HJ Sims Successfully Closes on $15.625m Series 2022A Bonds for Utah Public Charter School, Canyon Grove Academy
“HJ Sims and the entire financing team made purchasing our building at Canyon Grove Academy seem effortless. When problems arose, which they inevitably do, they were solved efficiently and effectively. If I were to do it again I would absolutely choose the same team.”
– Kim Goates, Superintendent, Canyon Grove Academy
Quail Run Primary School Foundation, dba Canyon Grove Academy, is a public charter school educating roughly 650 students in Pleasant Grove, UT. Offers individualized learning plans for each student and offers hybrid learning through digital and non-digital, synchronous and asynchronous, both on-campus and off-campus. Its program centers multi-sensory learning and environmental responsibility, making the most of its six-acre property that includes gardens, animals, and pastures. The school is currently located on one campus and serves grades K-8.
The Series 2022A tax-exempt Charter School Revenue Bonds provided funds for Canyon Grove Academy to purchase the existing facility that it has been leasing for several years. Total bond proceeds of $15,625,000 were used for the acquisition of the facility at a purchase price of $14.7 million, fund a debt service reserve fund and a repair and replacement fund, and pay for costs of issuance. The bonds were structured with a 10-year final maturity based on a 33-year amortization, and with a 5-year call option at a 100.25% redemption price.
HJ Sims worked with the school’s financial advisor, RoundTable Funding, to identify an investor that could provide certainty of execution at a locked-in rate given surging yields in a rocky market, and that could offer the flexible terms Canyon Grove Academy sought. Canyon Grove ultimately received an attractive term sheet from an investor willing to provide the entire amount of bonds needed for the lease buyout, at terms that would keep the annual debt service burden at 17% or less. The tax-exempt bonds had a coupon and yield of 5.65% with an optional call in 5 years at 100.25%.
On September 30, 2022, HJ Sims closed on the $15.625 million Series 2022A Bonds. Canyon Grove Academy now owns its school facility and full six-acre property, which will continue to provide educational space for K-8 students.
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