ARBITRAGE REBATE SERVICES

We have provided rebate services to issuers located throughout the country and have performed our calculations under federal tax code interpretations as set forth in Arbitrage Certificates prepared by many of the country’s leading bond counsel firms. 

In the past three years alone we have provided arbitrage rebate computation services on a variety of bond structures including: fixed rate issues, variable rate issues, construction issues, refunding issues, multifamily issues and single family issues.  We have extensive experience dealing with complicating factors such as:  up front letter of credit fees, transferred proceeds, universal cap considerations, commingled funds, deep discount term bonds, and callable premium bonds.  Because of our role as the leading firm of verification agents in the country, we are continually aware of new issues that have an impact on arbitrage rebate compliance.  

We recognize that paying a professional CPA firm to compute the amount of rebatable arbitrage associated with an issue of tax-exempt bonds is viewed by issuers as a necessary compliance expense, one that frequently was not contemplated by the issuer at the time the bonds were sold.   Therefore, we have developed a variable pricing structure which passes along any savings we realize by preparing reports less frequently than annually or by performing annual calculations that comprise of the issuance of a brief letter summarizing the issue’s rebate liability, followed at the end of each fifth year with a formal report.  We have recommended that certain issuers not spend money on rebate computations or curtail reporting to minimize cost where appropriate.  It is our practice to recommend the most cost-effective approach to clients, which often results in lower fees to us than if we blindly performed the work requested.

Frequently, when performing a rebate calculation, we are able to discover some characteristic of the transaction that, if exploited in a specific manner, would result in either a reduced rebate liability, improved future earnings on existing assets, or an immediate cash payment to the issuer.  Many of our engagements are performed at the request of financial advisors with whom we consult regularly on rebate planning issues. 

We are committed to providing high quality service on each engagement.  Each rebate computation is prepared using customized spreadsheet software and all of our computations are reviewed, in detail, by at least one of our principals.  

Our combination of knowledge, technical competency, accuracy, and sensitivity to the cost of our services relative to the value received by the issuer as a result of our services results in arbitrage rebate consultation and compliance services that our clients consider to be the best in the industry.