Buck Financial Blog

IPS Enterprises Taps Capital Markets for Two Florida Issues in Late 2023

Posted on: February 18th, 2024

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.