BB&T Capital Markets Closes $12,485,000 Financing for Coweta Charter Academy in Senoia, Ga.
On June 5, 2014, BB&T Capital Markets closed a $12,485,000 Series 2014A/B tax-exempt and taxable fixed rate bond transaction through the Development Authority of the City of Senoia. The transaction financed a charter school in Senoia for the Georgia Charter Educational Foundation, Inc. The primary purpose of the Series 2014 Bonds was to finance the acquisition of the 57,871-square-feet of improvements as well as equipping and furnishing the K-8 classrooms at the charter school. Bond proceeds also provided funds for a debt service reserve fund, a capitalized interest fund, and a working capital fund.
About the Companies
Georgia Charter Educational Foundation, Inc. (GCEF or the foundation), was originally incorporated in June 2009 to oversee Coweta Charter Academy (Coweta or the school) and its sister school, Cherokee Charter Academy. Coweta’s charter allows the school to pursue its own method of educating students, while maintaining flexibility to negotiate service contracts outside the umbrella of the local school districts. The school is managed by Charter Schools USA (CSUSA), one of the nation’s largest private operators of public charter schools. CSUSA was the first charter school management organization to receive the Southern Associate of College and Schools accreditation, which recognizes the strength of the curriculum and processes in place to ensure quality education for all students. The school opened for the 2010-11 school year, during which it served 220 students in grades K-3. Faced with glowing reviews from current students and parents, a growing demand among prospective students, and solid academic performance, Coweta needed long-term financing. Therefore, in mid-2011, Coweta approached Michael Braun, BB&T Capital Markets managing director, to discuss opportunities for permanent financing. However, the state legislative environment in Georgia presented headwinds that delayed the financing. In early 2014, the environment had improved and permitted the financing to proceed. BB&T Capital Markets defined a long-term financing structure and process to acquire and equip the charter school. As of May 2014, the school enrolled more than 600 students in grades K-6.
Our Education Finance Group provides comprehensive capital structure planning and execution for higher education facilities, charter schools, private k-12 schools and public school systems. With a robust bond distribution platform and the resources of one of the nation’s strongest financial institutions, we can serve the needs of the education sector with focus and expert execution.
About BB&T Capital Markets
BB&T Capital Markets offers an integrated platform of equity and debt underwriting, M&A advisory, corporate banking, equity research and sales and trading. Headquartered in Richmond, Va., with offices throughout the U.S., we have specific expertise within eleven distinct industry verticals including Aerospace, Defense & Government Services; Automotive Aftermarket; Commercial & Industrial; Financial Services; Food & Agribusiness; Logistics & Transportation Services; Healthcare; Education; Energy; Real Estate; and Retail & Consumer. Our commitment to industry expertise, combined with our resources as one of the nation's strongest financial institutions, strategically positions BB&T Capital Markets to build lasting relationships and contribute measurably to the long-term success of our clients.