Merit College Preparatory Academy, a public charter school located in Springville, Utah, required a funding solution in order to refund a promissory note that was coming due. Several years back, the school experienced a loss of a program that provided a substantial part of the school’s enrollment. The school made several changes and has continued to improve their enrollment and financial position. The firm that built the facilities for the school provided financing for the facilities. Over the years, the payment obligations became a challenge for the school.
Crews was able to work with Merit College Preparatory Academy and their municipal advisor to provide a portion of the funds for the refunding of the promissory note. Our firm acted as the sole senior manager and underwrote 30-year, fixed rate, non-rated tax-exempt and taxable senior bonds. The original lender assumed a subordinate bond for the balance of the refunding. The bonds were structured in a manner that allowed for reduced payments over the next five years to assist the school in improving their liquidity position. The senior bonds were secured by revenues of the school and a mortgage on the new facility.
Crews worked hard to serve our client in extraordinary ways by: