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Correctional Facilities Jail Financing

Correctional Facilities

Financing

George K. Baum & Company has developed innovative techniques in the financing of criminal justice facilities. We have extensive experience with multiple bond structures financing capital projects including county jails and courts, juvenile detention facilities, emergency services buildings, city/town halls and governmental buildings.

Correctional Facility Financing Office Locations: 


Correctional Facilities

Over the past 10 years (1/1/2005 to 1/23/2015), we provided senior underwriting services for 43 correctional facilities and governmental building financings nationwide, with a total par amount of $791.6 million. Our reputation as a successful underwriter of public facility financings is well-established.


Our Correctional Facilities Finance professionals provide a wide range of experience to our clients. Cities, counties and states we have worked with include, but are not limited to, the following:

ALASKA

 AK Housing Finance Corporation (State Capital Building)


CALIFORNIA

Placer County (Juvenile Detention Facility, Jail Kitchens)
Placer County (Administrative and Emergency Services Building)
Tehama County (Social Services Building)


COLORADO

City of Aspen (Governmental Building)
Bent County (County Jail)
Chaffee County (County Jail)
CO Housing and Finance Authority (State Municipal League Office Building)
Eagle County (Joint Maintenance Service Center)
El Paso County (Detention Facility)
El Paso County (Judicial Building)
El Paso County (County Support Building)
El Paso County (County Buildings)
Fremont County (Governmental Buildings)
Garfield County (County Jail)
Garfield County (County Administrative Building and Maintenance Facilities)
Kit Carson County (County Jail)
Logan County (Justice Center)
Mesa County (Detention Center and Sheriff Facility)
City of Minturn (Town Hall)
Moffat County (Public Safety Center)
Morgan County (Human Services Building)
City of Parker (Governmental Building)
Pitkin County (County Administration Building)

IDAHO

Ada County (County Jail)


ILLINOIS

City of Burbank (Governmental Building)
City of Chicago (Goldblatts Building)
Du Page County (Governmental Building)
City of Evergreen Park (Governmental Building)
Kendall County (Governmental Buildings)

KANSAS

Atchison County (Governmental Building)
Chase County (County Jail)
Cowley County (Governmental Building)
Franklin County (Governmental Buildings)
Harvey County (Courthouse Improvements)
Johnson County (Governmental Building)
KS Development Finance Authority (Dept. of Human Resources Acquisition)
KS Development Finance Authority (Juvenile Detention Facilities)
KS Development Finance Authority (Dept. of Administration Restoration)
KS Development Finance Authority (El Dorado Diagnostic Unit)
KS Development Finance Authority (Governmental Buildings)
KS Development Finance Authority (Correctional Camp)
City of Lansing (Governmental Building)
City of Leawood (City Hall)
City of Lindsborg (Governmental Building)
City of McPherson (Governmental Building)


MISSOURI

Butler County (County Jail)
Christian County (Justice Center)
City of Gladstone (City Hall)
City of Gladstone (Governmental Building)
Greene County (Justice Center)
Laclede County (Criminal Justice Center)
Lafayette County (Justice Center)
Phelps County (County Courthouse)
City of Poplar Bluff (Governmental Building)
Saline County (Criminal Justice Center)
Scott County (County Jail)


NEW MEXICO

Otero County: Jail Project Re-Financing
Socorro County: Detention Center New Construction, GO Bonds and Revenue Bonds
Grant County: Jail Bond Refinance
Valencia County


OKLAHOMA

Rural Enterprises of OK (Cleveland County Health Department)


TEXAS

Hidalgo County (Governmental Building)
City of Littlefield, TX: Jail Project Refinance
El Paso County, TX: Detention Center Expansion


UTAH

Beaver County (Governmental Buildings)
City of Cedar City (Governmental Buildings)
City of Centerville City (Governmental Building)
City of Lehi (Governmental Building)
City of Murray City (Governmental Building)
City of Orem (Governmental Building)
Salt Lake County (Governmental Building)
Utah State Building Ownership Authority (Governmental Building)
Wasatch County (Governmental Building)
Washington County (Governmental Building)
Weber County (Governmental Buildings)
City of West Jordan (Governmental Building)
City of West Jordan (City Hall)

Our Correctional Facilities Finance professionals provide a wide range of services to our clients.
These services include, but are not limited to, the following:

UNDERWRITING SERVICES

George K. Baum & Company is one of the nation's leading underwriters of municipal bonds. Our decades of experience, combined with the frequency in which we bring bond issues to market, helps our clients obtain competitive borrowing costs and some of the most attractive terms available in the market.

MUNICIPAL ADVISORY SERVICES

The synergy of local expertise and national resources is unique to George K. Baum & Company and is the foundation of our municipal advisory business. These services are significantly complemented by our underwriting experience developed while working on other transactions. It is vital for a municipal advisor to be in-step with the market. We believe that to be an effective municipal advisor for a client, a firm must maintain an active underwriting presence on other transactions. Our underwriting experience allows us to analyze all of our clients' outstanding bonds for refunding opportunities, monitor market conditions to guide the timing of our clients' bond sales and interpret market activity. This underwriting experience allows us to identify the most effective structures and sale methods available for our clients' bonds and to make other informed recommendations to our clients when engaged as a municipal advisor.

