HOUSTON, TX (May 19, 2015)—USCA Municipal Advisors LLC acted as Financial Advisor on $77,080,000 of refunding bonds for KIPP Academy (Knowledge is Power Program) through the City of Houston Higher Education Finance Corp. KIPP is the first charter school system in the State of Texas to sell bonds through a competitive sale process.
The KIPP concept began in 1994 when two teachers, Mike Feinberg and Dave Levin, launched a fifth-grade public school program in inner-city Houston, after completing their commitment to Teach For America. In 1995, Feinberg remained in Houston to lead KIPP Academy Middle School, and Levin returned home to New York City to establish KIPP Academy in the South Bronx. These two original KIPP academies became the starting point for a growing network of schools that are transforming students in educationally underserved communities and redefining the notion of what is possible in public education.
KIPP Houston is a family of academically rigorous, college preparatory public schools in Houston serving at-risk students in grades pre-kindergarten through twelve. KIPP Houston has grown from one public middle school to 22 public, pre-kindergarten through 12 charter schools serving more than 11,500 students. Despite KIPP Houston’s extraordinary student growth, it has consistently achieved academic performance among the very best in Houston and across the country. KIPP Houston currently has more than 10,000 students on its waitlists.
U.S. Capital Advisors’ Public Finance unit, USCA Municipal Advisors served as financial advisor to KIPP Houston. Andrews Kurth LLP and attorney and partner Thomas Sage worked as bond counsel. “Being able to sell these bonds competitively confirms the acceptance of these transactions in the finance community and really shows how far charters have come over the past 15 years,” said Lewis Wilks, Managing Director at USCA Municipal Advisors.
The 30-year bonds were sold at a true interest cost of 3.84% years and generated for KIPP net present value savings $8,740,397 or 13.49% and cash flow savings of $14,614,378 or 22.56%.
About U.S. Capital Advisors LLC
Based in Houston, Texas with additional offices in Dallas and Austin, U.S. Capital Advisors ("USCA") is an integrated financial services boutique with primary business lines in Wealth Management and Capital Markets. USCA's Wealth Management division provides a full range of advisory services and solutions to high net worth individuals and family offices. USCA's Capital Markets division, which includes the firm's, Equity Research, Institutional Client, Investment & Merchant Banking, and Public Finance businesses, advises corporate, institutional and municipal clients. USCA was founded in 2010 and is privately owned. Securities offered through USCA Securities LLC, member FINRA/SIPC; Investment advisory services offered through USCA RIA LLC and USCA Asset Management LLC; Municipal advisory services offered through USCA Municipal Advisors LLC, member MSRB.
Senior Managing Director, Head of Municipal Securities