“Prescott Valley Charter School set out in the fall of 2023 to close in early January 2024 on a very critical bond offering for the future of our campus. Sadly, the team that we chose as underwriters in the fall of 2023 was not able to get the deal across the finish line. This was very detrimental to our school! However, in steps HJ Sims… Not only were they able to get us across the finish line they were able to meet a quick deadline for a purchase option so that we could secure our facilities for our students and families for many years to come! It is the teamwork at HJ Sims that made this possible, and the team at PVCS couldn’t be more satisfied with our experience!”
– Monika Fuller, School Director
Partnered Right®
Prescott Valley Charter School (“PVCS”) is a public charter school located in Prescott Valley, Arizona. It serves 423 students across grades K to 9 as of the current school year. It will ultimately grow to serve 900 students in grades kindergarten to 12 by the 2028-2029 school year. The Arizona State Board of Education renewed its charter in 2015 for a 20-year term.
Structured Right®
The Series 2024 bonds allowed PVCS to purchase and renovate its leased facilities at the Lorna Lane Campus. These bonds facilitated PVCS’s transition from leased facilities to ownership. While the purchase of the Florentine Campus was financed separately, all school revenues will be pledged under the bond indenture for the Series 2024 Bonds. With total bond proceeds of approximately $11.6 million, PVCS utilized these funds to acquire the Lorna Lane Campus for $8 million, undertake necessary repairs and renovations, establish a debt service reserve fund, cover capitalized interest, and manage issuance costs. Structured with a 40-year final maturity, the bonds were designed to ensure the lowest annual debt service, complemented by a 7-year call option at a 102% redemption price.
Executed Right®
Throughout the pricing phase, the Sims institutional sales team actively engaged with over 50 institutional investors, ultimately securing participation from 5 of these entities. Additionally, PVCS attracted substantial interest from HJ Sims’ exclusive Private Wealth Management Group, securing over $300,000 in capital through retail channels. The tax-exempt bonds offered coupons spanning from 6.000% to 7.375%, paired with corresponding yields ranging from 6.00% to 7.50%, reflecting the diverse range of investor preferences and market conditions.
Financed Right®
On March 21, 2024, HJ Sims successfully closed the $11.71 million Series 2024 Bonds, with the majority of the issue purchased by five institutional bond funds. Additionally, approximately $300,000 of the bonds were acquired by HJ Sims’ Private Wealth Management clients.
For more information, please contact:
John Solarczyk
949.244.1679
Akshai Patel
602.476.4934