City of Jacksonville, Florida
Educational Facilities Revenue Bond
(Jacksonville Alliance for KIPP Schools, Inc. Project)
Wye River Group served as KIPP Jacksonville’s Independent Financial Advisor for this transaction.
KIPP Jacksonville is part of the KIPP non-profit network of college-preparatory, public charter schools. The mission of KIPP is to prepare students from Jacksonville’s North and Westside communities with the knowledge, skills, habits, and character for success in college and life. KIPP currently serves approximately 1,600 students in grades K-8 on three separate campus properties throughout Jacksonville. KIPP employs more than 160 faculty and staff and has an annual operating budget of $18.2 million. KIPP was founded in 2010 and is accredited by the Southern Association of Colleges and Schools.
KIPP Jacksonville sought up to $23 million of tax-exempt financing to support the development of a new 8-acre charter school campus which will serve 900 students in grades K-8 and include a 63,000 square foot classroom building and a 10,500 square foot middle school gymnasium and to refinance its outstanding debt.
Wye River worked with KIPP Jacksonville and its strategic advisor (Level Field Partners) to conduct a competitive solicitation of select direct lenders and bond underwriters. KIPP secured a 15-year financing commitment from its lender with a conventional fixed rate in the mid-2s. The selected lender provided a draw down structure during the construction of KIPP’s new campus, a unique feature for conventional fixed rate transactions. Favorable financial covenants and additional indebtedness rights were also secured.
KIPP’s financing successfully closed on December 1.