MHC has provided tax-exempt financing to nonprofits exclusively over the past 26 years. 2013 was an exceptional year, since our economic recovery has been evident and steady, yet interest rates remain low. Its great to see nonprofits feeling more confident and also pursuing the excellent opportunity current interest rates provide

Here is a list of recent MHC completed transactions; the summaries below will give you a sense of what’s possible at the present:

• A medium sized senior housing nonprofit engaged MHC to refinance $9.8 million of existing long-term debt with an average interest rate of 5.3%. This new note bears a rate of 2.31%, which will reduce my client’s annual interest expense the first year by $290,000.
• A small energy conservation nonprofit engaged MHC to finance its first-ever building acquisition, included in the $760,000 note were additional dollars to finance a renovation in order to accommodate its new use as an office building and headquarters for this nonprofit. The interest rate was 2.95%.
• A Christian school (elementary and high school) engaged MHC to refinance all outstanding notes and to provide dollars needed for various school improvements. The total note was $1,500,000 and the interest rate was 2.45%.
• A medium sized senior housing nonprofit engaged MHC to refinance all long-term indebtedness and to provide new money for the construction of a 16-bed memory care department. The total financing amounted to $7.0 million; the interest rate is 2.85%.
• A large (annual revenues of $88 million) senior housing parent engaged MHC to refinance $5.8 million outstanding on an underperforming assisted living campus. The interest rate was reduced by approximately 50% thus cutting annual interest expense by approximately $136,000. This reduction was then coupled with improved census and this operating unit has regained its profitability.
• A large senior housing parent engaged MHC to refinance $10 million of outstanding long-term debt related to two separate nursing homes. Interest rate is 2.38%, annual interest expense was reduced by approximately $225,000.

MHC represents solely the interests of its nonprofit client. All notes are placed with community banks located near your facility. MHC is a low overhead transaction manager with fees greatly less than traditional investment bankers. MHC has completed approximately 300 bank private placements on behalf of nonprofit clients. That experience demonstrates what is possible when community banks are subjected to a competitive offering for a nonprofit located next door.

MHC’s nonprofit finance program can assist MW nonprofits in their ongoing and never-ending quest to cut costs. Please call or email if you have loans on your balance sheet that would be improved by the current interest rates or if you have capital improvements needing financing.