March 12, 2020 03:30 PM Eastern Daylight Time
DALLAS–(BUSINESS WIRE)–Preston Hollow Capital (PHC), an independent specialty municipal finance company based in Dallas, announced today the successful completion of a $12 million tax-exempt and taxable non-rated bond transaction facilitating Roosevelt University’s acquisition of certain assets of Robert Morris University of Illinois.
Dallas-based Preston Hollow Capital completes bond financing for Roosevelt University acquisition despite challenges of the dislocated tax-exempt marketTweet this
The combination of the two universities will allow them to build upon their historic missions honoring diversity and access to education for first-generation students and minorities. The integrated university will continue to operate under the Roosevelt University name and will include the newly created Robert Morris Experiential College, where many of Robert Morris University’s existing programs will reside.
“We have many plans for our integrated University, and we look forward to working with all of our students, faculty and staff to implement them,” said Ali Malekzadeh, president of Roosevelt University. “This is beyond a business transaction; it is about preserving the culture and missions of both universities as we evolve in a complex industry. We are excited for the future and all of the new opportunities we are developing as a result of this partnership.”
“Preston Hollow Capital provided us with first rate services throughout this transaction,” added Dr. Malekzadeh. “Their team of experts were always available to give us advice and the benefit of their in-depth analysis. I cannot say enough good things about the professionalism of the PHC team.”
The financing was completed through the Illinois Finance Authority to fund acquisition costs as well as transition costs and capital improvements for the acquisition. “The timing of this transaction is notable,” said Charlie Visconsi, Co-Head of Transaction Originations at Preston Hollow Capital. “PHC was able to complete funding of the financing into a completely dislocated tax-exempt market without changing any of the terms of the financing that were agreed to with Roosevelt University in early 2020. Roosevelt University could not have completed this transaction in the capital markets, and it highlights the execution certainty that Preston Hollow Capital can deliver to borrowers.”
The funding includes $10 million of Series 2020A tax-exempt bonds maturing in 2050, plus $2 million of Series 2020B taxable bonds maturing in 2030. Preston Hollow Capital was the sole purchaser of the 2020 IFA Bonds. Stern Brothers served as the underwriter while Columbia Capital Management served as Roosevelt’s municipal advisor. The transaction was completed as a result of Preston Hollow Capital, in its role as Bondholder Representative, approving the issuance of the additional Series 2020 debt for Roosevelt University.
“Once again Preston Hollow Capital provided a highly flexible, customized financial solution specifically catered to Roosevelt’s needs for this transaction,” said Andrew Harris, CFO of Roosevelt University. “The blend of features such as draw down bonds, client defined call features, and delivery assurance during highly volatile market conditions perfectly matched our needs at Roosevelt University.”
About Preston Hollow Capital
Preston Hollow Capital (www.phcllc.com) is the leading solution provider in municipal finance. Headquartered in Dallas, Preston Hollow Capital is an independent municipal finance company with over $1.8 billion in permanent equity capital and over $3.6 billion in investment capacity from a diverse investor base comprised of founding management, institutional investors including funds managed by Stone Point Capital LLC and HarbourVest Partners, and several prominent family offices. Since being founded by Chairman & CEO Jim Thompson in 2014, PHC has closed nearly $2 billion in transactions across a variety of sectors of the municipal bond market including real estate, senior living, K-12 and higher education, healthcare, infrastructure, general government and economic development. PHC differentiates itself with its ability to deliver capital with speed, certainty and flexibility.
Max Pickle, Preston Hollow Capital, LLC