Description

WHEFA, created by the Legislature in 1973 (Chapter 231, Wisconsin Statutes), has been providing active capital financing assistance to Wisconsin health care institutions since 1979. In 1987, WHEFA's charter was expanded to include the issuance of bonds for the benefit of independent colleges and universities and certain continuing care facilities. In 2004, WHEFA's charter was further expanded to include the issuance of bonds for the benefit of private, non-profit elementary or secondary educational institutions.

WHEFA staff assists health care and educational institutions in analyzing financing alternatives and in structuring revenue bond issues to meet their needs. This financial advisory service is available to all eligible borrowers even if WHEFA is not the ultimate issuer for the financing. Funds for each project are obtained through the sale of revenue bonds of the WHEFA. Bonds are sold to institutional lenders in "direct placement" transactions and to individual and institutional investors in "public offerings". Bond sale proceeds are loaned by WHEFA to the borrowing institution or project sponsor. No state or other public funds are used. Additional benefits and economies are gained when WHEFA does system financings, pooled loan programs, or structured financing programs which are utilized by multiple borrowers. Since 1994,WHEFA has offered a reinvestment program through which projects that educate or improve the capital finance process for its constituents are eligible for grant funds.

WHEFA's bonds are payable solely out of loan repayments from the borrowing institution or sponsor. They are not a debt, liability, or "moral" obligation of the State of Wisconsin or any of its political subdivisions. WHEFA has no taxing power.

The credit supporting any WHEFA bond issue is the credit of the borrowing institutions involved. The availability of financing and its terms and conditions depends in each case upon the credit-worthiness of those institutions. In most cases, interest paid on WHEFA bonds is exempt from federal income taxation, resulting in materially lower financing costs to the borrowing institution. Interest on bonds issued by WHEFA is not exempt from present Wisconsin income taxation.