Buck Financial Blog

Buck Financial finished its 18th year in 2018 by closing thirteen (13) charter school transactions totaling almost $500 million.  In finishing our 18th year, I guess that means Buck Financial has finally grown up, so I suppose I should probably start acting like an adult.  (There is always a catch!  On the other hand, it might mean Friday happy hours at Buck Financial from now on).  Since our inception, Buck Financial has completed over 150 charter school transactions totaling over $3.7 billion (with a “B”).  Over just the last two years, Buck Financial has completed over 30 charter school financings totaling almost $1.2 billion. Who knew getting older could be so much fun?

The total amount of deals for 2018 was bested only twice: in 2017, which was (favorably) impacted by the proposed tax reform and the acceleration into 2017 of deals originally planned for 2018; and in 2014 (for reasons of which I have no clue).  Of these 13 transactions, eight (8) were tax-exempt bond issues, four were bank or CDFI senior-sub deals, and one was a Qualified School Construction Bond remarketing.  These transactions were completed on behalf of ten (10) different organizations, eight (8) of which were repeat clients of Buck Financial.  That last point is something I’m particularly proud of because it’s a testament to the quality of service and the creativity of financing solutions that Buck Financial endeavors to provide.  It also reflects the alignment of my firm’s interests with those of our clients: Buck Financial will work with you to assess the best financing alternative for your situation, and then implement that strategy.  Lastly, I think it is also a demonstration of the quality of so many of the charter schools we are privileged to work for.

So, if you are a charter school in need of a facility financing, and you would like work with a firm that will analyze ALL your options versus selling you the one product a firm offers, then please give a ring.  I would be happy to help.  In the meantime, best wishes to you for 2019.

In December 2018, Benjamin Franklin Charter School – Queen Creek issued $72,330,000 in tax-exempt and taxable bonds through the Maricopa County (AZ) IDA.  The purpose of the financing was to allow BFCS – QC to acquire certain assets from a for-profit charter school entity, Benjamin Franklin Charter School (BFCS).

BFCS had been in operation for 24 years, since 1995.  It had leased four campuses which had been financed and built by the for-profit charter holder.  Those campuses’ enrollment now totals just over 3,000 students, and are comprised of three K-6 campuses totaling about 2,000 students, and one 7-12 campus totaling just over 1,000 students, all located in the southeast Phoenix metropolitan area.  This financing allowed BFCS-QC to acquire those campuses, and fund construction of a new performing arts facility at the high school.  Upon the closing of the transaction, the charter contract formerly held by the for-profit was transferred to BFCS-QC as approved by the AZ State Board for Charter Schools.  Virtually all school leadership and all the teaching staff will remain with the new non-profit: continuity of operations was a key component of this transaction, given the successful 24-year operating history of the schools.  BFCS has historically maintained A ratings under the AZ A-F Accountability Grades system, which is why continuity was so important to the transaction.

Buck Financial served as Financial Advisor on the transaction.  Robert W. Baird served as underwriter, Squire Patton Boggs LLP served as underwriter’s counsel, and Engelman Berger, P.C. served as bond counsel.  Congratulations to the students, families and staff at BFCS-QC!  As the saying goes: “plus ça change plus c’est la même chose.”