Government Finance

On July 11, 2023, the Housing Authority of the City and County of Denver, Colorado (DHA or the Authority) closed its Series 2023A and B Multifamily Housing Revenue Bonds, issued to finance its Flo Senior Apartments project. DHA issued taxable and tax-exempt bonds under a single integrated debt financing product, backed by its general revenues, in the capital markets for its 212-unit apartment building for seniors and non-elderly disabled residents. KeyBanc Capital Markets served as Sole Manager on the transaction.

DHA is a quasi-municipal corporation with a portfolio of over 13,000 units and housing choice vouchers, providing affordable housing to more than 27,000 very low, low, and middle-income individuals. DHA's mission is to serve the residents of Denver by developing, owning, and operating safe, decent, and affordable housing in a manner that promotes thriving communities. DHA has been creating vibrant communities and sustainable neighborhoods since 1938.

The Denver Housing Authority remarked on the transaction, noting ‘Key did an excellent job in underwriting and marketing the Multifamily Housing Revenue Bonds for the Housing Authority's Flo project which generated over $7 million in economic benefit to the project over a private placement financing option.’ To learn more, visit the DHA website at denverhousing.org.

On December 1, 2022, KeyBanc Capital Markets (KBCM) successfully closed the $205 million Sales Tax and Telecommunications Revenue Refunding Bonds, Series 2022 (the 2022 Bonds) on behalf of Utah Telecommunication Open Infrastructure Agency (UTOPIA). The 2022 Bonds were rated AA- by S&P and were used to refund UTOPIA's outstanding LIBOR-based Tax-Exempt Series 2011A and Taxable Series 2011B Bonds and provide funds to terminate related swap contracts. The excess proceeds will be used to finance the acquisition, construction, and installation of advanced communication lines, equipment and improvements, refreshment of major electronics, and related improvements and facilities as part of a fiber optic, open-access, advanced communications network. KBCM served as Sole Manager for the 2022 Bonds.

KBCM has a long-standing relationship with the UTOPIA/Utah Infrastructure Agency (UIA) – a component of UTOPIA. The UIA network is a fiber optic network of high-speed broadband voice, video and data access and includes fiber optic lines, transmitters, power sources and backups, switches and access portals. It operates as a wholesale network, under an open access model, which is available to all qualified service providers. Since its inaugural issuance in 2011, KBCM worked with UIA’s finance team, underwriting subsequent issues in 2013, 2015, and 2017 through and including 2022.

On November 17, 2022, KeyBanc Capital Markets (KBCM) successfully closed $3 billion of Senior Secured Credit Facilities in relation to the John F. Kennedy Airport Terminal 6 Redevelopment. On March 24, 2018, the Terminal 6 Consortium of Vantage Airport Group, RXR Realty LLC, JetBlue Airways and American Triple I Partners was designated by the Port Authority of New York & New Jersey as the preferred developer to redevelop the new terminal. Terminal 6 is a $4.2 billion construction project for a period of 30-year lease agreement. KBCM served as Coordinating Lead Arranger and Swap Provider on the transaction.

On November 1, 2022, KBCM served as Sole Manager for $6.5 million of Tax-Exempt Revenue Bonds, Series 2022A (the “2022A Bonds”) and $2.8 million Taxable Revenue Bonds (the “2022B Bonds” and together with the 2022A Bonds, the “2022 Bonds”), for the City of Albany Capital Resource Corporation on behalf of the Albany College of Pharmacy and Health Sciences (the “College”). The 2022 Bonds were issued to (a) refund the City of Albany Industrial Development Agency’s (i) Civic Facility Revenue Bonds (CHF-Holland Suites, LLC Project), Series 2007A (the “2007A Bonds") and (ii) Civic Facility Revenue Bonds (CHF-Holland Suites II, LLC Project), Series 2008A (the “2008A Bonds” and together with the 2007A Bonds, the “Prior Bonds”), (b) finance costs to refund the Prior Bonds, and (c) pay costs of issuance. The Prior Bonds financed the leases and improvements to two student housing facilities (301 beds) and parking areas on the College’s campus by CHF-Holland Suites LLC and CHF-Holland Suites II LLC.

