New York Foundling

In June 2012, Prager & Co., LLC served as placement agent on two related transactions for the New York Foundling Charitable Corporation and the New York Foundling Hospital (collectively the "Foundling"). These financings were structured as direct bank purchases, $15,205,000 issued by Build NYC (New York City) and $5,000,000 Rockland Economic Assistance Corporation ("REAC") respectively, and represented the first direct bank purchases for the Foundling and Build NYC.

Founded as a home for abandoned children, the Foundling has been saving children, preserving families and building communities since 1869. The Foundling's extensive network of community-based services provides havens for children whose safety is at risk, loving foster homes and specialized facilities to protect children, and support for families to strengthen them. In the tradition of openness and compassion of its sponsors, the Sisters of Charity, the agency touches the lives of more than 13,000 people each year in the New York City area and in Puerto Rico as it upholds its guiding principle: Abandon No One.

The 2012 direct bank purchases were used to refinance existing debt of the Foundling to achieve debt savings so that more funds may be used directly to support children and families. The bonds refunded by the Build NYC transaction were originally issued to fund the construction of an office and charter school facility in the Bronx, New York, Mott Haven Academy, which serves children in the poorest congressional district in the country. The Rockland Economic Assistance Corporation transaction was used to refinance the outstanding loans of six residential facilities in Rockland County, New York for savings.

Prager identified the refunding opportunities and made a presentation to the Foundling that recommended utilizing the less traditional direct bank purchase, rather than the Foundling's traditional bond vehicle, a public offering of tax-exempt bonds. In May 2012, the Foundling tapped Prager to begin working on the refunding, with the request that all efforts be made to complete the transaction ahead of the June 30 fiscal year end to maximize financial savings for the Foundling. Working on an extremely aggressive timeline, Prager worked hand-in-hand with the entire financing team, including conducting weekly conference calls, coordinating discussion between the banks and the Foundling and working with bond counsel, to complete the project. Through the hard work of the entire financing team, the Foundling successfully closed both transactions on June 27th at interest rates significantly below those they would have received through more traditional financing methods.