The Columbus-Franklin County Finance Authority sold $30 million in term bonds to finance improvements at a public charter school.
The bonds mature on July 1, 2053, and yield 7%. They did not receive a rating.
The authority will loan the bond proceeds to a nonprofit affiliated with the Cornerstone Academy Community School, a charter school in New Albany, a northwest suburb of Columbus.
The school will use the proceeds to refund securities it issued in 2016 and fund improvements for its middle and high school buildings. The bonds will also finance the creation of athletic fields. Construction is expected to begin in March of next year and wrap by July.
“The delay in the commencement of the improvements to the Series 2023 Facilities is due to the time consuming process to obtain the required building permits,” the official statement accompanying the sale of the bonds reads, in reference to the middle and high school improvements.
The issuance follows the announcement last year that semiconductor manufacturer Intel Corp intends to build two chip factories in the New Albany area, approximately five miles from Cornerstone Academy. The opening of the factories in 2025 is expected to create 20,000 jobs in the area, according to the bond documents. An influx of jobs to the county could lead to an increase in enrollment at Cornerstone and other public schools.
The bonds are limited obligations of the authority, payable by loan repayments from Cornerstone Academy.
Piper Sandler & Co served as underwriter on the issuance, purchasing the bonds for close to par. Diperna Financial acted as municipal advisor.