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ERIC Number: EJ914676
Record Type: Journal
Publication Date: 2010-Nov
Pages: 2
Abstractor: ERIC
Reference Count: 0
ISSN: ISSN-0036-651X
Private Placement Debt Financing for Public Entities
Holman, Lance S.
School Business Affairs, v76 n9 p26-27 Nov 2010
Private placement financing is a debt or capital lease obligation arranged between a municipality or a 501(c) (3) not-for-profit organization and a single sophisticated institutional investor. The investor can be a bank, insurance company, finance company, hedge fund, or high-net worth individual. Private placement financing is similar to municipal bonds and notes because it is used to finance a public agency's capital equipment, real property, infrastructure, technology, and working capital needs. Private placement obligations offer an efficient solution for borrowers who want additional payment and prepayment flexibility and a quick funding solution, and who will accept a slightly higher rate. Traditional municipal bonds allow borrowers access to the capital markets for small and large transactions with extended financing terms, and some prepayment restrictions, in exchange for a slightly lower rate. (Contains 1 table.)
Association of School Business Officials International (ASBO). 11401 North Shore Drive, Reston, VA 20190. Tel: 866-682-2729; Fax: 703-478-0205; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Descriptive
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A