One-Step Approval Process
Certain types of financings are eligible to finance through DASNY’s one-step Board approval process. These include:
- State Supported debt financings;
- Financings for highly rated higher education and health care borrowers. Highly rated is defined as an expected rating in the ‘A’ category or better by at least one rating agency;
- Specific refundings for private clients that are currently in DASNY’s portfolio (including refunding of DASNY and/or non-DASNY Bonds); and
- School District Finance Revenue Bond Program financings.
Potential borrower contacts DASNY by calling the Managing Director of Public Finance and Portfolio Monitoring at (518) 257-3362.
DASNY, the potential borrower, the banker and/or financial advisor discuss the proposed financing and DASNY’s approval process.
New York State Department of Health (DOH) – DOH approval is required for health care institutions financing new money bonds (borrowing to match Certificate of Need (CON) approved costs) and/or restructurings of existing debt. Application is prepared by DASNY staff and will need to be submitted to DOH four-five weeks prior to DASNY staff presenting the financing to the DASNY Board members for approval.
State Environmental Quality Review (SEQR). Every Project financed by DASNY must be reviewed for the Project’s impact on the environment. SEQR must be completed before the DASNY Board members can approve the financing.
Tax Equity and Fiscal Responsibility Act Hearing (TEFRA). In most instances, a TEFRA hearing may be required for private institution financing.
DASNY Resolution to Proceed and Adoption of Documents (One-Step Board Approval) --- DASNY’s Board reviews a report that is developed by DASNY staff that provides an overview of the institution, a description of the Project, and the structure of the proposed borrowing. A letter from bond counsel will describe certain Documents (i.e., General Resolution, Series Resolution, Loan Agreement). The DASNY Board adopts the Documents which authorize the bond issue to proceed to sale.
The Public Authorities Control Board (PACB) reviews and authorizes DASNY to proceed with the financing.
Depending on the type of sale, the bonds are sold accordingly.
- Negotiated Sale - The Preliminary Official Statement is mailed. Pricing generally occurs one week after mailing of the Preliminary Official Statement (POS).
- Competitive Sale - The Preliminary Official Statement and Notice of Sale is mailed, bids are accepted and awarded to the bidder with the lowest interest cost.
- Private Placement Sale – The sale is arranged with a Qualified Institutional Buyer (QIB).
A pre-closing is typically held the day before the closing in order to assemble all the documents and required signatures necessary for the delivery of the bond proceeds. At the closing, execution of the documents is necessary for the delivery of the bond proceeds. Closing generally occurs two weeks after pricing.
Two-Step Approval Process
In this process, the first step is to have the DASNY Board review the proposed financing including a report that is developed by DASNY staff that provides an overview of the institution, a description of the Project, and the structure of the proposed borrowing. The Board is asked to approve a Resolution to Proceed with the financing. In the second step, the DASNY Board is asked to adopt the Documents (i.e., General Resolution, Series Resolution, Loan Agreement) which authorizes the bond issue to proceed to sale.
Potential borrower contacts DASNY by calling the Managing Director of Public Finance and Portfolio Monitoring at (518) 257-3362.
DASNY, the potential borrower, banker and/or financial advisor discuss the proposed financing and DASNY’s approval process.
New York State Department of Health (DOH) – DOH approval is required for health care institutions financing new money bonds (borrowing to match Certificate of Need (CON) approved costs) and/or restructurings of existing debt. Application is prepared by DASNY staff and will need to be submitted to DOH four-five weeks prior to DASNY staff presenting the financing to the DASNY Board members for approval.
Resolution to Proceed – DASNY’s Board reviews the proposed financing including a report that is developed by DASNY staff that provides an overview of the institution, a description of the Project, and the structure of the proposed borrowing. The Board is asked to approve a Resolution to Proceed with the financing.
The Public Authorities Control Board (PACB) reviews and authorizes DASNY to proceed with the financing.
State Environmental Quality Review (SEQR). Every Project financed by DASNY must be reviewed for the Project’s impact on the environment. SEQR must be completed before the DASNY Board members can give final approval of the financing.
Tax Equity and Fiscal Responsibility Act Hearing (TEFRA). In most instances, a TEFRA hearing may be required for private institution financings.
Adoption of Documents – A letter from bond counsel will describe certain Documents (i.e., General Resolution, Series Resolution, Loan Agreement). The DASNY Board adopts the Documents which authorize the bond issue to proceed to sale.
Depending on the type of sale, the bonds are sold accordingly.
- Negotiated Sale - The Preliminary Official Statement is mailed. Pricing generally occurs one week after mailing of the Preliminary Official Statement (POS).
- Competitive Sale - The Preliminary Official Statement and Notice of Sale is mailed, bids are accepted and awarded to the bidder with the lowest interest cost.
- Private Placement Sale – The sale is arranged with a Qualified Institutional Buyer (QIB)
A pre-closing is typically held the day before the closing in order to assemble all the documents and required signatures necessary for the delivery of the bond proceeds. At the closing, execution of the documents is necessary for the delivery of the bond proceeds. Closing generally occurs two weeks after pricing.