Ensemble Theater (Chicago, IL)
Theater ("Black Ensemble" or the "Theater")
is a nationally and internationally-known
arts institution on Chicago's north side
that has been recognized as one of the most
diverse theaters in the country.
In the fall of 2013
Longhouse was engaged by the Theater to help
refinance its $5 million term loan that it
borrowed as part of its $20.0 million
construction of the Black Ensemble Theater
Cultural Center in 2011.
With the help of
Longhouse, and in the span of just 3.5
months, the Theater found a new long-term
financing partner through a competitive
process and issued a bank-qualified,
tax-exempt direct purchase bond.
The Bonds were issued with the
fixed rate of 3.15%. This rate was
185 basis points lower than the rate
offered by the Theater's existing bank
for the same time period.
The Theater was
able to issue bank-qualified bonds with
the City of Burbank as its
issuer-partner and save approximately 40
bps on its all-in rate.
Bonds featured a
6-month interest-only period followed by
20 years of monthly principal
amortization. The interest-only period
gave the Theater a welcome cushion of
time to grow into its principal
service coverage ratio of 1.10x tested
annually at fiscal year-end was the only
required financial covenant that the
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