Bond Team Assists on a Sophisticated High-End Deal Directly Related to the Current Credit Crisis
A global investment banking and securities firm turned to Holland & Knight in a complicated refunding transaction. The firm was the lead underwriter of an issuance by a development corporation of $420 million variable rate Revenue Refunding Bonds, Series 2009A, and more than $450 million fixed rate Revenue Refunding Bonds, Series 2008B, that were issued to refund $850 million of the corporation's auction rate bonds that were experiencing failed auctions due to the current credit crisis.
The transaction included various forms of credit and liquidity enhancement, including bond insurance, two letters of credit and three standby bond purchase agreements. The issuer and the state of New York were motivated to close this deal quickly due to its failing debt auctions.