$27,130,000 EDUCATIONAL FACILITY REVENUE BONDS SERIES 2025A & 2025B | GALLUP, NM | MAY 2025
“Hózhó Academy is a growing Charter School in rural New Mexico. With the dedication, patience, and perseverance of the team at HJ Sims we were able to secure bond financing to purchase our existing property and provide a much-needed construction budget to develop our campus and provide for more students. The experts at HJ Sims stuck with us through multiple setbacks and navigated the challenging legal landscape in New Mexico to get a deal done that will truly transform our school and community.”
“When our school decided to apply for bond funding, no one in our school had the expertise to manage such a venture. By combining forces with HJ Sims, we were able to navigate the process with clear expectations, organization, and ongoing support. There would’ve been no way for us to have the successful outcome that we had without the support and guidance of HJ Sims.”
Partnered Right®
Hózhó Academy is a public charter school located in Gallup, New Mexico, serving students from PreK through 11th grade, with plans to expand to grade 12 in the 2025–26 academic year. Since its founding in 2018, the school has grown steadily, reaching full enrollment annually and maintaining a waitlist of over 200 students. Hózhó’s mission is rooted in classical education, emphasizing moral character, civic virtue, and physical wellness, and it is affiliated with Hillsdale College’s Barney Charter School Initiative. The school’s student population is more than fifty percent Native American, and the school promotes integration and celebration of Native language and culture throughout the school. The school operates two campuses and is undertaking a major expansion of its 515 Park Avenue location to accommodate continued growth and enhance student services. To support this initiative, Hózhó Academy engaged HJ Sims to structure and underwrite a financing solution that would fund the acquisition, construction, and improvement of the expanded campus.
Structured Right®
To meet Hózhó Academy’s capital needs for campus expansion and facility improvements, HJ Sims structured a two-series bond offering through the Public Finance Authority. The financing included $26,210,000 in tax-exempt Educational Facility Revenue Bonds (Series 2025A) and $920,000 in taxable Educational Facility Revenue Bonds (Series 2025B). Proceeds from the Series 2025 bonds were allocated toward acquiring and improving the 515 Park Avenue campus, including the development of a multi-sport athletics complex, infrastructure upgrades, and reimbursement of pre-development costs.
Executed Right®
The bonds were priced during the week of May 12, 2025, following a successful investor roadshow posted on May 1. Despite a very challenging market environment in the wake of newly imposed tariffs and heightened volatility, HJ Sims successfully placed the bonds with institutional investors. HJ Sims provided hands-on support throughout the process, including structuring, marketing, and closing logistics, culminating in a successful bond closing on May 29, 2025. The execution of the financing demonstrated HJ Sims’ commitment to delivering customized solutions and responsive service to its education sector clients.
Financed Right®
The financing for Hózhó Academy closed successfully on May 29, 2025, providing the school with the capital needed to expand its facilities and support long-term enrollment growth. The bonds carry a 30-year maturity and were structured to meet investor demand while aligning with the school’s financial projections and strategic goals.
Key benefits of the transaction include:
• Secured $27.13 million in total financing through Series 2025A and 2025B bonds.
• Funded the acquisition and development of the 515 Park Avenue campus, including a multi-sport athletics complex and infrastructure upgrades.
• Enabled reimbursement of pre-development costs, preserving liquidity for the school.
• Supported Hózhó’s continued growth, with projected enrollment reaching over 1,000 students by FY2030.
• Delivered a financing structure that aligns with the school’s mission and long-term sustainability.
• Allowed Hózhó to enter into a New Mexico Department of Education approved Lease Purchase Agreement, which will make the school eligible for additional grants and funding.
HJ Sims had previously partnered with Hózhó Academy on a working capital financing that provided the school with the funds necessary to complete pre-development and design work for this expansion—an innovative solution others could not have offered.
John Solarczyk
949.244.1679
Akshai Patel
602.476.4934
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