Stout was engaged by a university to serve as financial advisor during a complex credit facility restructuring. The university used a large global bank to provide a letter of credit in support of municipal bond offering. The bank was exiting the letter of credit business and pushed the university into workout despite the absence of covenant breaches or loan defaults. Stout negotiated an extension of maturity of the letter of credit facility and a related loan to provide the university with time to develop a plan to refinance the bonds.
Stout met with management of the university as well as board members to assess the university’s financial health and validate the school’s plans for growing enrollment. Stout then provided a report to the lender in support of the request for the loan extension and led the negotiations with the bank. Stout worked with a public finance investment bank to secure an investment grade credit rating for the university. The credit rating was essential to issuing new bonds and replacing the lender.