In July 2020, High Tech High completed a $71.225 million refunding via a tax-exempt bond issue which was directly purchased by City National Bank of California (an RBC Company).\u00a0 The issue was completed through the California School Finance Authority under the guidance of Treasurer Fiona Ma and Executive Director Katrina Johantgen.<\/p>\n
Over the years, HTH had issued a series of financings, beginning in 2010 with a Qualified School Construction Bond issue.\u00a0 HTH followed up that issue with a 2013 QSCB, and then issued a series of issues from 2014-2018.\u00a0 All of their outstanding issues with the exception of their Series 2017 bond issue were refinanced with the proceeds of this non-rated issue, which was structured as a Master Trust Indenture financing.\u00a0 Additionally, a minor new money component of $1 million was included for the construction of a kitchen at HTH’s Mesa campus.\u00a0 This financing has a 20-year maturity and uses a 30-year amortization schedule.\u00a0 Its all-in interest rate is 2.57% as the result of a floating-to-fixed rate swap with CNB.<\/p>\n
HTH currently operates sixteen schools across the San Diego metropolitan region.\u00a0 Their 2020 enrollment was approximately 5,800 students, and enrollment is expected to grow to over 6,500 students by fiscal 2023.\u00a0 Fourteen of the sixteen HTH schools make up the obligated group of this financing (through their landlord LLCs).\u00a0 The actual borrower was HTH Learning, a companion corporation set up to own facilities and lease them to HTH, and the transaction will qualify HTH for the California SB 740 lease reimbursement program.<\/p>\n
Begun by a coalition of educators and civic leaders in and around San Diego in 2000, HTH is guided by four connected design principals which set aspirational goals and set a foundation for understanding their educational approach.\u00a0 These are: equity, personalization, authentic work, and collaborative design.\u00a0 Equity to address inequalities and help students reach their full potential.\u00a0 Personalization to practice a learner-centered approach that supports and challenges each student.\u00a0 Authentic work means to integrate hands and minds and incorporate inquiry across multiple disciplines which helps students engage in work that matters to them.\u00a0 Collaborative design where teachers work together to design curriculum and projects, among other goals.<\/p>\n
In addition to the $71 million facility financing, a $15 million working capital line-of-credit was also arranged through City National Bank.\u00a0 This will be critical to allow HTH to navigate the upcoming fiscal environment for charter schools in California as a result of the economic upheaval stemming from the Covid-19 lockdowns.\u00a0 Between the savings from the refunding and this line-of-credit, HTH has bolstered its ability to weather the fiscal storm expected over the next several years.<\/p>\n
Buck Financial Advisors LLC served as Municipal Advisor to HTH, and Procopio, Cory, Hargreaves and Savitch, LLP served as borrower’s counsel.\u00a0 Orrick, Herrington & Sutcliffe LLP served as bond counsel, and Kutak Rock served as bank counsel.\u00a0 Wilmington Trust served as Master Trustee.\u00a0 As noted, City National Bank directly purchased the bonds.<\/p>\n
Congratulations to the students, families and staff of HTH on this milestone, and keep up the good work!<\/p>\n","protected":false},"excerpt":{"rendered":"
In July 2020, High Tech High completed a $71.225 million refunding via a tax-exempt bond issue which was directly purchased by City National Bank of California (an RBC Company).\u00a0 The issue was completed through the California School Finance Authority under the guidance of Treasurer Fiona Ma and Executive Director Katrina Johantgen. Over the years, HTH… read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-350","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/posts\/350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/comments?post=350"}],"version-history":[{"count":3,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/posts\/350\/revisions"}],"predecessor-version":[{"id":354,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/posts\/350\/revisions\/354"}],"wp:attachment":[{"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/media?parent=350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/categories?post=350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buckfinancial.net\/blog\/wp-json\/wp\/v2\/tags?post=350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}