Leases

AFG also assists school districts and other government entities with lease purchase financings for capital equipment. Services provided by AFG include the preparation of bid solicitation documents, solicitation of the proposed lease to potential providers, review and analysis to determine the lowest cost bid, and assistance to local counsel regarding the preparation of the lease agreement and closing the lease transaction. The following are examples of AFG’s professionals providing advice on lease transactions.

Camden County Improvement Authority
AFG’s professionals have provided financial advisory services to the CCIA since 1994. A description of the wide array of financings and financing programs is included in the following case studies.

1995 - 2005 Capital Equipment Lease Program
AFG’S professionals provided financial advisory services to the CCIA in connection with $18.48 million Capital Equipment Lease Financing of 2005, which closed in December 2005. The CCIA annually finances equipment and infrastructure improvements for the County of Camden. The lease revenue financing is structured with a lease agreement between the Authority and the County and is secured by a County Guaranty. In 2005, this transition also included the participation of two municipalities within the county. As financial advisor, AFG’S professionals assisted the CCIA with structuring the financing, preparing the Local Finance Board application, preparing the Preliminary and Final Official Statements, the negotiation of the pricing and the closing the transaction.

Similar financings were completed in the years 1995 through 2004 in the aggregate principal amount of $172.08 million.

Capital Equipment Lease Refunding
In May 2005, AFG’S professionals assisted the CCIA in connection with the issuance of $21.35 million in refunding bonds. This series refunded a portion of the remaining callable 1995-2000 series, not refunded as part of the 2003 refunding transaction (described below) along with the callable series 2001, 2002A and 2003B bonds. This transaction resulted in present value savings of $668,000 or 3.3% of the par amount of refunded bonds.
In July 2003, AFG’S professionals assisted the CCIA with the issuance of $44.075 million County Guaranteed Lease Revenue Refunding Bonds. These bonds advance refunded a portion of the CCIA’s outstanding Series 1994, Series 1995. Series 1996, Series 1997A, Series 1998C, Series 1999, and Series 2000 bonds that were eligible for advance refunding. This refunding provided the CCIA with present value savings of approximately $1.3 million.