Buck Financial Blog

As of December 2023, Buck Financial Advisors has completed over $6 billion in charter school financings, exceeding 225 individual transactions in 18 different states.  This is a little more than two years since Buck Financial crossed the $5 billion mark in 2021.  Buck Financial was formed in 2001 to specialize in charter school facility finance.

Sources of financing used by Buck Financial Advisors has varied from fixed-rate, fully amortizing bonds to New Markets Tax Credits, bank loans, private loans, CDFI and other mission-driven sources, subordinate debt, soft put-bonds, and others sources that in my advanced age I simply can’t remember.  That’s the beauty being an independent advisor and charter school specialist – you aren’t married to any one source of financing and you have the relationships to fit the type of financing to the client’s need.

Charter schools are facing so many hurdles: political attacks, efforts to limit their growth, the pandemic, and facility cost inflation that is unprecedented.  Yet, you all persevere and thrive, finding ways to square the circles in creative and adaptive ways that your traditional public school brethren simply can’t match. I like what I do, and like being a small part of some of what is good about this country: the combined effort to change the life trajectory of so many kids through access to a quality education.

Client relationships often exceed 10 years, and exceed 15-years in some cases, which is a testament to the quality of service provided by Buck Financial Advisors.  I am truly grateful to all clients who have made this possible, as well as the other professionals and colleagues with whom I’ve worked with along the way.  I’ve gotten to know some simply incredible people who toil and sweat to make the lives of so many students and families better, whose efforts and attitudes are truly humbling.  In the end, its those personal relationships and the number of quality charter school seats resulting from these collective efforts that truly matter.  Looking forward continuing to work with all of you, and thank you, again, for working together all these years.

In November and December 2023, IPS Enterprises, Inc. closed two capital markets issues in Florida.  One of the issues was a $33MM new money issue to acquire and renovate a call-center in Lakeland, Florida to house IDEA Florida’s 3rd campus in the greater Tampa area.  The second issue totaled $87MM and was used to: 1) refinance senior debt on four IDEA Florida campuses in Jacksonville and Tampa, 2) refinance a portion of debt on properties no longer planned to be developed, and 3) provide working capital for various capital uses.  The Lakeland financing was issued through the newly-formed Capital Projects Finance Authority, and the refinancing was issued through the Capital Trust Authority.

IDEA Florida, Inc. currently operates four campuses in Florida, two in Jacksonville and two in Tampa, with construction ongoing to open two more campuses in Fall 2025.  Each IDEA Florida schools is designated as a “School of Hope” under a special Florida law passed to encourage high-performing operators to open and operate schools near persistently low-performing traditional public schools.

IPS Enterprises, Inc. was formed by IDEA Public Schools for the purpose of providing central office services to IDEA schools outside of Texas, and to also lease facilities to non-Texas IDEA schools.  IPS currently serves IDEA campuses in Florida, Louisiana, and Ohio, and has completed over $450 million in facility financings and refinancings since 2017.

Buck Financial Advisors LLC served as Financial Advisors to IPS on both transactions.  Morgan Stanley served as underwriter.  Hunton Andrews Kurth served as bond counsel and borrower’s counsel.  Orrick Herrington & Sutcliffe served as underwriter’s counsel on both issues, and Quarles & Brady served as Co-underwriter’s counsel on the refunding issue.  Regions Bank served as Trustee.

Congratulations to IPS, IDEA Florida, and to the students and families they serve.

In February 2024, BASIS Texas Charter Schools, Inc. (BTX) closed on a $30 million revolving Line of Credit.  BTX is a growing CMO which often needs to be in a position to take down land and/or begin the construction process in between planned capital market transactions.  This line of credit, issued by Texas Capital Bank, will allow BTX to begin the ever-longer construction timelines and still be able to open schools on time.  It was issued on parity with other obligations under its Texas Master Trust Indenture, which obligations now total about $170 million.

BTX is a CMO operating 14 schools in three Texas metropolitan areas, enrolling over 6,000 students.  It offers a STEM-infused college preparatory curriculum endeavoring to achieve world-class academic excellence.

Buck Financial Advisors served as Financial Advisor and Independent Management Consultant.  Shulman, Lopez, Hoffer and Adelstein LLP served as borrower’s counsel, Jackson Walker LLP served as bank counsel, BOK Financial NA as Trustee, and Clearwater Ventures as Owner’s Representative.  Congratulations to Andy, Andrea, and all the folks at BTX.