Bonds are the bedrock of development finance and are used to help build roads, bridges, sewers, city halls, hospitals and thousands of public and private projects. For over a century, bonds have been spurring development and redevelopment and are a major driver for job creation and economic growth.
CDFA’s highly acclaimed Intro Bond Finance Course provides an in-depth look at tax-exempt financing with an emphasis on industrial development bonds (IDBs), 501(c)(3) non-profit bonds, new clean renewable energy bonds (NCREBs) and other special bond programs authorized by the federal government. Plus, this course looks at how FHLB Credit Enhancement Provisions are positively impacting bond transactions all across the country.
This course is essential for public leaders, economic development professionals, financial experts and anyone working to address local economic challenges. Join CDFA in Washington, DC to learn how to bring economic growth to your community by utilizing the vast resources of the development bond finance industry. No other event or organization provides the overview and insight into this important economic driver.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
By attending, you will:
- Discuss the difference between governmental and private activity bonds and when to use them.
- Learn which projects qualify for financing using industrial development bonds, 501(c)(3) bonds, and other forms of private activity bonds.
- Discover best practices employed by successful issuing authorities from across the country.
- Gain a greater understanding of the various players involved in a bond transaction and why each of their roles is important.
- Examine the bond transaction process from start to finish.
- Review federal tax rules and filing requirements.
- Receive the latest edition of CDFA’s Development Bond Finance Reference Guide
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You will learn through:
- Real life case studies
- Interactive, small group exercises
- Presentations from industry experts
- A comprehensive reference guide
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Topics covered include:
- Governmental and Qualified Private Activity Bonds
- Small Issue and 501(c)(3) Bonds
- New Clean Renewable Energy Bonds
- Build America Bonds
- Recovery Zone Bonds
- FHLB Credit Enhancement Provisions
- Internal Revenue Code Rules
- Roles of Bond Counsel, Underwriters and Trustees
- Bond Ratings and Credit Analysis
- Structuring and Sizing Bond Issues
- How Bonds are Sold
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Who should attend?
- Bond Issuers
- Economic Development Professionals
- Community Development Professionals
- Broker/Dealers and Underwriters
- Elected Officials
- Government and Nonprofit Finance Officers
- Corporate Trustees
- Legal Counsel
- Underwriters
- Commercial Bankers
- Accountants
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Course Advisor:
Jerry J. Arkebauer serves as the Council's Bond Finance Course Advisor providing expertise, leadership, and direction for CDFA's Training Institute. Arkebauer's subject knowledge and experience provides CDFA with a unique insight into the use of bond financing for spurring investment and economic development.
Mr. Arkebauer served as Vice President of Finance for the Toledo-Lucas County Port Authority from 1997 to 2006 where he was responsible for developing the Port Authority’s Northwest Ohio Bond Fund Program and other stand-alone bond issues. He has completed 89 bond issues for more than $1 billion. Similar Bond Fund Programs later were initiated at four other Ohio Port Authorities to offer long-term, fixed rate bond financing for fixed assets. He also is president of Arkebauer & Associates, LLC, a business and public sector consulting firm he established in 2007. Through consulting contracts, Mr. Arkebauer serves as a consultant to the Blanchard Valley Port Authority, with offices in Findlay, Ohio; the Regional Port Authority of Northwest Ohio, with offices in Defiance, Ohio; the Sandusky County – Seneca County Port Authority with offices in Tiffin, Ohio; and the Port Authority of Springfield, Ohio.
Mr. Arkebauer received a Bachelor of Arts degree from the University of Toledo, and he is also the administrator of the Northwest Ohio Regional Economic Development Association (NORED) which represents economic development professionals in 12 Northwest Ohio counties.
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The following is the preliminary agenda for this course. This agenda will be updated and modified slightly to accommodate speakers and content. However, the main areas of content as outlined in this agenda will be covered.
| 8:00 – 8:30 am | Continental Breakfast & Registration |
| 8:30 – 9:00 am | Welcome & Overview |
Welcome participants, introduce CDFA and set the stage for the two-day course.
| 9:00 – 9:15 am | The Basics of Tax-Exempt Bonds |
Bonds are the bedrock of development finance and are the cornerstone of most development finance projects. This session will introduce the basics of tax-exempt bonds including the various types of bonds, the general process for issuing bonds, and important terms.
