West Michigan Academy of Arts and Academics (the “Academy”) received a charter from Grand Valley State University and began its operation in the fall of 1996 offering grades K-12 to 152 students. The Academy reduced the grades offered to K-8 in 1997-98 and enrolled 108 students. The Academy has continued to experience growth in its student population and as of the 2012-13 school year had an enrollment of 431 students in grades K-8. The mission of the Academy is to empower students to reach their ultimate personal success through the unique integration of Arts and Academics.
The Academy’s school facility is located on an 8 acres site in Spring Lake, Michigan. The school facility has approximately 33,000 square feet of space including 18 classrooms, a media room, multi-purpose/gymnasium, kitchen, conference room and offices.
A portion of the proceeds of the Bonds were used to refinance a promissory note used by the Academy to finance the acquisition, renovation, equipping and furnishing of the existing facility. The proceed from the Bonds were also used to finance the costs of the construction and equipping of an addition to the Facility that will include a performing arts theater and four new classrooms (the “Project”).
Clear Scope and the Underwriter began working with the Academy as a result of challenges faced in securing additional financing from the Academy’s previous lender. Clear Scope was able to complete this refinancing in 5 weeks, allowing the Academy to stay on schedule with there construction timeline.
Clear Scope Advisors worked with the Underwriter to structure the financing to appeal to investor and meet the Academy’s needs of refinancing its outstanding debt and raising additional proceed for the project. The Underwriter undertook a strong sales effort and was able to secure investors. The transaction was a 30 year, fixed rate, non-rated financing with an average coupon of 5.4%.