Our public finance group provides financing solutions for many types of clients across the country. In addition to our general work for municipal clients, we specialize in a number of practices in which we have significant expertise.
Our areas of focus include the following:
Public Finance Specialties
We specialize in a number of practices in which we have significant expertise.
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
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 for reducing their energy footprint. 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
A recognized leader in charter school financing.
Charter schools have emerged as a viable component of the public education system. Demand for charter schools is growing and 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 below.
Source: D.A. Davidson Offering documents on file (as of 12-31-12).
||$1.3 billion financed
At D.A. Davidson our belief is that the best way to assess your needs is to listen. Responsibility to you is not just an aspect of our firm; it’s how we’ve done business for 75 years and counting.
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.
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 regional 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:
Representative projects 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
Montana Facility Finance Authority
Community Medical Center
Health Care Facilities Revenue Bonds
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 of 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. Concurrently, Davidson acted as Placement Agent in a private placement refunding of all of Community Medical Center's outstanding debt to realize a present value savings. Davidson also advocated for Community Medical Center to obtain credit enhancement for $19.015 million of its construction 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.
Montana Facility Finance Authority
Bozeman Deaconess Health Services
Health Care Facilities Revenue Bonds
D.A. Davidson & Co. is pleased to announce that it served as the sole managing underwriter to Bozeman Deaconess Health Services in its issuance of $20,700,000 of tax-exempt revenue bonds. The transaction closed on September 28, 2011.
Located in Bozeman, Montana, Bozeman Deaconess Health Services (BDHS) owns and operates Bozeman Deaconess Hospital and a 4-building medical office complex. The corporation also includes Hillcrest Senior Living, a retirement community with 115 independent living units and 43 assisted living units. Bozeman Deaconess Hospital is a Level III trauma center with 86 beds, serving southwest Montana, including Gallatin, Madison, and Park Counties for over 100 years. The hospital offers a broad array of medical, surgical, obstetrical, and intensive care services, and has been recognized by the national healthcare organization Cleverly + Associates with a Five-Star Award for Community Value four years in a row.
D.A. Davidson & Co. served as Bozeman Deaconess Health Services' investment banker for 20 years, providing annual guidance on credit and debt capacity for several years before the completion of the financing. Davidson assisted with the rating presentations and pro forma debt ration analysis. Through Davidson's broad retail and institutional distribution system, Bozeman Deaconess Health Services was able to obtain an efficient cost of capital.
|Montana Facility Finance Authority
||Lincoln County Hospital Authority #1
|Kalispell Regional Medical Center
||Great Plains Medical Center
|Health Care Facilities Revenue Bonds
||Health Revenue and Refunding Bonds
|Montana Facility Finance Authority
|Glendive Medical Center
||Whitman County Public Hospital District #3
|Health Care Facilities Revenue Bonds
||Unlimited Tax GO Bonds
*Project transactions listed above are merely a representative sampling of transactions and are not meant to be comprehensive.
Over $1.08 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 2012, D.A. Davidson bankers have participated in more than 108 higher education financing deals totaling over $1.08 billion.
*Source: Thomson Reuters/SDC January 2012
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
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 email@example.com
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:
- Correctional facilities
- Public safety (police and fire) equipment and facilities
- School districts
- Sports facilities
- Technology centers
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.
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 2012, we have completed 407 financings of over $2.2 billion in 17 states.
(Source: Thomson Reuters/SDC January 2012)
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.
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
- South Dakota
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:
Representative projects include*
Southglenn Metropolitan District
- Residential Development
- Retail Development
- Commercial/Industrial Development.
- Mixed-Use Development
- Urban Renewal Projects
- Water Resource Development
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, firstname.lastname@example.org
*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
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
$6,085,000 Essential Governmental Function Revenue & Refunding 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)
*Project transactions listed above are merely a representative sampling of transactions and are not meant to be inclusive.
|The Cherokee Nation
||The Chickasaw Nation
||(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)
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 2012, our bankers have participated in managing, structuring or distributing over
$6.9 billion of utility system financings. (Source: Thomson Reuters/SDC January 2013) Our major clients include the Arkansas River Power Authority, Omaha Public Power District, Iowa Public Power Agency and Missouri Public Utilities