A Very Special Place
In February and March of 2013 Prager & Co., LLC ("Prager" or the "Firm") completed two transactions for A Very Special Place, Inc. ("AVSP"). A Very Special Place, Inc. was established in 1974 as a not-for-profit corporation to provide services to people with developmental disabilities. Today, after 36 years of service to the community, AVSP serves over 1,100 participants across a wide variety of services offered.
The first transaction, in February of 2013, allowed AVSP to move $4,840,000 of floating rate bonds with onerous covenants from their existing, publicly held, variable rate debt portfolio to a variable rate direct purchase obligation held by a single bank without the restrictive covenants. While the rate on the bonds was not lowered, the removal of the covenants allowed for significantly greater flexibility for AVSP. This transaction was followed in March by the refunding of $6,795,000 of fixed rate debt. The lower rate of borrowing from the direct purchase led to a net present value savings of approximately $1.69 million for AVSP.