Founded in 1881, the College is a private, independent institution with a long tradition of academic and research excellence. The College’s mission is to educate the next generation of leaders to improve the health of our society. To date, the College has graduated more than 16,414 students in the increasingly complex profession of pharmacy and related fields.

On September 30, 2022, KeyBanc Capital Markets (KBCM) closed as Structuring Agent, the largest single transaction in Commercial Property Assessed Clean Energy (C-PACE) history. The record $153 million C-PACE financing will be used to fund energy efficient measures, including interior and exterior LED lighting, HVAC, and seismic strengthening throughout the planned Black Desert Resort, located in Ivins, Utah. As Structuring Agent to Reef Capital Partners, KBCM helped size and structure the C-PACE financing allowing access to low-cost, long-term funding to complete the capital stack for the Resort.

The Black Desert Resort, developed by Reef Capital Partners, will include a luxury resort hotel, approximately 1,000 condos, 190,000 square feet of retail, restaurants, and commercial space, 25,000 square feet of event space, a full clubhouse, and a 19-hole golf course.

C-PACE is a unique, policy enabled financing mechanism for eligible energy, water and seismic efficiency measures in commercial property.

On August 9, 2022, KeyBanc Capital Markets (KBCM) successfully closed $2 billion of Senior Secured Credit Facilities in relation to a Student Housing Portfolio Acquisition. In early 2022, Blackstone Real Estate announced an acquisition of American Campus Communities (ACC), a publicly traded REIT. ACC holds a portfolio of over 27,000 beds on university campuses and $3.7B of equity value across 18 universities and spread over 34 distinct assets. KBCM served as Coordinating Lead Arranger on the transaction.

The Project was named North America Social Infrastructure Deal of the Year by Proximo, for 2022.

On July 7, 2022, KeyBanc Capital Markets (KBCM) successfully closed $200.2 million of Senior Secured Credit Facilities (Credit Facilities) for Axium Infrastructure’s development of the University of Massachusetts Amherst (UMass Amherst) Student Housing Expansion. Proceeds from the Credit Facilities are being used to design, build, finance, operate, and maintain the student housing facilities which consist of 623 beds of undergraduate apartment style housing and related infrastructure, and 201 beds of graduate student apartment style housing and related infrastructure. KBCM served as Joint Lead Arranger and Swap Provider on the transaction.

On July 7, 2022, KeyBanc Capital Markets (KBCM) successfully closed $4.9 billion of Senior Secured Credit Facilities in relation to the John F. Kennedy Airport New Terminal One Development and Expansion. On October 4, 2018, the New Terminal One Consortium of Ferrovial, The Carlyle Group, JLC Infrastructure, and Ullico was designated by the Port Authority of New York & New Jersey as the preferred developer to redevelop the 100% international passenger terminal, The New Terminal One, pursuant to a 30-year lease, on the area historically occupied by Terminals 1, 2 and 3. This is an $8.3 billion construction project. KBCM served as Senior Managing Agent on the transaction.

Richmond University Medical Center successfully completed its $31,160,000 Series 2022 Tax-Exempt Revenue Bonds offering. The proceeds of the Series 2022 financing will be used to fund capital projects and was issued through the Build NYC Resource Corporation.

On June 30, 2022, Cain Brothers, a division of KeyBanc Capital Markets, successfully closed Build NYC Resource Corporation’s Tax-Exempt Revenue Bonds, Series 2022 on behalf of Richmond University Medical Center. The proceeds of the 2022 Bonds were used for (i) (A) the design, construction, furnishing and equipping of a new 30,772-square-foot addition for new surgical suites and related facilities to an existing building under construction that will total 69,982 square feet upon completion, which is located on the Institution’s Campus, and (B) other hospital expansions, renovations and equipment to be located on the Institution’s Campus; (ii) the funding of the Series 2022 Bonds Debt Service Reserve Fund; and (iii) paying certain costs of issuance of the Series 2022 Bonds. The transaction was a follow-on to the limited public offering in 2018 which allowed the Hospital to achieve optimal operational and structural flexibility along with aggressive financing terms.

