Despite recent market volatility and higher borrowing costs, charter school transaction volume is on pace for another record year in 2022.
Our Mid-Year Update summarizes relevant statistics from charter school transactions completed in the first half of 2022. Inflation-related concerns have resulted in significant market disruption with benchmark interest rates increasing dramatically over the past six months and now sitting above their 10-year averages for the first time in several years. Although private market transaction data remains elusive, data in the public capital markets is robust and provides helpful insight for schools contemplating future borrowings. Philanthropically supported loan funds such as Equitable Facilities Fund (EFF) and Facilities Investment Fund (FIF) remain active and a ready source of capital for certain types of charter schools.
First Tryon Advisors, LLC d/b/a Wye River Group is a leading independent financial advisor to non-profit K-12 schools for facility-related debt financing. We have extensive experience serving charter schools with all forms of debt financing ranging from publicly offered bonds to tax-exempt bank loans and everything in between. We seek to secure financing solutions for our clients that provide the lowest overall cost of capital, optimize financing flexibility, and are part of a coherent and measured debt strategy.
Please contact us for additional information.