N.C. Capital Facilities Finance Agency Quarterly Report

North Carolina Capital Facilities Finance Agency Changes Bring Results

One year into a revitalization of the North Carolina Capital Facilities Finance Agency (NCCFFA) there have been strong results. This includes multiple projects that previously would have gone out of state for financing, now keeping their dollars in North Carolina.

NCCFFA is a conduit financing authority authorized by state and federal laws to issue bonds on behalf of nonprofits such as colleges, universities, private schools, charter schools and others. The bonds issued are tax-exempt and offer the nonprofit borrowers lower interest costs.

"North Carolina is cosistently one of the best places to do business, and there is no reason we shouldn't be the best place to finance your project," said Treasurer Brad Briner, who chairs the NCCFFA. "In the first year of our revamp, we have three borrowers, who previously used out-of-state issuers, now keep their money closer to home."

NCCFFA Projects Approved since March 2025

• Pine Lane Preparatory - $35,319,000

NCCFFA approved $35,319,000 in funding for the Pine Lake Preparatory, Inc. Project via refunding and revenue bonds. Refinancing managed to save Pine Lake ~$175,000 per year, even with the ~$10 million in new debt for construction on their campus. First Tryon Advisors conducted an assessment of the school's credit quality and developed a plan of finance for the project.

• Endeavor Charter School - $14,516,000

NCCFFA approved $14,516,000 in funding for the Endeavor Charter School (ECS). ECS's financing was structured with a 4% fixed rate and a 20 or more years term (with a 30-year amortization).

• Goodwill - $30,850,000

NCCFFA approved $30,850,000 in funding for Goodwill Industries of Central North Carolina. Triad Goodwill's financing was structured with a 12-year term, 30-year amortization, and a conventional fixed rate (no interest rate swap) in the low-4% range.

Also approved:

• Montessori School - $4,900,481 (bonds bought by Pinnacle Bank)
• Woodlawn School - $5,078,000 (bonds bought by First-Citizens Bank & Trust Company/First Tryon Advisors was the financial advisor)

"First Tryon Advisors is proud to be the financial advisor to 4 of the 5 bond issues through the North Carolina Capital Facilities Finance Agency in the past year. The Agency's staff was professional, easy to work with, and made the process easy to navigate for our clients. Clients were quick to notice and appreciate recent changes and added flexibility implemented by the Agency."

- Alexander F. Mueller
Director, First Tryon Advisors

Background

Over the past decade, a NCCFFA policy limited the length of bond maturities to terms lower than those allowed by law. In March of 2025, the agency adopted revised guidelines for the final maturities of agency-issued conduit bonds. The existing guidelines called for final bond maturities of 20 years for revenue-producing projects, 25 years under certain defined circumstances, or more than 25 years under extraordinary circumstances. The new guidelines allow for final bond maturities of up to 40 years, in accordance with the maximum final maturity allowed by statute and based on agency staff's recommendation.

In the 2025 calendar year, four projects were financed by NCCFFA - up from zero projects in 2024.

*In addition, one project has already been financed in 2026, with several more in the pipeline.

About NCCFFA

The North Carolina Capital Facilities Finance Agency provides the benefits of tax-exempt financing to nonprofit institutions providing elementary and secondary education, private institutions of higher education, and various other entities for special purpose projects serving a public interest.​​

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