Charter School for Applied Technologies (CSAT): Exclusive Investment Opportunity

**New issue is all sold. Please check with your advisor for secondary opportunities** 

 

CSAT logo

$24,430,000*
Buffalo and Erie County Industrial Land Development Corporation
Tax-exempt and Taxable Revenue Bonds
(The Charter School for Applied Technologies)
Series 2017A and Series 2017B

HJ Sims is pleased to serve as the underwriter for the upcoming issue of tax-exempt and taxable revenue bonds, proceeds of which will be used to refund the outstanding 2005 bond issue, and to expand and renovate the Charter School for Applied Technologies (“CSAT”).

About the Bonds

  • $24,430,000* par value of Series 2017 bonds will be offered
  • BBB- (stable outlook) affirmed by Standard & Poor’s
  • $5,000 minimum investment/$5,000 thereafter
  • Interest will be paid semi-annually, beginning December 1, 2017
  • Interest on the Series 2017A bonds is exempt from federal personal income taxes and personal income taxes imposed by the State of New York and any political subdivision thereof (“triple exempt”)
  • Interest on the Series 2017B bonds is subject to federal and State of New York personal income taxes.
  • Security for the bonds includes:
    – Gross Revenue Pledge
    – First lien on mortgaged property
    – Debt Service Reserve Fund
  • Covenants:
    – Debt Service Coverage Ratio:
    – If greater than 60 Days’ Cash on Hand: 1.00x
    – If less than 60 Days’ Cash on Hand: 1.10x
    – Days’ Cash on Hand: 45 Days
    – Academic Performance Covenant: Maintain overall performance tier of “Charter School in Good Standing” (or similar performance reporting tool used by the New York State Department of Education)
  • Bond Series
    – Series 2017A Tax-exempt fixed rate Serial and Term Bonds
    – Serial Bonds: maturities from 2018 through 2022
    – Term Bonds: maturities in 2027, 2032 and 2035
    – Series 2017B and 2018 Taxable Serial Bonds
    – * Series 2017B Taxable fixed rate Serial Bonds
    – * One maturity, due 2018

About The Charter School for Applied Technologies:

  • CSAT is the largest charter school in the state of New York
  • CSAT is in its 16th year of operation
  • CSAT’s charter was renewed for a third time, for a 5-year term beginning July 1, 2015 and ending on June 30, 2020
  • CSAT serves students in grades Kindergarten through twelfth grade (K-12)
  • CSAT currently owns two buildings and leases a third: an elementary school facility (owned), a middle school facility (leased) and a high school facility (owned)
  • Enrollment currently exceeds 2,000 students and CSAT has a waiting list of approximately 900 students
  • CSAT will use the proceeds of the bond issue to refund their outstanding 2005 bond issue, make some needed repairs and renovations to the facilities, and build and addition to the high school
  • CSAT will construct and equipment an approximately 20,000 square foot addition, which will provide an additional 132 seats for high school students for the 2017-2018 school year

We are currently accepting indications of interest for these tax-exempt and taxable revenue bonds with an expected pricing date the week of June 26, 2017. For more information including risks, please read the Preliminary Official Statement in its entirety.  If you have interest in purchasing Bonds in the new issue, please contact your HJ Sims financial advisor as soon as possible or call 888.881.5393. 

*Subject to change

No dealer, broker, salesperson, or other person has been authorized to give any information or to make any representation other than those contained in the Preliminary Official Statement, and, if given or made, such other information or representation should not be relied upon as having been authorized by the Issuer, the Borrower, or the Underwriters. The information set forth herein has been obtained from the Issuer, Borrower, and other sources that are believed to be reliable, but is not guaranteed as to accuracy or completeness by, and is not construed as a representation of, the Underwriters. The information contained herein is subject to change without notice. Under no circumstances shall this constitute an offer to sell or solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Any offering or solicitation will be made only to investors pursuant to the Preliminary Official Statement, which should be read in its entirety. Investments involve risk including the possible loss of principal. HJ Sims is a member of FINRA and SIPC and is not affiliated with Charter School for Applied Technologies (CSAT)
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