Property Type:
Catholic High School
Location:
Bloomfield Hills, MI
Objective:
Pay for a new gymnasium, renovate the existing gymnasium into a multi-use facility, and upgrade technology
Financing Amount:
$7.05 million
Sources of Funding:
Tax-exempt bonds enhanced by a bank letter of credit
Other factors:
A strong alumnae and alumnae parent network has pledged funds to a capital campaign. Strategic investment of the project fund will provide additional income.
Closing Date:
May 31, 2007
Background & Goals
Founded in 1959, Marian High School’s academics and athletics have evolved over time while maintaining a standard of excellence that has 100 percent of its graduates receiving acceptance to college. Its theater department is internationally recognized, and the all-girls school offers rigorous academic programs and numerous athletic teams.
To further its exceptional reputation and adapt its campus to offer new athletic and technology opportunities, Marian High School embarked on a strategic plan and a capital campaign to build a new gymnasium and update technology.
Sources of Funding & Outcome
The school has a very strong balance sheet and a dedicated alumnae network. Lancaster Pollard articulated these excellent credit factors to help Marian High School obtain an “A+/A-1” bank letter of credit to enhance a $7.05 million bond issuance.
The financing funds renovations to the existing multi-use gym and theater facility, which will enhance arts programming. The internationally-recognized theater company previously shared space with and worked around the schedules of three basketball teams, three volleyball teams and other events. Marian High School’s technology upgrades include voice and data wiring to all classrooms and phone and voicemail systems throughout the entire building.
The tax-exempt bonds will be repaid from operations and funds raised through a capital campaign. Additional funds will come from interest on the capital campaign monies, which are being strategically invested to take advantage of the arbitrage opportunities the school has as a nonprofit borrower.
