BLOOMINGTON, Minn., Dec. 12, 2016 /PRNewswire/ -- HJ Sims, a privately held investment bank and wealth management firm, founded in 1935 on Wall Street during the Great Depression, is pleased to announce the refinancing of Summit Academy North in Romulus, MI and the successful underwriting of a $22 million bond issue. The refinancing successfully met the Academy's objective of reducing the cost of capital, reducing annual debt service and improving cash flow while achieving a present value of savings exceeding 3%. Summit Academy North is now able to invest more money in its school operations.
Summit Academy North is a public school academy that began operations in September 1998, offering grades K-5. By 2000, it added grades 10-12 and enrolled 850 students. The Academy added a virtual /online program in 2015 and now enrolls approximately 2,000 students in grades K-12.
The Academy engaged HJ Sims to refinance its Series 2005 Bonds to meet the Academy's strategic financing objectives; and HJ Sims developed multiple refinancing structures and scenarios. The Academy elected to move forward with a fixed-rate, tax-exempt bond issue with the same maturity as the bond issue to be refunded (the 2005 bonds). HJ Sims worked with Standard and Poor's during the financing process to reaffirm its BB rating and successfully priced the $22,435,000 refunding issue with a True-Interest-Cost of 4.90%. On a present value basis, the refunding saved Summit Academy North approximately $824,000, or 3.6% of the par amount of the refunded bonds. Annually the refinancing saved $74,000+.
"I would formally like to thank everyone involved in the process of refinancing our bonds on behalf of our board and most importantly on behalf of our amazing students who will benefit so much from the additional funds that we can add back into our budget every year. This will help us to accomplish our goals to completely close the learning gap for 100% of our students, assure that not only every student will be accepted into college but will receive a scholarship and will attend and complete college, and that we will become a Central Michigan University school of excellence. My deepest gratitude to everyone," said Leann Hedke, School Superintendent, Summit Academy North.
"Sims is proud to support this advanced charter school that brings state-of-the-art education to children K-12 in southwestern Wayne County. With more than 100 charter school financings, HJ Sims is deeply committed to help our clients create, improve and build their vision. We work with each client to meet their unique objectives, personalizing a Financed Right® solution," explains Jay Hromatka, Executive Vice President, HJ Sims.
For more information about HJ Sims, charter school financing and how we can offer you Financed Right® solutions, please contact Jay Hromoatka at firstname.lastname@example.org 952-683-7506.
ABOUT HJ SIMS: Founded in 1935 on Wall Street, HJ Sims is celebrating more than 80 years of service as a privately held investment bank and broker-dealer with approximately $2 billion of assets under management. HJ Sims is known as 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 offices in Maryland, Massachusetts, Florida, Minnesota, New Jersey, Pennsylvania, Texas and Puerto Rico. Pershing LLC, a subsidiary of The Bank of New York Mellon Corporation, is custodian of all client assets. For more information, please visit: www.hjsims.com/ourstory. Investments involve risk, including the possible fluctuation of principal. Member FINRA, SIPC. Follow HJ Sims on Facebook, Twitter and LinkedIn.
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SOURCE HJ Sims