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Transportation Financing

Transportation

Finance Group

Public finance has been, and continues to be, the focus of George K. Baum & Company. Our transportation team provides innovative and responsible strategic planning solutions for our clients' capital projects. GKB has served as senior manager, co-senior manager or municipal advisor on more than 60 transportation financings over the past five years with a combined par amount exceeding $6.8 billion.

Transportation Finance Office Locations

Transportation Finance Group

Transportation finance is a major part of George K. Baum & Company's municipal finance operation. We continue to work closely with state and local governments to structure revenue-based financings to gain the best advantage possible. We provide special expertise in full funding grant agreements, strategies to leverage both federal and state funds and user fee strategies in conjunction with design-build contracts.

George K. Baum & Company has provided underwriting or municipal advisory services to many transportation and mass transit issuers, including the Colorado Department of Transportation, Chicago Transit Authority, Kansas Department of Transportation, Arizona Department of Transportation, Missouri Department of Transportation, Alaska Department of Transportation, North Texas and Texas Turnpike Authorities, and E-470 Public Highway Authority. George K. Baum & Company acted as a co-manager on the 2006, 2007, 2008 and 2010 Illinois Tollway financings and the 2010 Denver Regional Transportation District FasTracks project. GKB served as financial advisor on the 2012 Utah County Mass Transit Revenue Bonds.

TOLL ROADS

 E-470 Public Highway Authority
Northwest Parkway Public Highway Authority
North Texas Turnpike Authority
Kansas Turnpike Authority
Illinois State Toll Highway Authority
Massachusetts Bay Transportation Authority
New York State Thruway Authority
Florida State Turnpike

STATE DEPARTMENT OF TRANSPORTATION

Colorado Department of Transportation
Kansas Department of Transportation
Arizona Department of Transportation
Missouri Department of Transportation
Maryland Department of Transportation
New Mexico State Highway Commission
Florida Department of Transportation
Wisconsin Department of Transportation
Texas Department of Transportation

AIRPORTS

Denver International Airport
St. Louis (Lambert Field)
Port Authority of New York and New Jersey
Chicago O'Hare International Airport
Kansas City International Airport
Oklahoma City Airport Trustees
Cheyenne Regional Airport
Colorado Springs Airport

MASS TRANSIT

Chicago Transit Authority
Regional Transportation District (CO)
Metropolitan Area Rapid Transit (Atlanta)
Utah Transit Authority
Missouri-Illinois Bi-State Development Authority
New Jersey Transportation Trust Fund Authority

PARKING FACILITIES

City of Chicago
City and County of Denver
City of Colorado Springs
George K. Baum & Company has served as senior manager or municipal advisor on transportation financings for the following issuers:

MISSOURI DEPARTMENT OF TRANSPORTATION 

In October 2001, George K. Baum & Company senior-managed a $200 million State Road Bond financing for the Missouri Department of Transportation and the Missouri Highways and Transportation Commission. We co-managed two other financings in 2000 and 2002 totaling $453 million. All of these bonds were issued as part of MoDOT's recently authorized $2.25 billion bonding program.


E-470 PUBLIC HIGHWAY AUTHORITY (COLORADO)

In 2000, George K. Baum & Company completed a $358 million bond refinancing for the E-470 Public Highway Authority. We have served as co-senior manager on all E-470 Beltway Project financings since 1986-issues totaling more than $17 billion in senior and subordinate revenue bonds.


NEW MEXICO FINANCE AUTHORITY

George K. Baum & Company served as co-senior manager for the New Mexico Finance Authority's GARVEE financing, with responsibility for coordinating communications among the rating agency, letter of credit banks and bond insurance agency's contact with the Federal Highway Administration.

KANSAS DEPARTMENT OF TRANSPORTATION 

In November 2000, George K. Baum & Company sole-managed a $100 million variable-rate bond financing for the Kansas Department of Transportation, which we currently remarket. Since 1990, we have provided co-managing services on more than $1.4 billion of KDOT bonds.


COLORADO REGIONAL TRANSPORTATION DISTRICT

George K. Baum & Company has been providing underwriting services to the Colorado Regional Transportation District since 1974. In the past five years, we have senior-managed four issues totaling $85 million and co-managed another $222 million in RTD bonds. In addition to the bond financings, our Firm provides various finance-related services to the RTD on an ongoing basis. Early in Denver's light rail planning process, our quantitative staff worked with RTD's finance staff to develop a clear, easily understood format in which to present the light rail finance plan. In 1994, George K. Baum & Company was asked to help RTD staff develop an appropriate Southwest Corridor Light Rail Proposal. Most recently, our staff has assisted RTD in developing a program for using COPs to finance buses, equipment and facilities that previously could only be funded on a cash or grant basis. It is anticipated that our recommendation of a "master lease" under which COPs would be issued and "cross-collateralized" for greater security will be used to finance a substantial piece of RTD's 1997-2001 fleet replacement program.

George K. Baum & Company has assisted the following issuers with transportation financings as Senior Manager or Municipal Advisor

ALASKA

Alaska
City of Valdez


COLORADO

Colorado Department of Transportation
Colorado Regional Transportation District
City of Colorado Springs
City and County of Denver
E-470 Public Highway Authority
City of Englewood
City of Fort Collins
City of Fraser
Northwest Parkway Public Highway Authority
Starwood Metropolitan District


FLORIDA

Florida Capital Projects Finance Authority


ILLINOIS

City of Chicago
DuPage Airport Authority
City of Evergreen Park

KANSAS

Cowley County
City of Derby
Franklin County
City of Garden City
City of Hays
Kansas Department of Transportation
Kansas Development Finance Authority
Salina Airport Authority
Sumner County
City of Topeka
City of Winfield


MISSOURI

Missouri Development Finance Board
Misouri Highways & Transportation Commission


NEW MEXICO

New Mexico Finance Authority
New Mexico State Highway Commission
City of Taos


UTAH

City of Lehi
City of Salt Lake City
City of West Jordan
Our Transportation 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.

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.