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Financing alternatives: Holman Capital outlines direct-lending option for Wasco capital projects
Summary
Holman Capital representatives presented a direct-lending alternative to bonds — emphasizing faster funding, tailored amortization, and potential fee savings — and answered council questions about rate resets and balloon/refinancing structures.
Holman Capital representatives presented a direct-lending model to Wasco City Council on Dec. 16 as an alternative to issuing bonds to finance capital projects.
James Loth, Holman’s director of public sector finance, said the firm provides tailored financing across municipal asset classes and can fund projects in a typical 30–45 day window. Loth said direct lending can avoid bond issuance complexity and fees and can be structured to match a city’s cash flow. Brent, Holman’s Pacific Northwest manager, and other staff walked council through illustrations comparing bonds and direct lending and described a "rate reset" approach in which multi-stage financing (for example, 10-year segments with refinancing or reset at each stage) can reduce long‑term interest expense while matching near-term cash flow.
Councilmembers pressed presenters on how the "balloon" or rate-reset mechanics work and whether refinancing risk could raise future costs; Holman said the approach is effectively a scheduled refinance at each reset period and that the city’s due diligence would model sensitivity to rising rates. Council requested the presentation materials and additional examples for review before any decision and staff indicated they would circulate the deck for follow-up questions.
The presentation was informational; no financing commitment or vote followed the presentation.
