FAIRFIELD, Conn., May 10, 2017 /PRNewswire/ -- HJ Sims (Sims), a privately held investment bank and wealth management firm founded in 1935, is pleased to announce the successful financing in the amount of $6,670,000 in April 2017 for Harambee Institute of Science and Technology Charter School (Academy), a charter school authorized by the School District of Philadelphia that serves 530+ children, grades K-8 and is located in Philadelphia, PA.
Based upon Sims' commitment to its borrowers and its attitude of perseverance, the Academy engaged HJ Sims to finance its currently leased facility. Sims worked with the Academy to achieve the following strategic objectives:
- Provide funds to help Harambee (the first African-centered Charter School in Pennsylvania) own its own facility
- Provide additional $500,000+ for improvements to the facility and reimburse the Academy for costs previously incurred that were related to the project
- Achieve debt service approximately equal to the Academy's lease payments
Sims achieved the Academy's strategic objectives by producing and evaluating multiple financing scenarios. The Academy elected to move forward with a 35-year fixed rate bond issue. Sims was successful in marketing and selling the non-rated bonds to its own private client investors. Sims provided 100% financing, requiring no equity from the Academy. Sims' ability to access this capital sector enabled the Academy's to meet its strategic objectives while providing them with financing to acquire and make $500,000 of improvements and reimbursements to the current facility. Important to the Academy was to keep its new debt service approximately equal to previous lease payments and the financing achieved this objective. The Academy's ability to secure long-term, fixed rate financing has positioned the Academy to continue its mission as the first African-centered Charter School in Pennsylvania.
"I can't properly express my gratitude and appreciation to Jay Hromatka. Jay's determination and commitment to getting Harambee through what must have been THE most unusual and challenging finance deal was amazing. I was generally familiar with public financing from my terms on the School Reform Commission, but I was not prepared for the nearly three-year roller coaster ride of our transaction. Through it all, Jay was a steadfast coach, cheerleader and task master. The Harambee board, staff and families send a resounding 'ASANTE SANA (Thank you)' to Jay, Sims, Rodney Jones and the entire professional team for making us the proud owners of our facility," said Sandra Dungee Glenn, CEO of Harambee Institute of Science and Technology Charter School.
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. 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. HJ Sims is not affiliated with Harambee Institute. 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