Date: August 2019
Location: Haverford, Pennsylvania
Financing Amount:
$30.6 million
Financing Type: Bond issue
Construction Type: Middle school

One morning this fall, a group of seventh-grade boys trooped to a nearby construction site for a lesson on physical and chemical change. The students attend The Haverford School, a private day school for boys from kindergarten through 12th grade located on Philadelphia’s Main Line. The steel beams and concrete foundation the kids studied that day were soon to become their new middle school.

The new building was partially financed by a $30.6 million public bond issue sole managed by PNC Capital Markets LLC in conjunction with refinancing all of the School’s existing debt.

During an annual relationship review with the School’s CFO in December 2018, the PNC team learned of the need for financing that would allow the School to take advantage of current low rates and lock in a 30-year term. Haverford was also looking for flexibility with different financing structures, specifically financial covenants and security packages.

Working with the School’s financial advisor, PNC presented two viable options for Haverford: a bank loan (PNC Bank, N.A.) or a bond solution (PNC Capital Markets LLC). The client appreciated PNC’s creativity, and the ability for PNC to deliver solutions on an accelerated schedule, no matter which route they chose. Haverford had confidence in PNC based on a relationship that began in 2011 with a $30 million, 10-year loan.

The new middle school will not only provide a laboratory for students to understand construction fundamentals today. It will also give The Haverford School a competitive advantage far into the future.

In discussing the financing, David Gold, CFO, noted, We conducted a competitive process, engaging other banks. In the end, we appreciated PNC’s ability to help us evaluate two options and deliver on a short schedule so we could lock in advantageous interest rates and gain significant flexibility in our structure.