Behind the Deal: KIPP Capital Region Public Charter Schools
New York Charter Supply Met with Sizable Investor Appetite
KIPP Capital Region is a unified group of seven schools serving 2,500+ students in grades K-12 located in Albany and Troy. KIPP Capital Region is affiliated with the KIPP Foundation, a national network college-preparatory public charter schools with a 25-year track record of preparing students in educationally underserved communities for success in college and in life.
KIPP Capital needed funding for the construction of a high school campus which will sit adjacent to KIPP Tech Valley’s middle school and elementary school, which will complete a K-12 campus, offering families a convenient and seamless access to education within one location. The School received strong community support for the project in addition to the demand from three neighboring middle schools. Upon completion, this will be the only co-ed charter high school in Albany. The financing will also provide funding for the acquisition and installation of furniture, fixtures, machinery and equipment, a debt service reserve fund, capitalized interest, and the cost of issuance associated with the Series 2024 Bonds.
Baird’s National Charter School Finance team served as sole managing underwriter on the $50,105,000 BBB- rated transaction for KIPP Capital Region. On the day of pricing, Baird’s salesforce received significant interest from investors on the issue and was able to conduct an extremely aggressive reprice on a majority of the issue of 20 basis points (0.20%) with participation from 20+ accounts on the issue overall.