DIRECT PLACEMENT FINANCINGS

In assessing a client's financing options, we detail the pros, cons and risks of direct placement financings or debt issuances sold in the public markets based on the competitive nature of the proposals and a client's own credit rating. George K. Baum & Company has a frequent presence pricing bonds in the primary market and in the arrangement of direct purchases. This experience enables our clients to obtain some of the lowest borrowing costs and most attractive terms available.

DUAL TRACK FINANCING PROCESS

George K. Baum & Company has developed a unique "dual track" financing process to assist clients in determining the most appropriate financing structure for their offering. The dual track includes distributing a credit package to banks and rating agency(ies) for their review as part of the client's Request for Proposal ("RFP") process. George K. Baum & Company orchestrates the RFP and rating processes and prepares a comprehensive summary analysis to simplify the decision-making process. The dual track RFP process often yields extraordinary results for our clients because banks are put in a competitive situation.

FINANCIAL PROJECTIONS MODELING

With direct input from the client, George K. Baum & Company utilizes its proprietary financial models that forecast and stress-test the client's future financial viability after incurring new, or refinancing existing, debt. The financial modeling process assists the client in developing parameters around a prudent level of debt capacity. The model is an interactive tool that can be adjusted and changed in real time, allowing for informed and efficient decisions. It also serves as the basis for conveying the client's current and future financial performance to potential financing partners.

NATIONAL HOUSING FINANCE GROUP

George K. Baum & Company has one of the largest and most diverse housing finance practices in the nation. Our team of bankers, quantitative analysts and underwriting/syndicate specialists work with state and local housing finance agencies to assess their needs and those of the communities they serve and develop product and finance solutions tailored to fit them.

PRIVATE ACTIVITY BONDS & ECONOMIC DEVELOPMENT PROJECTS

George K. Baum & Company has been involved in the evaluation, structuring, underwriting and distribution of private activity bonds since the 1960s. We are familiar with the credit practices of banks that issue letters of credit and are able to provide appropriate recommendations on coverage requirements, reserve funds, additional bonds tests, capitalized interest and pricing structures needed to sell the bonds at the least cost.

IN-HOUSE QUANTITATIVE CAPABILITIES

George K. Baum & Company is at the leading edge of quantitative analysis for municipal financings. Our commitment to quantitative analysis led to the formation of a specialized quantitative finance group whose sole responsibility is to develop and implement functional and analytical tools for our clients. Our quantitative professionals do not rely on any outside resources. All of the work performed for our clients is done in-house. Our significant experience in the area of debt structuring includes all aspects of refunding and cash flow modeling, such as crossovers, invested sinking funds and transferred proceeds. Our quantitative professionals specialize in performing a variety of important tasks, including;

• Bond Structuring
• Refunding Calculations & Innovations
• Pro Forma Analysis
• Escrow Restructurings
• Cash Flow Analysis

NEW PROJECT FINANCING

George K. Baum & Company assists our clients with a wide variety of debt financing for acquiring or expanding existing facilities or building new ones using publicly issued bonds or direct purchases. Our expertise in both the public markets and the direct purchase markets enables our clients to analyze the full range of financing possibilities.

RATING AGENCY PRESENTATIONS

George K. Baum & Company has developed proprietary methodologies for working with rating agencies to secure first-time, or obtain renewed, ratings for our borrowers. George K. Baum & Company devotes extensive resources to the development of each credit package with the intention of exceeding the expectations of the client and rating agencies.

REFINANCING & RESTRUCTURING DEBT

George K. Baum & Company assists our clients by taking advantage of market opportunities to refinance or restructure existing debt. Cash flow savings from reduced annual debt service can improve operating budget flexibility and be reinvested by our clients.

SWAP ADVISORY SERVICES

George K. Baum & Company has advised its clients on more than 400 interest rate swap transactions totaling more than $10 billion. Our Specialty Financial Products Desk works closely with our team and clients to implement an interest rate swap strategy that meets the financial needs of those clients.

SECONDARY MARKET SUPPORT OF BONDS IN THE MIDWEST

George K. Baum & Company's commitment to the municipalities of Kansas and Missouri does not end in the primary market. Investors know we are committed to supporting their bonds in the secondary market, and this significantly enhances our ability to place bonds as part of a primary offering. In the past 10 years, we have traded more than $34 billion of municipal bonds in the secondary market, including $4.6 billion of Kansas and Missouri securities.

STATE GOVERNMENT FINANCINGS

Our work in the Midwest has included bond issues to fund restoration of state capitol buildings, improvements to highways and turnpikes, structuring and implementation of clean water/wastewater revolving fund, and numerous healthcare and higher education financings.