The Louisiana Public Facilities Authority sold $32.1 million in bonds to finance improvements at a charter school near New Orleans.
The authority sold the bonds in two series. The tax-exempt Series 2024A bonds, consisting of $31.6 million, mature between 2054 and 2059, yielding between 7.625% and 7.75%. The taxable Series 2024B bonds, consisting of $485,000, mature on June 1, 2027, and yield 8%. The securities were not rated by any rating agency.
“Purchase of the Series 2024 Bonds involves a high degree of risk and the Series 2024 Bonds are a speculative investment,” the official statement accompanying the sale of the bonds reads.
The authority will loan the bond proceeds to Athlos Academy of Jefferson Parish, a charter school in the outskirts of New Orleans. Athlos will use the proceeds to acquire “certain land and educational facilities” in the suburb of Terrytown, according to the bond documents.
Athlos Academies is a national charter school organization. It runs two other schools in addition to Jefferson Parish, in Minnesota and Utah. The Jefferson Parish school opened in 2018.
The bonds are limited and special obligations of the authority, payable by the Jefferson Parish school’s revenue. The school recorded $18.9 million in revenue last fiscal year.
Herbert J. Sims & Co, Inc served as underwriter on the issuance, purchasing the bonds with a discount of $1.4 million.