Richmond University Medical Center is located on the northeastern portion of the borough of Staten Island, New York, and is a full-service, acute care, teaching hospital for the residents of Staten Island. The Institution’s geographic distinction, as being the only hospital on Staten Island not located in a designated flood zone, makes the Institution a strategic resource for borough residents in the event of flood-related natural disasters. The Institution is a not-for-profit, 501(c)(3) healthcare provider, offering patient-centered care through a full spectrum of emergency, acute, primary, behavioral health and medical services.

On May 12, 2022, KeyBanc Capital Markets (KBCM) successfully closed the $30 million Tax-Exempt Telecommunications Revenue Bonds (the Series 2022 Project), Series 2022 (the 2022 Bonds) on behalf of the Utah Infrastructure Agency (UIA). A portion of the proceeds from the Series 2022 Bonds were used for the acquisition, construction, and installation of advanced communication lines, equipment and improvements, refreshment of major electronics, and related improvements and facilities as part of a fiber optic, open-access, advanced communications network. KBCM served as Sole Manager for the 2022 bonds.

The Series 2022 Project includes the construction of “last mile” or access-level fiber in defined footprints, lateral infrastructure to commercially zoned areas, “curb to the premises” construction and connection to the UIA/UTOPIA Network where available. UIA estimates that approximately 180,000 accessible addresses will have fiber available from the curb, with connection from the curb to the premises orderable.

On April 28, 2022, KeyBanc Capital Markets (KBCM) successfully closed the $6.7 million Franchise and Sales Tax Revenue Bonds (Santa Clara Project), Series 2022 and the $5.9 million Franchise and Sales Tax Revenue Bonds (Cedar Hills Project), Series 2022 (collectively, the Projects) (collectively, the 2022 Bonds) on behalf of the Utah Infrastructure Agency (UIA). KBCM served as Sole Manager for the 2022 Bonds.

The Projects consist of the acquisition, construction, and installation of advanced communications lines, equipment, and related improvements and facilities as part of a fiber optic, open-access network located within the respective Cities. The Projects include the construction of “last mile” or access-level fiber in defined footprints, lateral infrastructure to commercially zoned areas, “curb to the premises” construction and connection to the UIA Network and/or UTOPIA Network where available.

In January 2022, Cain Brothers served as the FHA Mortgage Lender on the $47,342,500 and $7,791,100 FHA 242 / 223(a)(7) refinancings for Ellis Medicine. The FHA 242 223(a)(7) program allowed Ellis to lower their existing interest rate while maintaining the final maturity of the loans. The financing significantly lowered Ellis’s cost of capital, resulting in a total of $4.8 million in present value savings for the two refundings. The original use of proceeds for the 2012 loan was to renovate its existing ED space and expand the capacity of the ED with new space. The original use of proceeds for the 2014 loan was for a renovation project as well. The construction was a 45,000 sqft, 2 story plus basement addition to the Hospital’s existing acute care hospital. The addition included a 36-bed intensive care unit, storage area, a visitor entry. Ellis has been in the FHA program since 2004 and continues to have FHA as a partner for any further capital needs.

Ellis Medicine, with its main campus located in Schenectady, NY, is a 438-bed community and teaching healthcare system serving New York’s Capital Region. Ellis consists of four campuses – Ellis Hospital, Ellis Health Center, Bellevue Woman’s Center and Medical Center of Clifton Park – five additional service locations, with more than 3,300 employees and over 700 members in its’ medical staff. Ellis offers an extensive array of inpatient and outpatient services – including cardiac, cancer, emergency, neuroscience and women’s services. For over 125 years, Ellis has continued to grow to meet the health needs of its community.