The Indiana Finance Authority issued $20 million in taxable term bonds to finance the construction of a charter high school.
The bonds mature between 2033 and 2058, yielding between 6% and 7.15%. They received a rating of Ba2 from Moody’s Investors Service.
The authority will loan the bond proceeds to Matchbook Learning School of Indiana, a charter school in Indianapolis.
“The initial Ba2 reflects the charter school’s stable source of demand over the long-term given its unusual position as a zoned neighborhood school within the Indianapolis School District’s service area, which also supports the school’s prospects for continued charter renewal despite relatively poor academic performance,” Moody’s analysts wrote.
The charter school that is now Matchbook used to operate as a standard public school within the Indianapolis Public Schools system. The school “consistently had poor student academic performance and was converted to innovation status after years of struggling,” according to the official statement accompanying the sale of the bonds.
Matchbook was incorporated in 2018 and took over the public school with new management. The school’s academic program now “focuses on personalization in order to meet students where they are by creating individualized learning plans to support increased academic performance,” the bond documents read.
The bond sale will finance Matchbook’s acquisition of two buildings in Indianapolis that it will convert into a new high school. The construction project includes the renovation of 60,000 square feet into 21 classrooms, a cafeteria, gym, and various offices and restrooms.
The bonds are special and limited obligations of the finance authority, secured by loan repayments from Matchbook.
Robert W. Baird & Co Inc served as underwriter on the issuance. Bondry Management Consultants LLC acted as municipal advisor.