By Patrick Sheridan
New York City is selling $150 million in municipal bonds for the construction of a 309,000 square foot building in the Bronx to house a public charter elementary school, middle school and high school. When complete, the facility is expected to provide education for 2,400 students.
Build NYC Resource Corporation, a not-for-profit local development corporation, and a unit of the City of New York, will offer the Series 2024 tax-exempt revenue bonds to fund the project. Proceeds will also be used for costs of issuance according to a preliminary official statement posted Tuesday on MuniOS.
Dates of sale and settlement weren't provided. Preliminary pricing information on the securities was also unavailable.
The bonds are secured by rental payments from Success Academy Charter Schools under a lease arrangement with 586 River Ave, LLC, which is responsible for building the facility.
Success Academy Charter Schools was founded in 2006 and is the fifth largest school district in New York state operating 57 schools across New York City and serving over 21,000 students in grades kindergarten through 12, according to a document included on MuniOS.
Charter schools are publicly funded and open to all students in New York State through a non-discriminatory admissions lottery. Charters have freedom to establish their own policies, design their own educational program, and manage their human and financial resources. Charter schools are accountable, through the terms of a five-year performance contract, for high student achievement, according to the New York State Education Department website.
S&P Global Ratings has assigned a rating of A- to the bonds.
PNC Capital Markets is the underwriter.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
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October 29, 2024 14:26 ET (18:26 GMT)
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