In November 2017, GreatHearts Arizona offered its second bond issue enhanced by the Arizona Public School Credit Enhancement Program. This program allows the bond issues carrying the enhancement to receive a AA- rating by Standard & Poor’s. This issue, totaling $19.5 million, will be the second time that GreatHearts has used the program. The funds will allow GreatHearts to acquire and renovate a campus for its Archway Classical Academy – Scottsdale, providing over 600 new seats for that academy. Archway Scottsdale is one of the highest performing elementary schools in the state, and now will be located adjacent to their Scottsdale Preparatory Academy, which serves older grades in the Scottsdale area. Earlier in 2017 GreatHearts issued about $34 million in bonds enhanced by the State’s program for expansion of their Maryvale and Veritas campuses, which added about 1,000 seats to the network. GreatHearts carries a BBB- underlying rating, which was affirmed with this issue, and to date is the only investment grade organization enhanced under the State’s program. Buck Financial has served as financial adviser to GreatHearts since 2014, and with this issue will have assisted the Arizona network with approximately $180 million in tax-exempt bonds. GreatHearts provides a classical liberal arts education with the goal of developing great-hearted leaders, and we are proud to be able to work with such a high-quality organization.
Buck Financial Blog
Archive for October, 2017
Uplift Education Issues Total of $100 Million In PSF Debt
In the summer of 2017, Uplift Education, Dallas, Texas, closed two separate issues that represent its first foray into the AAA-rated municipal market. In May 2017, Uplift issued about $75 million in bonds to refinance its outstanding 2010 bonds, as well as fund the expansion of two existing campuses in the Dallas area. In August 2017, Uplift issued another approximately $25 million to fund the purchase and construction of its first campus in Fort Worth. Uplift’s had previously issued about $300 million in unenhanced issues which have always been well-received by the municipal market. This time both issues were enhanced by the Texas PSF, which allows the bonds to achieve a AAA-rating. Buck Financial has served as financial adviser to Uplift since 2010, and congratulates Uplift and the families and students they do such a great job of serving.
Buck Financial Assists Two Networks To Gain Rating Upgrades
Recently, Buck Financial worked with the growing CMOs KIPP LA Schools and IDEA Public Schools (TX) with tax-exempt bond financings to finance that growth.
KIPP LA Schools issued its third bond issue in late summer 2017 to fund $46 million in projects in greater Los Angeles, having first issued tax-exempt bonds in 2014. KIPP LA Schools’ initial rating in 2014 was BB+, which was increased to BBB- in 2015 with their second issuance. The rating for the 2017 issue was increased to BBB from BBB-, its second straight rating increase.
IDEA Public Schools issued the largest ever tax-exempt bond issue for a charter school in August 2017. IDEA’s underlying (e.g. unenhanced) rating was increased to BBB+ from its previous rating of BBB, making IDEA one of the top rated charter school organizations in the country. Only had handful of charter schools have earned such a high underlying rating.
Congratulations to both these highly-deserving organizations!
Buck Financial Helps Two CMOs Expand Across State Lines
In August 2017, Buck Financial assisted two high-performing CMOs to finance their expansion across state lines. GreatHearts America Texas closed its third transaction to finance its expansion into Texas. GreatHearts borrowed a total of $12.5 million to finance phase I of its third campus in San Antonio. IDEA Public Schools Enterprises closed its first out-of-state transaction to finance its expansion into Baton Rouge, Louisiana, a $17 million financing to finance phase I of the Cortana campus. Both financings used a combination of senior bank debt and subordinate debt and required very little if any cash from the schools. Buck Financial is at the forefront of helping high-performing CMOs continue their missions to bring quality education to more and more families, especially when they move into different states where their financial resources are fewer to begin with. We are pleased to continue our relationship with these two excellent organizations.