In June 2020, in only its sixth year of operation, Great Hearts America – Texas completed its second bond issue enhanced by the Texas Bond Guarantee Program under the Permanent School Fund (PSF). Its first issue was completed in the summer of 2019. To qualify, a bond issue must have received an investment grade rating from a nationally recognized rating agency. GHAT’s Baa3 rating from Moody’s Investors Service was confirmed earlier in June, which then qualified this second issue for a Aaa rating based upon the PSF.
GHAT will use the proceeds of the $30,665,000 issue to fund two major projects: 1) the construction of the Phase II of their Western Hills campus, consisting of a 40,000 sq. ft. upper school classroom, and a 15,000 sq. ft. gymnasium; and 2) the purchase of land and construction of Phase I of their second campus in Ft. Worth, consisting of about 55,000 sq. ft. which will hold just under 1,100 students in grades K-6.
Through the 2020 fiscal year, GHAT operated eight schools on seven campuses in the San Antonio and greater Dallas-Ft. Worth metropolitan areas. GHAT will open two more schools for the fiscal 2021 school year, with these two schools constructed with proceeds of the 2019 PSF issue. When construction using the 2020 proceeds is completed, GHAT will operate twelve schools and ultimately educate over 8,700 students through the 2025 school year.
GHAT utilizes a very similar curriculum as its sister organization in Arizona, which was begun in 1996. The curriculum focuses on classic American liberal arts educational traditions, including classes in Latin, a rigorous reading program, a requirement that each student participate in the Arts, and the requirement of a senior Thesis, defended in front of a faculty panel, prior to graduation. GHAT believes that the highest goal of an education is to be good – intellectually and morally. GHAT currently has a waiting list of over 6,300 students throughout the Texas network, testifying to the demand for such a rigorous, college-prep curriculum.
Buck Financial Advisors LLC served as municipal advisor on the transaction. Robert W. Baird Inc. served as underwriter, McCall, Parkhurst, and Horton LLP as bond counsel, Quarles & Brady LLP as underwriter’s counsel, and Warren Charter Law as borrower’s counsel. The issuer was the Arlington Higher Education Finance Corporation. This was the same team which served GHAT on its 2019 bond issue.
Congratulations to the students, families, and staff of GHAT on its second PSF issue. To grow as quickly as they are while still qualifying for an investment grade rating in only their fifth year, and maintaining it this year, is truly an accomplishment.