CAPITAL, LIQUIDITY, AND CASH FLOW SOLUTIONS

Creating Liquidity Through Asset Monetization

 

Are you a postsecondary leader in need of financing options?  Are you short on cash reserves, borrowing from endowment, or do you lack the resources to invest in strategic academic initiatives or make upgrades to a deteriorating campus infrastructure?  Is your institution distressed and unable to access conventional funding through bonds or bank debt?  If yes, then you may want to consider Terra Firma's Asset Monetization Program.
 

What is the Terra Firma Asset Monetization Program?  It is a unique sale/leaseback/donation model where your institution monetizes an asset (e.g. an academic building, an administrative building, a residence hall, a student center, etc.) by using tax-exempt municipal bonds.  Through our partnership with Campus Capital Partners and more than 100 institutional investor network, we will help you execute a 30 year lease and in return receive cash proceeds for the sale of your asset to our partners.  The asset is then donated back to the institution at the end of the lease.  Funding is available in approximately 60 days after approval.

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Why is our Asset Monetization Program superior to traditional capital sources?

• It monetizes existing assets (not limited to housing)

• It overcomes existing debt restrictive covenants and current bond debt

• It can be subordinate to existing debt

• There are no capital use restrictions

• There is no institutional capital or debt required

• It collateralizes individual assets instead of blanket collateralization of the entire campus

• It can finance a college through weak financials and poor credit ratings

• It utilizes a Master Lease Agreement to meet FASB and GASB tax code compliance allowing us to offer off-balance sheet transactions with no effect on the institution's current bond rating

• It utilizes a customized operating agreement to allow for an annual donation of a percentage of the asset and net cash flow back to the institution

• It provides a mechanism to improve the institution's CFI rating.

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