Creative Financing Program Pays Off
Key Facts
- Since 1970, the Vermont Municipal Bond Bank has been assisting Vermont’s municipalities with access to long-term bond financing with very low interest rates.
- The Vermont State Colleges System enrolls over 12,000 students, including over 10,000 Vermonters each year.
The Situation
Serving as bond counsel to the Vermont Municipal Bond Bank (VMBB) since 1995, we recently advised this long-standing client as they designed and implemented a new financing structure for the Vermont State Colleges System (VSCS). Consisting of five state colleges and representing the public higher education system within the state, the VSCS was seeking a creative way to manage their debt.
The Approach
With a working relationship of more than 20 years, Mintz has amassed an intimate understanding of VMBB’s business and the world they operate in — allowing our lawyers to not only serve as bond counsel to the transaction, but to also advise on disclosure statements, prepare audits for the IRS and address any outstanding tax concerns. With their debt under new management and a board of trustees in place, the VSCS continues to increase enrollment and increase the retention of its students, thanks to the collaboration of the VMBB and our lawyers.
The Outcome
Our work with the bond bank resulted in the launch of a brand new financing program for the state colleges system, which improved the management of their debt.
