We have provided arbitrage rebate and yield compliance services to issuers located throughout the country and have performed our calculations under federal tax code interpretations as set forth in Arbitrage Certificates prepared by many of the country’s leading bond counsel firms.
As the leading firm of verification agents in the country, we are continually aware of new issues that have an impact on arbitrage rebate compliance. In the past three years alone, we have provided arbitrage rebate computation services on a variety of bond structures including:
- Fixed rate issues
- Variable rate issues
- Construction issues
- Refunding issues
- Multifamily and single-family issues
We have extensive experience dealing with complicating factors such as: allocation of commingled funds, transferred proceeds, universal cap considerations, amortization of upfront letter of credit fees and deemed swap termination payments.
We recognize that paying a professional CPA firm to compute the amount of rebatable arbitrage associated with an issue of tax-exempt bonds, is often not contemplated by the issuer at the time the bonds were sold. Because rebate calculations vary in complexity, our pricing structure takes into account the actual effort required to complete the rebate analysis and passes along any savings we realize. We also look for characteristics of a transaction that may result in a reduced rebate liability, improved future earnings on existing assets or an immediate cash payment to the issuer. Many of our engagements are performed at the request of financial advisors with whom we consult regularly on rebate planning issues.