Working Capital

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State and local public entities often issue tax and/or revenue anticipation notes (TRANs) as a cost-effective means to satisfy their cash flow borrowing and working capital needs for projected shortfalls due to the irregular timing of the receipt of tax and other revenues as well as the scheduled payment of payroll and other expenses. Kutak Rock’s national public finance lawyers have extensive experience in guiding various public entities through the complex federal tax law and other issues related to the issuance of tax-exempt TRANs. We have taken part as bond counsel, underwriter’s counsel or special tax counsel in more than 440 TRANs financings with an aggregate principal amount in excess of $43.7 billion. Our firm has provided these legal services for a variety of entities including states, cities, counties, school districts and special-purpose financing agencies, enabling our clients to utilize TRANs as a low-cost borrowing alternative for short-term deficit financing. We are committed to leveraging all of our expertise, experience and resources to assist our clients throughout these transactions in a professional and cost-effective manner.

Our firm was involved in structuring the first pooled TRANs financing in 1984 involving school districts and other educational entities. In a pooled TRANs financing, the local entities are able to achieve economies of scale by combining their TRANs together in order to make the TRANs more marketable to the public and to spread the costs of issuance of the TRANs among all of the participating entities. Recognized for our expertise in structuring the initial pool of TRANs, we have been instrumental in structuring similar pooled TRANs financings in several states, including a statewide pooled TRANs financing in California involving school districts, community college districts and county boards of education. Because of constant changes in federal tax law, state law and federal securities law, as well as changes in the marketplace for credit enhancement and investment opportunities, the structure of the annual pooled TRANs financings needs to be modified constantly. Our national public finance attorneys have the expertise and current market knowledge required to develop the ideal cost-effective financing structure for a pooled TRANs financing.