InnoVative Capital Serves as Municipal Advisor to Metropolitan Development Housing Agency, Nashville, TN, $25 Million Tax-Increment Development Revenue Bond Issue

SPRINGFIELD, Pa. & NASHVILLE, Tenn., December 6, 2018 (Newswire.com) - InnoVative Capital LLC ("InnoVative Capital") served as Municipal Advisor to the Metropolitan Development and Housing Agency ("MDHA") in the structuring and financing of the MDHA's $25 million, Tax-Increment Development Revenue Bonds ("TIF") for the Fifth + Broadway Development Project (the "Project").

The bonds were aggressively priced and sold as nonrated securities at a blended interest rate of 4.99 percent, despite the bonds being structured without a funded Debt Service Reserve Fund at closing. This transaction was extremely well-received in the marketplace with wide investor participation from over 20 institutional firms. Factors contributing to this strong interest included: Nashville's growing economy, the Project being under construction, a commitment from an NYC investment firm to relocate its headquarters into 200,000 square feet of Fifth + Broadway office space, as well as having a well-regarded developer and the presence of the MDHA.

This TIF could not have been possible without the efforts of the senior management of the MDHA, its committed board, the professionalism of the developer, as well as their legal and financing team. I cannot be prouder of this bond issue and the MDHA's leadership in completing this TIF, which, due to the low bond interest rate, is also projected to return $25 million to the Metro District in excess cash flow over the life of the bonds. This is in addition to the financial benefits of the economic development and new jobs the Project will generate for Nashville.

Alan P. Richman, President and CEO, InnoVative Capital

"This TIF could not have been possible without the efforts of the senior management of the MDHA, its committed board, the professionalism of the developer, as well as their legal and financing team. I cannot be prouder of this bond issue and the MDHA's leadership in completing this TIF, which, due to the low bond interest rate, is also projected to return $25 million to the Metro District in excess cash flow over the life of the bonds. This is in addition to the financial benefits of the economic development and new jobs the Project will generate for Nashville," said Alan P. Richman, president and CEO, InnoVative Capital.

The Fifth + Broadway Project

The Fifth + Broadway Project, which is currently under construction, encompasses a 1.25 million-square-foot mixed-use development in the heart of downtown Nashville. Located on the 5.96-acre site of the former Nashville Convention Center, the Project will feature a vibrant live-work-play-shop environment, combining retail, dining and entertainment, as well as best-in-class residential and office towers. In addition to on-site amenities, tenants at the Project will benefit from the site's immediate proximity to Nashville's prime entertainment and sports venues, including the Bridgestone Arena, the Ryman Auditorium and the lower Broadway entertainment district. In addition to commercial, residential and office properties, the Project is proud to be the home of the new National Museum of African American Music.

About InnoVative Capital

Founded in 2000, InnoVative Capital maintains a national financial advisory practice and mortgage banking operations representing municipalities, local governments and agencies, public housing authorities, hospitals and the senior living industry. As an MSRB/SEC Registered Municipal Advisor, InnoVative Capital structures and executes rated and nonrated municipal bond transactions, including financing credit enhanced with mortgage insurance, government guarantees, tax-increments and bank support. As an FHA mortgage lender and USDA banker, InnoVative Capital delivers low-cost capital funding to underserved and economically disadvantaged communities.

About the Metropolitan Development and Housing Agency

MDHA, acting as the "Issuer" of the bonds, and the Metropolitan District's Administrator of Tax Increments and Tax Increment Financing, is a Tennessee public body corporate and politic and instrumentality of the Metropolitan Government of Nashville and Davidson County. MDHA assists in all phases of land assembly, design and development, and has seen the initiation and completion of several downtown development projects in Nashville, including the Nashville Public Library, Frist Center for Visual and Nissan Stadium. In addition to responsibilities as the Metro District's Redevelopment Agency, MDHA acts as its public housing agency, serving the citizens of Nashville by providing affordable housing to thousands of families through the implementation and execution of a variety of financing and low-income housing programs.

MEDIA CONTACT:

Alan P. Richman
President & CEO
InnoVative Capital
(610) 543-2490, Ext. 101
[email protected]
www.innovativecapital.com

Source: InnoVative Capital LLC