Transaction Details

New Designs Charter Schools

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Favorable Market Conditions Met with Strong Investor Participation

Based in southern Los Angeles, New Designs Charter Schools opened its doors in the fall of 2004 to 120 students in grades 6-8. Since then, they have grown into three campuses serving 1,300+ students in grades 6-12. New Designs provides a career-based, college-preparatory program for all students, regardless of socio-economic circumstances. New Designs is committed to the development of a college-preparatory learning environment that enables students to become literate, self-motivated, and lifelong learners. Their primary goal is to prepare students for advanced careers in the fields of medicine, engineering, information technology, and law and diplomacy.

New Designs needed to finance and refinance the cost of acquisition, construction and renovation of educational facilities located at each of their three campuses: University Park Campus, Adams Campus, and Watts Campus. In addition to funding a portion of the debt service reserve fund and paying the cost of issuing the bonds.

Baird’s National Charter School Finance team served as sole managing underwriter on the $32,085,000 BB+ financing for New Designs Charter Schools. The market conditions were promising on the day of pricing, as the high yield market has been operating favorably, in sharp contrast to that of the high investment grade market, on the day of pricing. Baird’s salesforce was able to build another strong book as they were met with extremely strong reception from 18 different accounts to finalize the financing.