Municipal Advisory Services

There are numerous steps involved in completing a capital financing, from developing a financing model to authorizing the financing to document development to securing bond ratings, as well as the actual sale and closing of the financing. Among the more visible of steps taken during the financing process are the following:

Financial Modeling

We have extensive experience creating financial models including, among others, state building programs, state revolving fund programs, multibillion-dollar transportation plans, and school district capital improvement funding models. Each of these models is created specifically for the particular client. Over time these models are continually revised and refined to fit the changing needs of each client. We design these financial models to be extremely flexible and useful planning tools.

Financing Alternatives

Prior to recommending a particular financing structure, we will review various financing alternatives to determine the best fit for the project. Our goal is to develop a structure that provides the most cost-effective financing within the client’s risk profile. Among ideas that are considered are public offering versus direct placement, fixed rate and floating rate debt and various security and/or repayment structures. By working through multiple scenarios, we are able to determine those that best meet the client’s objective. We work with the client to refine these scenarios to create the recommended structure.

Document Development

Throughout the financing process, various approvals and presentations will be required. JNA Consulting Group will help develop the materials to be presented in support of the financing. Among these documents are debt management commission packets, bond rating and insurance presentations, official statements, secondary market disclosure, and debt management policies.

Bond Sale and Closing

JNA coordinates the sale and closing of the bonds. We will review the proposed issue and recommend the appropriate type of sale, competitive or negotiated, public or private. Prior to the sale we discuss market conditions, the expected number of potential bidders, and projected interest rates with the issuer. After the sale, we prepare the closing memo and provide direction concerning the wiring of bond proceeds. We also prepare a post-sale analysis containing a follow-up on market conditions, comparison to other bond sales, comparison to appropriate indices, and the final financial model.