District of Columbia
Resources for the Future
2021 Taxable Loan
Wye River Group served as RFF’s independent financial advisor in connection with an interest rate swap to hedge its 2021 Taxable Loan.
Founded in 1952, Resources for the Future (RFF) is an independent, nonpartisan organization that conducts rigorous economic research and analysis to help leaders make better decisions and craft smarter policies about natural resources and the environment. RFF was the first think tank devoted exclusively to natural resource and environmental issues and helped create the field of environmental and natural resource economics. It has provided decision makers with the tools to improve the way policy choices are made, strengthening both the environment and the economy. Although RFF is located in Washington, DC, its research scope comprises programs in nations around the world.
Wye River Group served as RFF’s financial advisor in connection with a conventional fixed rate tax-exempt bond financing in 2017. In 2021, a portion of that financing was converted to an underlying variable rate taxable loan hedged by a floating-to-fixed rate interest rate swap. Wye River served as RFF’s swap advisor in connection with the 2021 synthetic fixed rate loan. The specific services provided by Wye River included (1) evaluation of interest rate hedging alternatives and recommendations from RFF’s lender, (2) negotiation of the lender’s fees based on the structure and terms of the swap and the creditworthiness of the counterparties, (3) management of all swap-related documentation (ISDA Schedule, Trade Confirmation, Dodd-Frank Forms and Certificates, etc.), (4) assistance with RFF’s Legal Entity Identifier (LEI) registration and (5) execution and settlement of the interest rate swap.
RFF secured a taxable fixed rate in the mid- to high-2% range for its taxable loan. Transaction costs were minimized through the use of the same parties involved in the original 2017 tax-exempt financing.