The Applicant brings together its necessary financing team, which may include lenders, underwriters, accountants, bond counsel and other consultants. The Applicant assesses whether its project qualifies for private activity bond financing, and whether financing it’s project through the issuance of private activity bonds makes economic sense. The Tempe IDA is not a loan originator, lender, broker or underwriter. Accordingly, the Tempe IDA does not make or procure loans. Rather, the Tempe IDA simply serves as the conduit issuer of private activity bonds for qualifying transactions. For a diagram of the key difference between a typical corporate bond structure and private activity bond structure, click here.
The Applicant submits its application for a private activity bond transaction to the Tempe IDA. Download the Tempe IDA’s private activity bond application and Procedural Pamphlet below.Download Application
Various governmental notifications and approvals are needed for a private activity bond transaction. This includes approval by the Board of Directors of the Tempe IDA; a TEFRA hearing; approval by the State Attorney General; approval by the Tempe City Council; and a private activity bond volume cap allocation must be requested by the Applicant and confirmed by the Arizona Finance Authority.
The documents related to the issuance and sale of the private activity bonds are finalized, executed and delivered. This may include, without limitation, offering memoranda, a trust indenture, loan documents, mortgages and other collateral pledges, and other items.
The private activity bonds are sold (either privately or publically) and the funds are disbursed.
For a more detailed look at the steps involved with a private activity bond transaction, click here.