Services
We help charter schools finance buildings and cash-flow needs. After closing, we help them meet the reporting and covenant requirements that come with the debt.
Engagements
We start with the school’s budget and calendar. We check whether borrowing makes sense before we recommend how to do it.
Conduit revenue bonds and other financing to buy, improve, or refinance school facilities, from the first analysis through closing. We put together the financing plan, prepare the board, work with the rest of the financing team, and review the terms and pricing.
Revenue anticipation notes and short-term loans sized to the school’s monthly cash-flow forecast. We also help with state programs, such as California’s revolving loan fund for charter schools.
Reports the bond documents require from an independent consultant, delivered to the trustee and bondholders by the dates the documents set.
Quarterly and annual disclosure reports, covenant tracking, and help with lender reviews. We set up a calendar so each filing goes out on time.
Budgets for charter petitions and expansions, advice on how a growing multi-school network is organized, and help with legislation and day-to-day logistics.
Most of our work is with California charter schools. We can also work with nonprofit educational organizations in other states.
The municipal advisor’s role
The underwriter buys the bonds to resell them to investors, and a lender makes a loan on its own terms. As municipal advisor, we review their terms on the school’s behalf.
From first call to after closing
Every deal is a little different, but most follow these five steps. We are involved in each one.
Check whether the project and its timing fit the school’s budget and cash flow.
Write the financing plan, brief the board, and bring in the rest of the financing team.
Prepare what lenders and rating agencies ask for, and review drafts of the legal documents.
Review the proposed pricing and advise the school through closing.
Help with covenant tests, disclosure filings, consultant reports, and lender reviews.
The steps vary with the type of financing and the parties involved.
Our duty
The school hires us as its municipal advisor. We do not underwrite bonds or lend money.
The school engages us, and our duty is to the school.
A financing team may include a conduit issuer, a trustee, an underwriter or lender, counsel, and investors. Each has a different job.
KCA is registered as a municipal advisor with the SEC and MSRB.
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