Spence School

Build NYC Resource Corporation
2019 Tax-Exempt Promissory Note
(Trustees of the Spence School, Inc.)
Wye River Group Proudly Served as Spence School’s Independent Financial Advisor for this Transaction.

Project Overview

Wye River Group served as the Spence School’s independent financial advisor in connection with the financing of the development and construction of a 6-story, approximately 53,500 square foot athletic and educational facility. The Facility has been designed to address the School’s current deficiencies in its athletic and certain other educational programs, allowing the School to (1) meet the needs of its growing athletics program by providing (a) regulation sized courts for its volleyball, basketball and badminton teams and (b) courts for its squash program and (2) support the expansion of programmatic offerings including environmental stewardship curricula (which will use the rooftop greenhouse and classroom space) and dance, body movement and other performance curricula (which will use the large multipurpose space).

Financing Overview

The School’s transaction was structured as a bank-purchased, tax-exempt, fixed rate revenue note. Through a negotiation with the School’s existing banking partner, Wye River Group helped the School secure a favorable interest rate with a 20-year commitment term. The transaction was structured as a parity obligation to the School’s Series 2013 Note under the School’s master trust indenture, allowing the School to maintain the favorable rate on the Series 2013 Note (Wye River Group also served as advisor to spence in connection with the 2013 transaction). The debt service on the Series 2019 Note was “wrapped” around that of the Series 2013 Note to produce aggregate level debt service.  The financing closed in May 2019.