2011) Our major clients include the Arkansas River Power Authority, Omaha Public Power District, Iowa Public Power Agency and Missouri Public Utilities Commission.