Sims’ Retail Distribution and Charter School Expertise Deliver More Proceeds at Lower Costs


SEPTEMBER 13, 2017

CONTACT: Tara Perkins, PR & Marketing Specialist | 203-418-9049 |

Sims’ Retail Distribution and Charter School Expertise Deliver More Proceeds at Lower Costs

FAIRFIELD, CT– HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful completion of a $22,995,000 refinancing in June 2017 for Charter School for Applied Technologies (CSAT), the largest charter school in the state of New York, located in Buffalo. CSAT’s refinancing successfully met the school’s objective of lowering its cost of capital and reducing annual debt service.

Sims was engaged by CSAT to refinance its Series 2005 Bonds and issue new money debt for an expansion of the current high school. The expansion will enable CSAT to increase its enrollment and offer additional educational opportunities to its students. Sims worked with CSAT to achieve the following strategic objectives:

  • Reduce CSAT’s overall cost of capital
  • Reduce CSAT’s debt service related to the Series 2005 Bonds
  • Achieve a Present Value of Savings of 5% or greater on the refunding
  • Finance the $4,000,000 high school expansion, keeping debt service consistent with the Series   2005 Bonds

To meet CSAT’s strategic financing objectives, Sims recommended a fixed rate, tax-exempt bond issue (2017 bonds) with the same maturity as the bond issue to be refunded (the 2005 Bonds). The 2017 Bonds are rated BBB-/Stable outlook by Standard and Poor’s. The investment grade rating provided for strong demand for the Bonds from institutional and private client investors.

Sims successfully priced a $22,995,000 issue with an arbitrage yield of 3.86%% ($22,845,000 of the issue was tax-exempt, fixed rate debt). A $150,000 taxable series was issued to provide for 100% financing of the project. On a net present value basis, the refunding of the Series 2005 Bonds provided savings to CSAT of more than $4,000,000 or approximately 21% of the par amount of the refunded Bonds. On an annual basis, the refunding saves roughly $340,000. The yield on the Series 2017 longest term Bond was 4.10%, achieving CSAT’s strategic objective to reduce the overall cost of capital.

“We consider a component of prudent financial management to include the cost savings of the refunding of our school’s current bond for lower interest rates. CSAT was successful in completing this goal with the direction of the underwriting team of Jay Hromatka and Sims. Jay’s commitment to deliver an equitable financial structure and facilitation of our weekly calls, and numerous requirements kept us on task and greatly assisted us towards our targeted goal – realignment of costs for proper reinvestment. The provisions of the reduction of bond interest costs and ‘new money’ allowed our school to construct a high school addition. I am honored to have worked with such professionalism as garnered by Jay and his team,” said Tanya Moore, Chief Financial Officer, CSAT.

For a Financed Right® solution, contact Jay Hromatka at 952-683-7506 |

ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm with $2.2 billion of assets under management. HJ Sims is one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $22 billion for projects throughout the US. The firm is headquartered in Fairfield, Connecticut, with investment banking, private client wealth management and trading nation-wide. Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, is custodian of all client assets. HJ Sims is not affiliated with CSAT. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow us on Facebook and LinkedIn.

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