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.
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:
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:
Allocation of Callable Securities Your account may contain “callable” securities, which allow the issuer to repurchase or redeem the securities by a specified date. In the event of a partial redemption or call of securities by the issuer, PNC Capital Markets LLC will allocate among its customers, the securities being selected as called, on a fair and impartial basis through a randomized lottery system. If your account contains callable securities subject to a partial redemption or call, the probability of your securities being selected as called is proportional to the holdings of all customers of such securities held in bulk by PNC Capital Markets LLC. Notwithstanding the foregoing statements, PNC Capital Markets LLC will further ensure equitable allocation of the callable securities by excluding itself as well as its interested persons from the lottery system when the redemption is made on terms that are favorable to PNC Capital Markets LLC; and including itself as well as its interested persons in the lottery system when the redemption is made on terms that are unfavorable to PNC Capital Markets LLC.
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