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FOR IMMEDIATE RELEASE
Contact: Frank Lennon CARRIER MUSEUM PROJECT RECEIVES $5 MILLION INVESTMENT BANKING COMMITMENT FROM GREENWICH PARTNERS LLC The USS Saratoga Museum Foundation, Inc., has entered into an investment banking relationship to provide $5 million in financing for the creation of a non-profit Air, Land & Sea Heritage and Technology Park as part of the Quonset-Davisville development. Jim Runko, Senior Vice President of Greenwich Partners LLC, released a letter this morning confirming his firm's willingness to proceed, subject to the Foundation's ability to secure the remaining $2.5 million of the $7.5 million required for the project to open. In an unrelated transaction, Merrill Lynch Trust Company has signed on as the project's first national corporate partner, committing to assist with the fund raising effort. Congressman Bob Weygand, Honorary Co-chairman of the Foundation's Advisory Council, joined Foundation president Frank Lennon in announcing details and conditions of these commitments on Wednesday during a tour of the Quonset Air Museum, one of the major beneficiaries of the Park development. Of the estimated $7.5 million start-up costs, $1 million will be allocated to renovation of the former navy base paint hangar which now houses the air museum's collection. Lennon says: "This commitment to provide financing from a recognized investment banking firm is an expression of confidence by the financial community in the viability of this project. "Coupled with the Merrill Lynch name and a $2 million fund raising pledge from the USS Saratoga Reunion Association, this financing will go a long way toward securing the funds needed to complete the project in time for our projected July 4, 2000 Grand Opening date," Lennon continued. This financing contemplates issuance of unrated bonds which do not require a state guarantee or debt insurance. However, if the Rhode Island Industrial-Recreational Building Authority or a similar agency is willing to provide debt insurance the bonds could be rated, thus lowering the total cost of the project through lower interest rates. Greenwich Partners LLC is a securities firm operating exclusively in the municipal bond market, dedicated to selling, trading and underwriting municipal bonds. The firm has public finance offices in Washington DC, Albany, NY, Hartford, CT and Bernardsville, NJ as well as at its Greenwich headquarters. The firm works closely with state and local issuers and economic/industrial development agencies, and is one of a handful of firms nationwide that offers clients the opportunity to access low-cost financing through a tax exempt, unrated, enhanced bond structure. The firm's contribution to the municipal marketplace is enhanced by an industry-wide recognition of the firm's expertise in a number of specific areas, including hospital and health care, housing, airport and aviation-related projects, educational and not-for-profit institutions, recreational facilities and cultural institutions to include museums. "Undertaking challenging economic development projects is our forte," said Runko. "Based on our experience with similar projects elsewhere, and assuming the market demand studies and financial projections are valid, we are confident this is a bondable project," he concluded. The financing is, of course, conditioned upon finalization of the market demand and financial feasibility studies. "We welcome fulfillment of that condition," said Lennon. "We worked very closely with The Office of Thomas J. Martin [Cambridge, MA researchers] in preparation of the preliminary studies. Greenwich Partners has collaborated previously with Tom Martin on other projects, which makes our task that much easier," Lennon concluded. The Foundation plans to launch its campaign to raise the additional $2.5 million as soon as the Rhode Island Economic Development Corporation gives the green light for access to the carrier pier. "EDC's priority, and rightfully so, is resolution of the container port issue," said Lennon. "We fully understand that no final commitments to us or others can be made until the port decisions are made. At the same time, we have had some very productive discussions with EDC staff over the last couple of weeks, particularly with Quonset Operations Director Ron Patalano," said Lennon. "These discussions are ongoing, and they are moving in the right direction," he concluded. Saratoga project leaders are also confident about their ability to raise the $2.5 million balance. The USS Saratoga Reunion Association committed to a fund raising goal of $2 million at their annual convention last September. Adding credibility to the Association's pledge, they already raised that money once before--in 1994 and 1995 during the failed attempt to establish a Saratoga museum in Jacksonville. "A majority of those pledges came from shipmates who wanted to see Sara saved as a museum, and the location was irrelevant," said Brad Senter, President of the Association. "We're confident we'll be able to renew many of the old pledges, and also generate new ones. This is very exciting for us," he concluded. Adding the Merrill Lynch name to the mix also enhances the project's credibility as it launches its $2.5 million campaign. Jo Ann Englehardt, President and CEO of Merrill Lynch Trust Company (Florida), said she was "excited about our potential involvement with the Foundation and Historic Park." She pointed to Merrill Lynch Trust's "significant resources, especially in the financial planning area". In conclusion, Lennon stated, "It's a lot easier to go into a fund raising effort saying, 'OK, we have the first $5 million, and we only need $2.5 million', or even better, 'We have $7 million, and we're only looking for the last $500,000'." ADDITIONAL CONTACTS:
Greenwich Partners, LLC
USS Saratoga Reunion Association
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