Buck Financial Blog

In July 2021, BASIS Texas Charter Schools closed a $65 million financing to construct Phase I of three new schools in Benbrook, Pflugerville, and San Antonio.  This financing is designed to allow it to be easily taken out when two other financings that BTX previously entered into will be callable.  By that time, BTX should be well positioned to enter into the Texas Bond Guarantee Program under the Permanent School Fund.

In 2017, BTX became a member of an obligated group financing for its then-existing campuses in Texas, which obligations are not callable until 2026.  In 2020, BTX issued direct obligations that are not callable until 2025.  The goal of the 2021 financing was to arrange cost-effective, 100% financing without “kicking the can” down the road w/r/t redemption so that BTX can refinance all obligations into the PSF when available as easily and efficiently as possible.

As financial advisor to BTX, Buck Financial worked with Morgan Stanley Bank to structure a 5-year tax-exempt financing which would provide all the necessary funds for construction and allow BTX to refinance the 2021 financing at par earlier than the other financings would likely or legally be considered for refinancing.  BTX will construct three new campuses to add to its 6 existing schools, and expects to serve approximately 3.700 students in Fall 2022 across the Texas network.  The goal is to finance BTX’s growth over the next several years with similarly-structured financings until such time as the PSF can become a reality.

BTX is affiliated with the BASIS network of charter schools which operate in Arizona, Baton Rouge, and Washington, DC in addition to Texas.  The network goes back to 1996 when the first BASIS schools was founded in Tucson, Arizona, and currently educates over 20,000 students network wide.  BTX is managed by BASIS Educational Group out of Phoenix, Arizona.

Shulman, Lopez, Hoffer & Adelstein, LLP served as bond counsel and borrower counsel, Hunton Andrews Kurth served as special tax counsel, BOK Financial as Trustee, and Coldwater Ventures serves as Owner’s Representative to BTX.  The financing was issued through the Arlington Higher Education Finance Corporation.  Orrick Herrington & Sutcliffe served as counsel to the purchaser.  Congratulations to the students and families of BASIS Texas!

In July 2021, IPS Enterprises Inc. closed on the financings to acquire and construct IDEA Florida’s second campus in Jacksonville.  This $23 million financing will construct Phase I of a K-12 school on the 30-acre campus housing about 1,500 students.   The school will be knows as River Bluff, and was purchased from Jacksonville University and is adjacent to JU.  It will also eventually offer a soccer field, along with a gymnasium.

Like other Florida financings of IDEA, this project is part of the State’s Schools of Hope program, which provides both facility and operational funding for qualified organizations like IDEA.  Of the $23 million in funding, about $8 million was subordinate debt provided by the Florida Dept. of Education and administered by Building Hope.  The roughly $15 million in senior debt was provided by PNC Bank.

River Bluff will open in fall of 2022 with 500 students in grades K-2 and 6, along with IDEA Florida’s campus on Basset Road which closed earlier this year.  IDEA Florida has also funded two campuses in Tampa which are scheduled to open this fall, and will soon be financing a third campus in Tampa later this year, for opening Fall 2022, and through the 2027 school year IDEA Florida seeks to operate a total of sixteen schools in Tampa and Jacksonville.

Buck Financial Advisors served as financial advisor to IPS Enterprises, Inc., who will own the property and lease it to IDEA Florida.  Hunton Andrews Kurth served as borrower’s counsel to IPS.  Orrick Herrington & Sutcliffe served as counsel to PNC Bank, and Kutak Rock served as counsel to Building Hope.  InSite EFS provided real estate location and brokerage services, and PMSI is serving as project manager.  Congratulations to the students and families in the Arlington area of Jacksonville on having another high quality K-12 option.