“As a startup charter school in California, year one cash flow is always a huge challenge. The state doesn’t send funds until close to October, months after school has started and we needed to hire and pay our teaching staff, purchase curriculum, setup classrooms, pay rent, and so much more. Thankfully, HJ Sims was willing to partner with us to ensure our school can launch on time and with the resources we need to do it well.
The HJ Sims team is not only experienced and thorough, but they are vested in the success of the charter school movement. Rob, Kaiti, and Kyle worked exceptionally hard to ensure that our loan closed just before we had to write our next payroll check. Because of them, our startup plans did not skip a beat.”
– Gary Davis
Executive Director
Partnered Right®
Corvian Community School, Inc. (“Corvian”) is a nonprofit corporation that operates a K through 12 charter school in Charlotte, NC. Opened in the fall of 2012, the charter was recently renewed for 10 years and is valid through the 2031-32 school year. It served 1,287 students as of the 2022-23 school year.
Corvian serves grades 5 through 8 and 9 through 12 in its middle and high school facilities, respectively, located on its flagship campus. Corvian also offers a state-of-the-art athletic facility at this flagship campus. Grades K-4 are currently served in a temporary leased facility. With the Series 2023 Bonds Corvian intends to build a new elementary school facility collocated on the flagship campus with its middle and high schools.
Structured Right®
The Series 2023A tax-exempt and Series 2023B taxable Education Revenue Bonds will enable Corvian to construct a new permanent elementary school facility for its students in grades K through 4. Total bond proceeds of $19,655,000 were used to finance the construction, fund a debt service reserve fund, and pay for costs of issuance. Payments for the Series 2023 bonds were wrapped around the debt service payments of previously issued 2017 and 2019 bonds, allowing for lower annual aggregate debt service that is level through final maturity. The bonds were structured with a 30-year final maturity and a 10-year par call option.
Executed Right®
HJ Sims worked closely with the school to lead efforts to obtain consent from existing bondholders to issue the new bonds and worked with them to issue the new bonds via a limited offering. The Series 2023 Bonds were offered via limited offering and ultimately attracted three unique institutional investors. The tax-exempt bonds had 5.875% to 6.25% coupons, accompanied by yields ranging from 6.00% to 6.50%. The final 30-year term bond had a 6.25% coupon at a yield of 6.50%.
Financed Right®
On June 7, 2023, HJ Sims closed on the $19,655,000 Series 2023 Bonds with 100% of bonds purchased by existing bondholders. Corvian is now underway with its new elementary school project with an expected completion of July 2024.
For more information, please contact:
Rich Harmon
614.506.1976