Dorsey & Whitney Public Finance: Navigating the Municipal Bond Market

Dorsey & Whitney’s Public Finance group stands as a recognized player in the municipal bond market, advising a diverse range of clients involved in the issuance, sale, and financing of public projects. Their practice encompasses a broad spectrum of sectors, reflecting the varied needs of state and local governments, healthcare institutions, educational organizations, and other entities vital to public infrastructure and services.

The firm represents issuers, underwriters, credit enhancers, and borrowers, providing comprehensive legal counsel throughout the entire bond lifecycle. For issuers, this includes guidance on structuring bond offerings, ensuring compliance with relevant federal and state laws and regulations, and navigating the complexities of tax-exempt financing. They assist in drafting official statements, bond purchase agreements, and other crucial documents necessary for a successful bond issuance.

On the underwriter side, Dorsey & Whitney provides crucial due diligence support, helping firms assess the creditworthiness and legal soundness of proposed bond issues. They analyze offering documents, identify potential risks, and provide opinions on the legality and enforceability of the bonds. This expertise is crucial for underwriters to make informed investment decisions and protect their interests.

Dorsey & Whitney’s involvement extends beyond traditional general obligation bonds. They possess experience in a variety of specialized financings, including revenue bonds supported by specific project revenues, such as those from transportation, utilities, and healthcare facilities. They also navigate the intricacies of tax increment financing (TIF), a mechanism used to finance development projects by leveraging future tax revenues generated by those projects. The team’s capabilities cover private activity bonds (PABs), which provide tax-exempt financing for projects that benefit private entities, as well as conduit financings where a public entity issues bonds on behalf of a private borrower.

A key strength of the Dorsey & Whitney Public Finance group lies in its deep understanding of the regulatory landscape governing the municipal bond market. They stay abreast of changes in federal tax law, SEC regulations, and state statutes that impact the issuance and trading of municipal securities. This proactive approach allows them to provide timely and accurate advice, enabling clients to navigate evolving legal requirements and minimize potential risks.

In addition to transactional work, the firm offers counsel on post-issuance compliance matters. This includes advising issuers on their continuing disclosure obligations under SEC Rule 15c2-12, which requires them to provide ongoing financial and operating information to investors. They also assist with bond workouts and restructurings when issuers face financial difficulties.

Dorsey & Whitney’s Public Finance practice is often characterized by its collaborative approach. They work closely with other specialists within the firm, such as tax lawyers, real estate attorneys, and environmental law experts, to provide comprehensive and integrated legal solutions. This holistic approach ensures that all aspects of a financing are carefully considered, leading to successful outcomes for their clients.