| 9:15 – 10:30 am | Governmental and General Private Activity Bond Rules |
Knowing the differences between governmental and private activity bonds is an essential element of issuing bonds. This session will outline the basic characteristics of each type, explain the tax-exemption, and review the private business use test.
| 10:30 am – 12:00 pm | Small Issue Tax-Exempt Bond Financing |
Small issue tax-exempt bonds, or industrial development bonds, are the primary source of financing for small- to medium-sized manufacturers. The speakers will discuss in detail the rules for using IDBs, types of projects that may qualify for this form of financing, and the caveats for its use. A case study will be introduced.
| 12:00 – 1:15 pm | Lunch on Your Own |
| 1:15 – 1:45 pm | 501(c)(3) Bonds |
501(c)(3) bonds for nonprofits generally follow the same rules for private activity bonds, but there are some important differences. This session will look at the rules for 501(c)(3) bonds and the types of nonprofits that may qualify for this form of financing.
| 1:45 – 2:45 pm | Structuring & Sizing Bond Issues |
The structure of a bond issue will influence several other decisions, including its size and the borrowing costs. This session will explain how best to structure a bond to meet an issuer’s needs, and will outline repayment, maturity schedules, legal limitations, policy objectives, market conditions, and other factors. Discussion of the case study will continue.
| 3:00 – 3:45 pm | How Bonds Are Sold |
Municipal bonds are sold by one of three methods: negotiated, competitive, or private placement. This session will review the basics concepts of each method and outline key considerations. The method that might be best for the case study will be discussed.
| 3:45 – 4:30 pm | Bringing a Negotiated Issue to Market |
Bringing a negotiated issue to market involves several players. This session will look at the necessary steps required in a negotiated issue and discuss the roles and responsibilities of the underwriter, financial advisor, and placement agent, among others. The case study will be reviewed to determine if it could be the subject of a negotiated sale.
| 8:00 – 8:30 am | Continental Breakfast |
| 8:30 – 9:00 am | The Role of the Issuer |
The issuer is the glue that holds the entire bond issue together. Because the issuer interfaces with all of the key players in a deal and often has multiple deals in process, it is vital to set consistent and straightforward policies. This session will review program management, policies and procedures, governing board review, interacting with the borrower, and selecting which projects to finance. The issuer’s roles in the case study will be reviewed.
| 9:00 – 10:00 am | The Role of Bond Counsel and Underwriter's Counsel |
Every bond transaction requires the careful involvement of many players. This session will specifically look at the role that bond counsel and underwriter’s counsel plays. Attendees also will learn about the documents they are required to produce as well as disclosure information. Any special documents required for the case study will be discussed.
| 10:15 – 11:15 am | The Role of Trustee |
Trustees play an important role in the bond issuance and monitoring process. This session will examine the legal responsibilities of a trustee, the types of funds and accounts, how the electronic bond system works, and the trustee fee structure. How the trustee will assess the case study will be undertaken.
| 11:15 am – 12:00 pm | The Role of the Rating Agencies |
The rating agencies play an important role in the bond issuance process. This session will provide an overview of the role the rating agencies play, the meaning behind their ratings, the rating process, and fees associated with ratings. Analysis of whether or not the case study is the kind of a transaction that would be rated will be considered.
| 12:00 – 1:15 pm | Lunch on Your Own |
| 1:15 pm – 2:30 pm | Renewable Energy Bond Financing Tools |
Renewable energy has become a major focus for the development finance industry. Over the past several years, a variety of bond financing tools have been created to help spur energy development. This session will cover New Clean Renewable Energy Bonds and Property Assessed Clean Energy Bonds (PACE) as well as traditional bond financing mechanisms.
| 2:45 – 4:00 pm | Closing the Deal |
A bond issue can only be successful if it is closed properly. This session will pull all of the themes of the course together and explain the final important steps to closing the deal. Case study examples of deals will be presented, as well as lessons learned, last-minute problem solving techniques, and potential continuing disclosure requirements.
The course will take place at the DoubleTree Washington DC in the Dupont Circle neighborhood and within walking distance to the White House. CDFA has negotiated a significantly reduced nightly room rate of $199 for course attendees. To reserve a room, contact the DoubleTree Washington DC at (202) 232-7000 or visit CDFA's special hotel reservation page.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
Register before February 17, 2012 for Early-Bird Rates.
| Early-Bird Registration | Standard Registration |
| Member | $550.00 | $600.00 |
| Non-Member | $675.00 | $725.00 |
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