“Northeast Ohio Classical Academy (NEOCA) has the highest level of gratitude and respect for the HJ Sims team as they guided the NEOCA Board through the “ups and downs” of closing the NEOCA $11,255,000 bond deal on time, 12/28/2023. Each step in the process was explained and implemented with the highest degree of professionalism and attention to detail always paying close attention to the Mission and guiding principles of our school. NEOCA looks forward to a strong and lasting relationship with HJ Sims in the future.”
– Robert E. Anthony, NEOCA Founding Board President
Partnered Right®
The Northeast Ohio Classical Academy (“NEOCA”) is a new public charter school opening in fall 2024 in Akron, Ohio. Akron is about 40 miles south of Cleveland and the county seat of Summit County.
NEOCA was granted a 5-year charter by its authorizer, St. Aloysius, and plans to welcome 350 students in Kindergarten through 5th grade in its first year. Thereafter, it will grow one grade per year until it serves students in Kindergarten through 12th grade.
NEOCA will follow the Barney Charter School Initiative curriculum, created by Hillsdale College.
Structured Right®
The Series 2023 Bond proceeds of $11.3 million were used to fund the purchase and renovation of a 36,000-square-foot building. Once renovation is complete the building will provide 14 classrooms, office space, special education classrooms, and common space.
The bonds were structured with a 10-year interest-only maturity, short call period, ~$800,000 of capitalized interest, and a debt service reserve fund to be funded post-closing from school operating revenues.
Executed Right®
HJ Sims connected NEOCA with a single investor to fund the Series 2023 bonds, allowing for the favorable structuring noted above.
The school received a short call period, the ability to fund the debt-service reserve fund post-closing, capitalized interest, and the option to borrow additional working capital at set terms, if needed.
The call option at 102%, starting 06/28/2026 and declining to 101% starting 12/28/2026, will allow NEOCA to refinance the Series 2023 Bonds and secure new money for a second phase of construction. After 48 months the call option rises to 103% of par, incentivizing the school to refinance into favorable long-term financing within four years.
Financed Right®
On December 28, 2023, HJ Sims successfully closed on the $11.3 million Series 2023 Bonds.
The Northeast Ohio Classical Academy will move into its new campus and start educating students at the start of the 2024-25 school year.
For more information, please contact:
Robert Nickell
214.681.0952