Practice Areas: Public Finance

Higher Education and Private School Financings

McGuireWoods is a leading authority in tax-exempt financings for institutions of higher education, as well as for private secondary and elementary schools. Over the last 20 years, we have served as bond counsel, underwriter's counsel, school counsel, issuer's counsel or lender's counsel on transactions large and small, from approximately $200,000,000 for the University of Virginia, to $1,000,000 for The Montessori School of Westminster, Maryland.

We have been at the forefront of federal and state constitutional law analysis of tax-exempt financings benefiting educational institutions affiliated with religious groups. With our municipal litigation group, we spearheaded several important validation cases in Virginia regarding the separation of church and state for tax-exempt bonds for religiously affiliated educational institutions.

In November 2000, as bond counsel we successfully argued a landmark constitutional case at the Supreme Court of Virginia validating the use of tax-exempt bond financing for Regent University, a Christian graduate university in Virginia. Virginia's highest court held that, notwithstanding Regent's religious perspective, it was eligible to benefit from tax-exempt bonds to be issued through the Virginia College Building Authority.

In the last seven years, we have participated in more than 100 issues for universities, colleges and private secondary schools, totaling more than $2 billion. We have served as bond counsel, underwriter's counsel, lender's counsel or school counsel on financings, including student housing financings for public and private university systems such as:

• Clemson University
• The Johns Hopkins University (Baltimore Campus)
• Medical University of South Carolina
• Morgan State University
• Norfolk State University
• University of Richmond
• Shenandoah University
• University of South Carolina
• University of Virginia
• Virginia Military Institute
• Virginia Polytechnic Institute and State University
• Winston-Salem State University
• Vanderbilt University (Tennessee)

We have served in the same capacities for liberal arts colleges and graduate schools such as:

• Bennington College (Vermont)
• Centre College (Kentucky)
• The Chicago School of Professional Psychology (Illinois)
• The Citadel (South Carolina)
• Clarke University (Massachusetts)
• Eastern Mennonite University (Virginia)
• Francis Marion University (South Carolina)
• Hood College (Maryland)
• Queens College (North Carolina)
• Randolph College (Virginia)
• Roanoke College (Virginia)
• Ursinus College (Pennsylvania)
• Winthrop University (South Carolina)

We have served as bond counsel, underwriter's counsel, lender's counsel or school counsel for private K-12 schools including:

• Annapolis Area Christian School (Maryland)
• Beth Tfiloh Dahan Community School (Maryland)
• Calvert School (Maryland)
• Charlotte Latin School (North Carolina)
• Christchurch School (Virginia)
• Episcopal High School (Virginia)
• Garrison Forest School (Maryland)
• Gonzaga College High School (District of Columbia)
• Green Hedges School (Virginia)
• Highland School (Virginia)
• The Langley School (Virginia)
• Notre Dame Preparatory School (Maryland)
• Pinecrest Academy (Georgia)
• The Potomac School (Virginia)
• Randolph-Macon Academy (Virginia)
• St. Catherine's School (Virginia)
• St. Christopher's School (Virginia)
• St. Stephen's and St. Agnes' School (Virginia)
• St. Timothy's School (Maryland)
• Woodberry Forest School (Virginia)

We have worked with many local issuers, as well as statewide issuers such as the Virginia College Building Authority, the Maryland Health and Higher Educational Facilities Authority, the North Carolina Educational Facilities Finance Agency, and the Illinois Finance Authority. We also have experience in multi-campus financings, such as transactions for the Church Schools in the Diocese of Virginia, which operates six secondary schools throughout Virginia.

Drafting and negotiating complex financings and credit structures for universities and secondary schools, including rated institutions, are also among our focuses. We have structured innovative financing techniques, including variable rate issues, letter of credit backed issues, synthetic leases, demand and "soft put" bonds, and auction reset securities.

We have undertaken numerous public and private offerings, both tax-exempt and taxable. Our experience includes resolving the particularly difficult tax issues that often arise in financing private educational facilities, including reimbursement issues and issues involving fundraising and arbitrage.