MCM's Financing Program Provides

• Long-term secure financing that lengthens repayment schedules (up to 30 years)
• Fixed Rate - debt service fixed for the term of the financing
• Allows more utilization of State of Michigan school aid dollars due to longer repayment schedules
• Percent of State school aid available for programs and services increases each year
• Improves balance sheet
• Tax-Exempt Interest Rates - approximately 7.00%
• Certificates of Participation (COPs) issued to acquire Facility, improve existing facility, or construct a new Facility
• Security Required
  • 20% pledge of State school aid
  • First mortgage covering the Facility
  • One year's debt service reserve fund
• Flexible Repayment Terms
  • Interest only for the first two(+) years
  • Principal amortization typically does not commence until the third or fourth year
• Capitalized Interest - up to 2 years (no payments made by the PSA during the capitalized interest period)
• Reserve Fund - one year's debt service
• Borrower Contribution - no borrower contribution required!
• 100% Financing
• Costs of Issuance - paid out of the proceeds of the COPs
• No Property Taxes paid on the Project

For additional information, please contact either John Grafelman or Jay Hromatka at (612) 338-0200