Corporate & Institutional
Charter Schools

Contact Us

Michael Gaughan 1-215-585-4389 michael.gaughan@pnc.com John Bartolini 1-412-762-0254john.bartolini@pnc.com

Charter Schools are new, innovative public schools that have been freed from some of the rules, regulations, and statutes that apply to other public schools. They are designed to deliver programs tailored to educational excellence and the needs of the communities they serve. Policymakers, parents, and educators are looking at chartering as a way to increase educational choice and innovation within the public school system. 

At PNC we combine a wider range of financial resources with a deeper understanding of your organization, to help you achieve your goals.

PNC Understands Charter Schools
Owning a facility is crucial to a charter school achieving its mission of offering a quality education, and provides stability as well as growth. As a leader in charter school financing, PNC understands the legal and financial variables that affect charter schools' ability to gain access to long-term financing rates through the tax-exempt capital markets. Through our vast network of institutional investors PNC has created an active market for the purchase of charter school tax-exempt bond issues.

PNC Offers Solutions for Charter Schools
Charter Schools often cannot raise enough grant funds to cover the costs of their facility projects. Through accessing the tax-exempt bond market, our Charter School clients have obtained a suitable source of financing for their building projects. Debt service payments can be comparable to lease payments, which allow schools to own their buildings, rather than just renting their facility.

Charter School Financing Worksheet
If your charter school is in its 4th year of operation and will have at least 400 students with a borrowing need of $5 million or more, please fill out our financing worksheet*. For a PNC financing analysis, email a copy of the completed form along with your contact information to Michael Gaughan at michael.gaughan@pnc.com.

Download our financing worksheet*

*To utilize the financing worksheet, save the document on your computer and open it as an Excel file.

Capital Market Solutions: Tax-Exempt Revenue Bonds

Acrobat PDF FileLearn more about Tax-Exempt Revenue Bonds

Why Tax-Exempt Bonds for Charter Schools?
Most states, cities, counties, and school districts use tax-exempt "municipal bonds" as their major source of capital. The advantages of a tax-exempt bond issue are:

  • Tax-exempt rates are lower than taxable rates or traditional bank financing
  • No up-front cash or equity is required, which will allow your school to borrow up to 100% of the cost of your project
  • Long-term fixed rates for up to 30 years will provide a predictable cost of capital that benefits the school budgeting process
  • Commercial bank financing typically will require 10% to 20% equity and set your interest rate for only 5 to 10 years, introducing refinancing risk and future market risk

Acrobat PDF FileView a comparison of different sources of financing

What is involved in a Charter School Tax-exempt Bond Issue?
While more complex than typical bank financing, PNC's expertise in this type of transaction can make the process easier. Once you have identified your project: refinancing of existing debt, acquisition, renovation or construction, and its financial scope, the tax-exempt bond process typically takes three to six months. During that time the following will take place:

  • Select underwriting and financing team
  • Receive an "inducement resolution" from a municipal entity to issue the tax-exempt bonds on your behalf
  • Apply to a rating agency to receive your credit rating
  • Document the transaction
  • Conduct investor site visits
  • Price and close the bond issue

For more ideas about the solutions PNC can offer you, view our Acrobat PDF FileCase Study and Acrobat PDF FileSelect Transactions, or contact Michael Gaughan at 215-585-4389, or michael.gaughan@pnc.com.

Click here to review the PNC General Disclosure.