HJ Sims Successfully Closes on $25 million Series 2022A & B Bonds for UT-based Public Charter School
“John Hancock Charter School specializes in high-quality K-8 public education. At the beginning of the capital financing process, we weren’t really certain how “bonding” actually worked. Having a knowledgeable, experienced underwriting partner was crucial to successfully securing practical capital for our new campus building project.
With existing market challenges, the need to maximize outcome while minimizing risk was essential for a positive result. HJ Sims knew exactly how to effectively navigate the complexities of current market volatility.
HJ Sims worked seamlessly with our financial advisor to find the right private capital investor for our unique development project. Securing a 6.25% coupon rate during volatile market fluctuations was extraordinary.
HJ Sims has been an outstanding partner in John Hancock Charter School’s dream to provide high-quality K-8 public education to 900+ additional Utah students.
Choosing HJ Sims was the right move for John Hancock Charter School’s underwriting needs—thanks Rob Nickell, Kaiti Wang and the HJ Sims Team!”
– Craig Frank, Business Administrator, John Hancock Charter School
John Hancock Charter School is a K-8 public charter school educating around 190 students in Pleasant Grove, UT. The school has outperformed its local school district and the state average in all subjects in the two most recent years with available state testing data.
The school uses the Core Knowledge Sequence developed by Dr. E.D. Hirsch Jr. Teachers have the freedom to develop child-centered methods of teaching.
The school opened in the fall of 2003, receiving its charter from the Utah State Charter School Board. The planned project is for the acquisition and construction of a second, new campus in Eagle Mountain, UT with seats for 900 students. With the new campus, the school is expecting combined enrollment to increase to almost 1,100 by the 2026-27 school year.
The Series 2022 Charter School Revenue Bonds provided funds for the school to acquire and construct new charter school facilities in Eagle Mountain, UT.
Total bond proceeds of $25,000,000 were used for the acquisition and construction of the facilities, fund a debt service reserve fund and a capitalized interest fund, and pay for costs of issuance. The bonds were structured with a 5-year final maturity and a 3-year call option at a 100% redemption price.
HJ Sims worked with the school’s financial advisor 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 John Hancock Charter School sought. The school ultimately received an attractive term sheet from an investor willing to provide the entire amount of bonds needed for project, with a flexible call option in 3 years. The tax-exempt bonds have a coupon of 6.25%.
On November 14, 2022, HJ Sims closed on the $25 million Series 2022A&B Bonds.
John Hancock Charter School now has the funds necessary to complete construction of its second campus, allowing the school to continue to expand and provide quality education to 900 more students each year in Eagle Mountain, UT.
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