Watch as we explore our new zero-cost bond option through our partnership with Wonderful Foundations, a 501c3 non-profit with a shared mission – to serve more students in the charter school movement. Learn more about the benefits of going to bond without the time-intensive work or the heavy expense.

1. Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
Financing your
school building
just got very
interesting

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
Tommy Alberini
Director of Acquisitions and Underwriting
Dad, Los Angeles native, cyclist
Jon Dahlberg
VP, Business Development and Facilities
Empty nester, Minnesota native, golfer
OUR
SPEAKERS

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
AGENDA
•Nationwide, charter-friendly
real estate platform
•School-centric facility
framework –
what to consider and how
•A new, no-cost bond
alternative
•Q&A

4. Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
Nationwide Real Estate Platform

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
OUR FACILITIES HISTORY
• Developed flexible facilities
platform and ecosystem of
world-class partners
• Helped our partners purchase
and manage more than 50
charter school buildings in past
10 years
• Continuing to develop innovate
facilities solutions to meet the
needs of charter schools
around the country

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
OUR FACILITIES HISTORY

7. Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
School-Centered Facility Framework

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SCHOOL-CENTERED FACILITY FRAMEWORK
What should you consider?
• Matching your facilities to your mission
• Term length
• Expansions (i.e., classrooms, gyms, libraries)
• Path to ownership
• Covenants
• Buyout options / refinancing options
• Lease renewals
• Payment amount
• Operational expenses
• Control over building improvements

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
TRADITIONAL FRAMEWORK FOR EVALUATING FACILITIES FINANCING
• The ability to adapt
and change
• Offers different
options
• Predictable
• Constant
• Permanent
• Price paid to acquire
or maintain
• What you give up
(opportunity cost)
Flexibility Stability
vs. = Cost

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FLEXIBILITY VS. STABILITY
What increases flexibility:
• Shorter terms
• Buyout options
• Lease renewals
• Lack of covenants
• Ability to expand / upgrade / relocate
What increases stability:
• Ownership
• Longer terms
• Fixed / predictable payments
Flexibility
Stability

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
No-cost Bond Alternative
FLEXIBILITY VS. STABILITY
Self-Issued Bond
Long-Term Lease
Short-Term Lease
Flexibility
Stability

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COST: A COMPARITIVE CASE STUDY
$5mm Building Value
(Purchase Price)
Traditional Bond Option:
• Bond @ 6% interest rate
• 15% cost of issuance (capitalized)
• 10-year lockout period
CSC Lease Option:
• Lease @ 7% rental rate (of purchase price)
• 2% annual escalators
• Buyout options in year 3 & year 10

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COST: TOTAL ANNUAL & CUMULATIVE PAYMENTS
Total Annual Payment
$418k $418k $418k
$350k
$418k
$490k
Year 1 Year 10 Year 18
Bond Lease
Total Cumulative Payment
$1,253k
$4,177k
$7,519k
$1,071k
$3,832k
$7,494k
Year 3 Year 10 Year 18
Bond Lease

14. Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
No-Cost Bond Alternative

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OUR FACILITIES FINANCING PLATFORM & PARTNERS

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
PROVEN TRACK RECORD FOR CHARTER SCHOOL SUCCESS
• July 2020: $220 million of revenue bonds issued for 13
schools through Wonderful Foundations.
• May 2021: Second Wonderful Foundations bond
issuance planned for 10 schools.

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
NEW FRAMEWORK + WONDERFUL FOUNDATIONS
Flexibility Stability
+ > Cost
• Get into a bond without incurring
transaction fees
• Gain access to annual giving funds –
annual gifts for your school to put to
work in any way you like
• Secure access to a capital
expenditure fund – helping fund your
school building improvements or repairs
• No drag on your time – we
manage the path to building
ownership
• No covenants (no restrictions on
working capital borrowing or debt
service reserve account, etc.)
• Benefits of ownership – schools in
good standing will be gifted their
building
• Enjoy the security of a non-profit
landlord whose mission is
completely aligned with the charter
school – to serve more students with
better educations
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QUESTIONS?

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
NEXT STEPS:
• Speak with your board and trusted
advisors, and share this information
with them
• Talk with your landlord – or introduce
them to us!
• Connect with us to find out whether:
–Your school might qualify for a path to
ownership through a no-cost bond
alternative
–Your school might save every month
through our lease-back solution

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Copyright © 2021 Charter School Capital, Inc. All Rights Reserved.
THANK YOU
FOR ATTENDING!
EMAIL: jdahlberg@charterschoolcapital.org
PHONE: (704) 236-5992
Jon Dahlberg
VP, Business Development and Facilities
Tommy Alberini
Director of Acquisitions and Underwriting
EMAIL: talberini@charterschoolcapital.org