BB&T Capital Markets Closes $11,060,000 Financing for Research Triangle High School in North Carolina
BB&T Capital Markets closes a $11,060,000 Series 2015 A&B tax-exempt and taxable fixed rate bond financing for Research Triangle High School (RTHS or the School). The primary purpose of the Series 2015 bonds was to finance the acquisition of a permanent facility for RTHS. Bond proceeds also provided funds for a debt service reserve, capitalized interest, and costs of issuance.
“ The entire BB&T team were consummate professionals who worked as a tight, experienced team. They were available at any time, consistently working through the night to get our financing complete. If there was a problem to be solved, they had a solution. I strongly recommend the BB&T team, no one will regret working with them.”
Pamela BlizzardFounder and Managing Director, Research Triangle High School
About the Companies
RTHS is located in Research Triangle Park, North Carolina, opened its doors for the 2012-13 school year and initially serving 149 ninth grade students with the intentions upon growing the school to serve grades 9-12. RTHS draws upon the work of the Contemporary Science Center (CSC), an educational non-profit founded in 2002 to nurture students’ enthusiasm for careers in science and math. CSC was created to adapt scientific discoveries and processes, originating from Research Triangle Park companies into long-form lab activities for high school students. CSC’s focus was on experiential learning, immersing students in the process of science to stimulate lifelong engagement with learning of math and science. RTHS became the expansion of that dream, a full charter school focused on an innovative STEM curriculum that would model and scale new ways to educate. The School has grown as the community excitement with the educational model has built, with 347 9th through 11th grade students attending in 2014-2015. RTHS will ultimately grow to 515 students, with this financing facilitating their move to a new facility that will better accommodate the School’s new scale. The facility is 52,840 square feet that was constructed in 2010 as headquarters and meeting space for the former occupant. Due to the size and original design, RTHS was able to capitalize on a modest budget to transform the facility with updates to the technical infrastructure and classroom buildout.
BB&T devised a plan of finance for RTHS that focused on locking in historically low long-term interest rates with a public fixed rate offering, along with a small tranche of taxable bonds dedicated to financing costs of issuance. Because of the School’s youth, BB&T recommended RTHS issue non-rated bonds to keep issuance costs low. To help substantiate the sustainability of RTHS’s financial model, BB&T worked with the School’s auditor to develop a comprehensive forecast that provided sensitivity analyses demonstrating RTHS’s financial capacity.
Our Education Finance Group provides comprehensive capital structure planning and execution for higher education facilities, charter schools, private k-12 schools and public school systems. With a robust bond distribution platform and the resources of one of the nation’s strongest financial institutions, we can serve the needs of the education sector with focus and expert execution.
About BB&T Capital Markets
BB&T Capital Markets offers an integrated platform of equity and debt underwriting, M&A advisory, corporate banking, and sales and trading. Headquartered in Richmond, VA, with offices throughout the US, we have specific expertise within 10 distinct industry verticals including Automotive Aftermarket; Commercial & Industrial; Education; Energy; Financial Services; Food & Agribusiness; Healthcare; Logistics & Transportation Services; Real Estate; and Retail & Consumer. Our commitment to industry expertise, combined with our resources as one of the nation's strongest financial institutions, strategically positions BB&T Capital Markets to build lasting relationships and contribute measurably to the long-term success of our clients.