Case Studies
Periodic
Reports
The Value of Our Periodic Reports
A Pennsylvania charter school bond was issued at a price of 95 cents for $35 million. Four months later, School Improvement Partnership issued the charter school’s first Quarterly Report. Three days later, $28 million of the charter school’s bonds traded at 105, for an annualized gain to the original bond purchaser of 26%. The School hadn’t even finished the construction project! Continuing disclosure by School Improvement Partnership helped unlock the true market value of these charter school bonds.
Independent Evaluation
The Value of Our Independent Evaluation
A high-achieving California CMO had two series of bonds outstanding, with one facing a covenant default. School Improvement Partnership was brought in as an independent consultant as required under the bond documents to perform an evaluation of the school’s finances, and worked with the bondholders and the CMO to create an Improvement Plan. After adopting the recommendations in the Improvement Plan, the CMO is now in compliance with all financial covenants, and the market value of the bonds has been re-established. They were upgraded by Standard & Poor’s from BB- to BB because of their enhanced financial reporting. And their high school was recognized by U.S. News & World Report among the top 15 in Los Angeles.
Monthly Monitoring
The Value of Our Monthly Monitoring
A Detroit charter school was in the bottom 5% of Michigan’s lowest performing charter schools according to the State Department of Education, and its charter renewal was in doubt. Bond investors elected to lend $400,000 from the Debt Service Reserve Fund to help with cash flow under the condition that School Improvement Partnership hold monthly oversight calls, with notes provided to all bondholders. Within six months, the Debt Service Reserve Fund advance was repaid in full, the school was out of the bottom 5% of Michigan’s schools and the charter was renewed. A payment default was averted, and the school started an RFP process to install a full-service manager with the support of the authorizer and the bondholders
