Charter School Bond Issuance: A Complete History Volume 2

Date Published: 11/15/2012

Author(s): Elise Balboni and Wendy Berry

Publisher: LISC

2012 Charter School Bond Issuance: A Complete History Volume 2

Volume 2 of Charter School Bond Issuance: A Complete History examines the academic, operational and financial drivers of credit strength and risk for charter schools and the metrics for measuring them. For the first time, this volume provides extensive data and analysis of the disclosure provided in charter school bond offering documents, the credit characteristics of charter school borrowers at the time of issuance, the current financial strength of bond-financed charter schools as reflected in audited financial statements for Fiscal Year 2011 (FY11) and the repayment performance of these borrowers as of May 31, 2012.

Specifically, Volume 2:

  • Updates basic bond information for the expanded universe of 583 charter school tax-exempt bond issues, including data on par amount, issuer, jurisdiction, rating, credit enhancement and underwriter, and further identifies which transactions remain outstanding, have been refunded or have defaulted.
  • Provides cost and pricing information for 75 transactions issued between January 1, 2011 and May 31, 2012, including coupon, yield, spread to the triple-A Municipal Market Index (MMD) for select maturities, underwriter's discount, costs of issuance and "All-In Cost."
  • Analyzes the disclosure documents for approximately 400 outstanding bond issues to determine if disclosure has evolved over the sector's 15-year history and makes recommendations for best practices in disclosure.
  • Provides analysis of charter school credit characteristics at issuance for approximately 400 outstanding issues and calculates medians for key credit characteristics.
  • Gathers data from approximately 300 offering documents with multi-year pro forma budgets and analyzes growth assumptions.
  • Calculates medians for 22 different financial metrics based on FY11 audited financial statements for approximately 300 charter schools with outstanding bond issuance.
  • Compares key pro forma items and metrics with actual FY11 performance for a subset of offerings with both projected and actual FY11 data available in order to assess pro forma accuracy.
  • Examines the repayment performance of charter school borrowers and details the disclosure and credit characteristics of defaulted transactions.

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Topics: Education, Children & Youth, --Educational Facilities

Type: Guidebook