Universal Learning Academy received its charter from Bay Mills Community College and began operations as a public school academy in 2004, enrolling 161 students and offering grades K-2. In the 2006-07 and 2007-08 school years, the Academy added 3rd and 4th grade respectively. In 2008-09, the Academy added Pre-K and 5th grade. In 2010-11, the Academy added sixth grade and suspended offering Pre-Kindergarten for one year due to space limitation. The Academy will offer grades Pre-K-12 at the new Facility. The Academy was recently named one of 50 Michigan charter schools designated as a School of Excellence.
The proceeds from the Series 2011 Bonds were used to acquire land and construct a 68,000 square foot facility containing 33 classrooms. The new facility is approximately 4 miles from the current facilities. The Academy is relocating from Dearborn Heights to the City of Westland in Michigan, approximatley 4 miles. As a result of the efforts of the Academy, its Counsel and Clear Scopes in conducting a comprehensive due diligence related to the relocation, ensuring fair market value on the land, receiving buy in from the new community, exploring alternate options and highlighting the necessity of the new facility, the Academy received approval from its Authorizer for the financing and relocation.
Clear Scope worked with the Academy to highlight its flourishing enrollment trends, strong financial position, strong management and a recent successful early renewal of the charter resulting in Standard & Poor’s assigning a rating upgrade from “BBB-.
The Academy was able to use $500,000 of appropriated funds from the States of Michigan to fund their debt service reserve fund. Funding the reserve with appropriate funds decreased the amount the Academy had to borrow effectively creating a zero percent loan for the reserve amount.
Clear Scope Advisors worked with the Underwriter to structure the financing to appeal to investor. Despite the soft and volatile market conditions, the Underwriter undertook a strong sales effort and was able to secure investors. The transaction was a 30 year, fixed rate, BBB- rated financing with an average coupon of 7.41%.