Preston Hollow Community Capital Closes $202,500,000 Tax-Exempt Pooled Securities (TEPSTM ) Financing

Strong Investor Demand for $135,000,000 Class A Certificates

DALLAS--(BUSINESS WIRE)--Preston Hollow Community Capital (“Preston Hollow” or “PHCC”), a provider of specialized impact financing solutions for projects of social and economic importance to local communities, announces the February 14, 2024 pricing and February 23, 2024 closing of a $202.5 million Tax-Exempt Pooled Securities (“TEPS^TM”) financing through the Public Finance Authority (“PFA”). The financing consists of $135 million of Class A Certificates, which have been assigned an Aa2 (sf) rating from Moody’s Investors Service and $67.5 million of Class B Certificates which are not rated.

The Certificates are secured by a collateral pool of tax-exempt bonds, the vast majority of which were directly originated by PHCC. TEPS^TM provides PHCC with an attractive cost of capital, a more standardized financing structure and reliable access to long-term funding through the tax-exempt capital markets.

The Class A Certificates were oversubscribed, with orders from nearly 20 different investors. PHCC purchased the $67.5MM Class B Certificates.

Jim Thompson, Chairman and CEO of Preston Hollow, commented, “This is our second TEPS^TM transaction following our successful 2023 inaugural issuance, and we’re gratified by the strong market reception. We see TEPS^TM as a leading source of our future funding and we plan to be a regular issuer.”

J.P. Morgan and Hilltop Securities Inc. served as the Underwriters for the Bonds. Kutak Rock LLP and Squire Patton Boggs (US) LLP served as counsel and disclosure counsel to the Sponsor, respectively, with Orrick and Ballard Spahr LLP serving as Underwriters’ counsel.

About Preston Hollow Community Capital

Preston Hollow Community Capital is a market leader in providing specialized impact finance solutions for projects of significant social and economic importance to local communities in the United States. The Company invests in bespoke municipal finance transactions with a diversified investment portfolio. PHCC has invested over $5.1 billion since its inception across various sectors of the municipal bond market, including real estate, K-12 and higher education, healthcare, infrastructure, hospitality, general government, and economic development.

Since its inception, Preston Hollow has raised $1.6 billion in committed, permanent equity capital from premier sponsors like Stone Point Capital, HarbourVest Partners and TIAA. The Company has received long-term BBB (Stable) and short-term K2 (Stable) ratings from Kroll Bond Rating Agency.

Visit www.phccap.com for more information.