Preston Hollow Community Capital Closes $180,452,854 Tax-Exempt Pooled Securities (TEPS™ ) Financing

Strong Investor Demand for $120,000,000 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 July 25, 2024 pricing and August 1, 2024 closing of a $180.45 million Tax-Exempt Pooled Securities (“TEPS™”) financing through the Public Finance Authority (“PFA”). The financing consists of $120 million of Class A Certificates, which have been assigned an Aa3 (sf) rating from Moody’s Investors Service, and $60.45 million of Class B Certificates, which are not rated.

The Certificates are secured by a collateral pool of tax-exempt bonds, all of which were directly originated by PHCC. TEPS™ 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 investors. PHCC purchased the $60.45MM Class B Certificates.

Jim Thompson, Chairman and CEO of Preston Hollow, commented, “Market reception for TEPS™ continues to expand with this issuance, our third since we first introduced the program a year ago. We continue to view TEPS™ as a leading source of our future funding, and we plan to continue as a regular issuer. We’re appreciative of J.P. Morgan’s contribution as the underwriter of this issuance and the previous issuance. J.P. Morgan’s investor marketing and municipal credit teams led investor education and marketing efforts that helped expand the buyer universe. They’re a first-class operation.”

J.P. Morgan Securities LLC and Hilltop Securities Inc. served as the Underwriters for the Class A Certificates. Kutak Rock LLP and Daniels & Rhodes LLC served as counsel and disclosure counsel to the Sponsor, respectively. Orrick, Herrington & Sutcliffe LLP served as counsel to the Underwriters, and Ballard Spahr LLP served as counsel to the Placement Agent.

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. PHCC invests in bespoke municipal finance transactions with a diversified investment portfolio. PHCC has invested over $5.2 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 and investors like Stone Point Capital, HarbourVest Partners and TIAA. PHCC has received long-term BBB (Stable) and short-term K2 (Stable) ratings from Kroll Bond Rating Agency.

Visit www.phccap.com for more information.