Case Study:The Out-of-Door Academy

Sarasota, FL

Founded in 1924, the Out-of-Door Academy (“ODA”) is a non-profit, independent college preparatory school and is the second oldest independent school in Florida. At the time of their financing in 2018, ODA’s 5 acre Siesta Key campus served 226 students in grades Pre-K to 5 and its 85 acre Lakewood Ranch campus served 514 students in grades 6 to 12. ODA employed 138 faculty and staff and had an annual operating budget of $17.5 million and unrestricted cash and investment of $23.7 million.

Project Overview

ODA’s project involved borrowing $23.75 million to refinance its outstanding Series 2013 Bonds, fund select new capital projects on its campus properties including construction of a new fieldhouse, athletic fields, Middle School Student Center and other select projects, and fund transaction and other miscellaneous costs associated with the financing.

Financing Overview

ODA’s 2018 financing comprised two series of tax-exempt debt obligations totaling $23.75 million. The Series 2018A Note was structured as a $17.25 million tax-exempt variable rate, non-bank qualified note. Its purpose was to refinance ODA’s outstanding Series 2013 Bonds, fund transaction costs and provide borrower reimbursement. The Series 2018B Note was structured as a $6.5 million tax-exempt variable rate non-bank qualified note, used to finance capital improvement projects and provide borrower reimbursement.

In 2013, Wye River served as financial advisor to ODA to fund a $13.5 million renovation and expansion project. The School sought to construct a new 22,000 square foot visual and performing arts center at its Lakewood Ranch campus, expand and renovate its athletic infrastructure, including an addition to the gymnasium, a track and football/soccer field with stadium seating, tennis courts and new practice fields. ODA also desired to expand and renovate select other facilities at its Siesta Key campus. Wye River assisted in securing a long-term, tax-exempt variable rate demand bond issue, designed so that the School’s annual det service obligation was serviced comfortably by its projected net operating income. Total debt was $13.5 million and included monies to (1) fund all project and financing-related costs and (2) refinance certain existing debt of the School.

Wye River Group’s Role

Wye River had the privilege to work closely with a select group of Board members and management to assess ODA’s debt capacity and plan its project financing. More specifically, our services included:

  • Preliminary project planning including an assessment of debt capacity
  • Developed comprehensive Finance Plan for the Project
  • Coordinated the solicitation, evaluation and selection of candidates to provide banking and underwriting services for the School’s financing
  • Negotiated key terms of the financing with the selected provider
  • Managed the investment of the School’s bond proceeds to assure maximum permitted yield and minimal negative arbitrage

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