HJ Sims provides $20.825MM refinancing for multi-campus
Arizona charter school network
$20,825,000 | JUNE 2026 | PHOENIX, AZ
Partnered Right®
The Paideia Academies, Inc., (“Paideia”, “the borrower” or “the School”), an Arizona-based nonprofit charter school operator, provides K–12 educational services at two campuses in Phoenix. Founded in 2011, the organization has steadily expanded enrollment, growing to serve over 800 students in the Phoenix area. The Borrower previously accessed the tax-exempt capital markets through multiple financings, including Series 2015 and 2019 bond issuances, and a Series 2022 long-term note, to develop and enhance its educational facilities.
While necessary for the School’s development, over time the financial burden of three separate debt issuances proved to be a significant stressor, further magnified by existing operational challenges. In 2026, Paideia engaged HJ Sims to provide a comprehensive refinancing strategy. The primary objective was to refund all the outstanding prior debt obligations, streamline debt service, and position the organization for financial stability through cash flow savings.
Structured Right®
To meet Paideia’s objectives, HJ Sims structured a single-series financing consisting of $20,825,000 of Education Facility Revenue Refunding Bonds issued through the Industrial Development Authority of the City of Sierra Vista. The plan of finance was designed to fully refund the Borrower’s outstanding Series 2015, 2019, and 2022 obligations, consolidating multiple layers of debt into one streamlined capital structure. Proceeds were allocated to refinance approximately $20 million of prior debt, fund necessary reserves, and cover the associated issuance costs. The bonds were structured as a single, bullet- structure term bond maturing in 2036, priced with a 6.50% coupon to yield 6.625%, accommodating the slight discount desired by investors.
Executed Right®
HJ Sims successfully executed the Series 2026 financing within an accelerated timeline, coordinating closely with the Issuer, Borrower, and financing team to ensure a smooth and efficient process. Our senior bankers were able to complete this transaction with a targeted single-investor placement, leveraging our depth of investor relationships to find
the right financing partner for the School. Sims’ banking team was able to effectively communicate and assuage the various credit risks associated with the transaction and
ultimately negotiated a direct purchase of the entire issue by a major institutional investor.
Financed Right®
On June 24, 2026 HJ Sims successfully closed the Paideia Academies transaction, consolidating the Series 2015, 2019 and 2022 debt obligations into one streamlined series.
These restructuring efforts produced annual cash flow savings of over $50,000 annually, greatly improving the school’s liquidity as they work to stabilize their operations. Additionally, HJ Sims was able to negotiate a 3-year premium call declining to par in 2031, leaving Paideia flexibility in case of a future, favorable interest rate environment occurring ahead of the final 2036 maturity. Ultimately, through this financing, HJ Sims was able to successfully position the Paideia Academies success for both the short and long term. We are grateful to have partnered with this client and look forward to maintaining this relationship for years to come.
For more information, please contact:
Robert Nickell
214.681.0952