General Obligation Bond Services
Bonding Capacity
State laws determine the legal bonding capacity for local governments. L. J. Hart & Company uses their experience to calculate the maximum bonding capacity available. Bonding Capacity projections form the basis for current and future decisions regarding how issuers will address facility and capital project needs.
Debt Repayment Analysis
L. J. Hart & Company can provide several debt repayment plans based upon current market conditions, tax collection rates, assessed valuation growth assumptions, etc. The analysis services of L. J. Hart & Company helps the issuer anticipate future cash flow obstacles or take advantage of certain opportunities. By partnering with us, it becomes easier for local decision makers to select a plan that best meets their goals and enhances the chances for voter approval when necessary.
Refunding Analysis
Providing our client issuers with the best possible redemption provisions is a speciality of L. J. Hart & Company. With the Company’s philosophy of structuring financings with short call features, or the ability to pay off debt early, opportunities to refinance existing debt and realize significant interest savings may be available.
Many of our issuer clients have taken advantage of the short call features to refund higher interest bonds to lower interest rates. Not only does this reduce future interest expense, but it also provides greater flexibility for future facility needs.
Credit Enhancement
Credit enhancement is a method whereby an entity attempts to improve its credit worthiness. With credit enhancement, the lender is provided with reassurance that the borrower will honor its obligation through insurance, additional collateral, or a third party guarantee.
L. J. Hart & Company completes most of the application and can assist in the data gathering process. The Company has considerable experience in working with all rating agencies as well as the firms that provide municipal bond insurance to local governments. Having the benefit of this experience is useful in expediting the process, receiving competitive pricing of the insurance fee quotes, as well as the achievement of professional respect for the quality and completeness of the presentation.
Credit Ratings
An assessment of credit worthiness can be obtained through a credit rating. The credit rating is based upon the fiscal management of the issuer’s history of borrowing and repayment, as well as the availability of assets and the extent of an entity's liability.
L. J. Hart & Company provides complete service to issuers when applying for underlying credit ratings. We help compile, submit, and present the data that rating agencies request. In addition, we provide insight into the rating process to assist the borrower in pursuing long term strategies to help maintain and strengthen these ratings.
Form C Preparation
The calculation of the annual debt service levy is a service provided to clients by L. J. Hart & Company. Prior to the tax levy setting process we request the information that enables our staff to calculate the allowable debt service levy that can be submitted to the Missouri State Auditor’s Office and the County Clerk. This service will help identify the need to prepay existing bonds in order to maintain the current debt service levy and remain in a good position for a future no-tax levy increase general obligation bond proposal.
Missouri Direct Deposit Program
Missouri school districts issuing general obligation bonds for construction and refunding purposes are eligible, in most cases, to participate in the State of Missouri Direct Deposit Program. This program provides each issuer with an AA+ rating by S&P Global with no charges incurred by the school district.
L. J. Hart & Company completes the application needed for the State of Missouri Health and Educational Facilities Authority (MoHEFA) program. Since the development of this program, L. J. Hart & Company has completed over 1,800 separate financings with a total par value of $6.0 Billion.