-Overview
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 governmental and qualified private activity bonds, with a focus on industrial development bonds (IDBs), 501(c)(3) non-profit bonds, exempt facility bonds, and other special bond programs authorized by the federal government.
The Intro Bond Finance Course addresses the basic requirements for issuing a bond, the rules and regulations that govern tax-exempt and taxable bonds, the major players involved in a bond transaction, and the roles and responsibilities of both public and private sector participants. Plus attendees will learn about the tax-exempt bond market, the ratings process, how to buy and sell bonds, and ongoing continuing disclosure.
This course is essential for public leaders, economic development professionals, financial experts, and anyone working to address local economic challenges. Learn how to bring economic growth to your community by utilizing the vast resources of the development bond finance industry.
This course qualifies for the CDFA Training Institute's Development Finance Certified Professional (DFCP) Program. Join us online, and start down the road to personal and professional advancement today.
Register
Course Objectives
- 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 role is important
- Examine the bond transaction process from start to finish
- Review federal tax rules and filing requirements
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Topics Covered
- Governmental and Qualified Private Activity Bonds
- Small Issue and 501(c)(3) Bonds
- 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
- Ongoing Continuing Disclosure
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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
- Attorneys
- Accountants
- Financial Advisors
- Policy Makers
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Course Advisor
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Mitchell Smith
Council of Development Finance Agencies
Director, Government & External Affairs
Mitchell Smith is the Director of Government and External Affairs at the Council of Development Finance Agencies. Previously, Mitchell worked for the Ohio Legislative Service Commission on the education research team and served as the committee ... staffer for the House of Representatives Primary and Secondary Education Committee. There, Mitchell drafted legislation and legal research memos on behalf of the Ohio General Assembly.
A native of Bentonville, Arkansas, Mitchell attended the University of Arkansas – Fayetteville, where he received his B.A. in American Studies and Political Science in 2009 and was a punter for the Razorbacks. Thereafter, he completed his M.A. in American History in 2013. He then relocated to Ohio University to complete a Ph.D. in American History. His specialization is in American diplomatic history, politics, and culture. He currently is completing his dissertation, tentatively entitled “The Politics of Assent: The Prowar War Movement in America’s Vietnam War, 1965-1975.” (More)
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-Agenda
Monday, March 4, 2024
| Mon 12:00 PM - 12:15 PM |
Welcome & Overview
Welcome participants, introduce CDFA, and set the stage for the course.
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| Mon 12:15 PM - 1:00 PM |
Why Bond Financing?
Tax-exempt bonds help stimulate public and private investment in job creation, business and industry expansion, economic and physical redevelopment, transportation and infrastructure, and renewable energy production. Issued by over 50,000 state and local governments and authorities, tax-exempt bonds represent a three trillion dollar industry. To begin the course, we will look at the importance of tax-exempt bonds, the types of projects and businesses they support, and discuss why tax-exempt bonds are one of the nation’s most critical economic engines.
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| Mon 1:00 PM - 1:45 PM |
The Basics of Bond Finance
Bonds are the bedrock of development finance and are the cornerstone of most development finance projects. This session will introduce the basics, including the various types of bonds (both tax-exempt and taxable), the general process for issuing bonds, important terms, and key players in the transaction.
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| Mon 1:45 PM - 2:00 PM |
Break
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| Mon 2:00 PM - 3:45 PM |
The Partners Involved
Every bond transaction requires the careful involvement of many players. This session will look at the roles that the issuer, underwriter, bond counsel, trustee, and rating agencies play in a bond transaction. We will discuss the responsibilities of each player, selecting the right team of partners, and any special documents that need to be produced.
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| Mon 3:45 PM - 4:00 PM |
Break
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| Mon 4:00 PM - 5:00 PM |
Types of Tax-Exempt Bonds
Knowing the differences between governmental and private activity bonds is an essential element of issuing bonds. This session will explain the key differences, and then outline the variety of tax-exempt bonds available, focusing primarily on industrial development bonds, 501(c)(3) bonds for non-profits, and exempt facility bonds, among others. We will discuss the types of projects that may qualify for this form of financing and the caveats for their use.
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| Mon 5:00 PM |
Adjourn
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Tuesday, March 5, 2024
| Tue 12:00 PM - 12:15 PM |
Revisiting Day 1
The first day of the Intro Bond Finance Course discussed bonds from a global perspective and introduced the basic concepts and players involved. At the start of Day 2, we will review some important terms and set the stage for the remaining sessions focused on the more technical aspects of bond financing, including the rules, and structuring the bond issue.
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| Tue 12:15 PM - 2:00 PM |
Issuing Bonds - The Rules
Tax-exempt bonds are governed by a series of strict rules depending on the type of project and bond being used. This session will discuss the basic rules for issuing tax-exempt bonds, including the private business use test, alternative minimum tax, volume cap, use of proceeds, TEFRA hearings, and other important rules from the federal government. We will also look at post-issuance compliance policies and provide a brief overview of the important items to monitor during compliance, including bond proceeds, arbitrage, and rebate.
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| Tue 2:00 PM - 2:15 PM |
Break
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| Tue 2:15 PM - 3:30 PM |
Structuring the Deal
The structure of a bond issue will influence several other decisions, including the size and borrowing costs. This session will look at the sources and uses of funds and explain how best to structure a bond to meet the needs of the borrower. We will consider the variety of tools that could be combined with bonds when structuring a deal, including loan funds, tax credits, tax increment financing, credit enhancement, and others. The panel will also address repayment, maturity schedules, legal limitations, market conditions, how bonds are sold, and the process of bringing a bond deal to market.
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| Tue 3:30 PM - 3:45 PM |
Break
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| Tue 3:45 PM - 5:00 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, potential continuing disclosure requirements, and last-minute problem-solving techniques.
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| Tue 5:00 PM |
Adjourn
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-Location
The Intro Bond Finance Course will take place on Zoom. The course will meet each day from 12:00-5:00 PM Eastern. Attendees must have access to a computer and the internet to attend the course.
-Registration
This training course qualifies for the CDFA Training Institute's
Development Finance Certified Professional (DFCP) Program. Start down the road to personal and professional advancement today.
Scholarships are available to attend this event. Learn more about the
CDFA Scholarship Program,
and submit your application today.
CDFA permits only one person to log in and participate in the course. If multiple people are accessing the course without paying to attend, we will terminate the connection and access. CDFA offers group discounts for organizations that wish to register multiple people.
Register by February 16, 2024 for Early Bird Rates.
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CDFA Member: $550
Non-Member: $825
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CDFA Member: $600
Non-Member: $875
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Register