What it costs to issue industrial revenue bonds

Every cost from the first call to the day the bonds are issued — the underwriting or placement fee broken into its parts, each lawyer, issuer and state fee, what you pay even if the deal never closes, what can come out of bond proceeds, and what it costs each year after.

1 The issue

Amount of bonds ($ millions)Kind of projectState of the projectShows the state’s volume cap fee rules.How the bonds will be soldBond term (years)Used for the yearly costs after closing.Financial statements The project includes land or buildings (title, survey, appraisal, environmental) We will hire our own municipal advisor A feasibility study or independent engineer’s report is needed

2 The underwriting or placement fee

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3 Other quotes you have (optional)

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Bond counsel ($)Issuer’s closing fee ($)Issuer’s application fee ($)Issuer’s counsel ($)Your own counsel ($)Trustee acceptance and counsel ($)Volume cap allocation fee ($)

4 Interest, construction and reserves

For the sources and uses at closing and the all-in cost. Your assumptions — not quotes.

Interest rate on the bonds (%)Blank uses an illustrative rate for the structure.Construction period (months)Rate earned on unspent proceeds (%)What the construction fund earns while invested; federal rules may limit it to the bond yield.Debt service reserve fund Pay interest from proceeds during construction (capitalised interest)

5 Structure the issue (optional)

Fill in what you know; each section of the answer appears once it has what it needs. Your assumptions — not quotes.

Total project cost ($ millions)Size the bonds to fund all of it.Company equity ($ millions)Cash the company puts in.Costs that do not qualify ($ millions)Working capital, furniture for offices, refinancing — they share the 5% allowance.Land bought with bonds ($ millions)No more than 25% of net proceeds.Average useful life of what is financed (years)Bonds may average no more than 120% of it.Repayment shape

Earnings and covenants — coverage, stress, break-even rate

Cash flow before debt service, EBITDA ($ millions a year)Existing debt payments ($ millions a year)Existing debt outstanding ($ millions)Coverage covenant (×)Buyers usually ask for 1.20–1.35×.Maximum leverage, debt to EBITDA (×)

Early redemption, reserve and serial bonds

First optional call (year)Call price (% of par)Make-whole discount rate (%)A Treasury yield you look up, plus the spread in the documents.Surety policy premium (% of the reserve)Ask a bond insurer; illustrative only.Yield step per year of maturity (basis points)For serial bonds: how much less a 1-year bond yields than the next. Illustrative.

Refunding older bonds (current refundings only)

Old bonds outstanding ($ millions)Old bonds’ rate (%)Years left on the old bondsRedemption price (% of par)Days from the new closing to redeeming the old bondsMust be 90 or fewer.

Small-issue limits and the arbitrage rules

Capital spending at the site, 3 years before ($ millions)Planned capital spending, 3 years after ($ millions)Earlier small-issue bonds for this site ($ millions)Other tax-exempt bonds benefiting the company ($ millions)Counts toward the $40 million limit per beneficiary.Months to spend the project fundBlank uses the construction period.

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About this tool. Results are calculated automatically from the figures you enter and from illustrative assumptions set by Securitief as of October 2026. The assumptions are not quotes or indications and are not derived from licensed indices (MMD, BVAL, ICE). Results are estimates for general information only — not a recommendation, a determination of eligibility, a credit approval, or tax, legal or municipal advice; actual rates, costs, timing and availability will differ.

Whether a project qualifies for tax-exempt bonds is determined by bond counsel and the issuer; volume cap allocation is at each state’s discretion. Securitief is not a placement agent or underwriter and does not seek or receive compensation from any financing. It is not your municipal advisor and owes you no fiduciary duty; you may wish to consult an independent registered municipal advisor and your own counsel. Information you submit is handled as set out in the privacy notice.