Leaders from Key Government Finance worked with Buffalo Niagara Medical Center in New York to find a refinancing solution that saved them nearly a million dollars.
“Buffalo Niagara Medical Center is an existing client. They had done tax-exempt financing for the construction of a parking garage and that was coming up for a refinance. Key Government Finance offered both a refinance and a real estate solution and they ultimately chose to work with us,” said David Zapata, Vice President, East Region Manager at Key Government Finance.
Buffalo Niagara Medical Center looks at refinancing
Leaders at New York’s Buffalo Niagara Medical Center (BNMC) needed to look at options for refinancing as the tax-exempt financing on a parking garage matured. Their goals were to find a financing solution that would save them money to put into improvements to the campus.
It was important for BNMC to be able to make improvements to their campus for staff, patients and visitors. This commitment to ongoing campus improvements is the reason BNMC initially financed a parking structure - they needed more parking on campus and the garage provided more than 2,000 extra parking spots.
BNMC invited financing providers, including Key Government Finance, to recommend new financing options that would help them meet their goals.
Key presents two options
Key Government Finance and KeyBank offered a conduit financing option through the Buffalo and Erie County Industrial Land Development Corporation that would save BNMC nearly $1M in bond interest. They also offered a taxable financing solution through the KeyBank Real Estate Capital Group.
“We have the ability to structure a financing deal that best fits the client’s needs and we are flexible because we realize each client is different,” said Zapata. “We have the ability, expertise and knowledge to come up with a solution that makes the most sense for each client.”
Ultimately, the conduit solution from Key Government Finance was selected as it offered the lowest cost and interest for BNMC.
“At the time, it was before increased rates. It was the right place and the right time for them to take advantage of current market interest rates to get interest rate savings,” said Zapata. “If organizations do have outstanding tax-exempt, bank-held debt and they’re looking for options for refinancing, they should give us a call and we can walk through solutions for them.”