High-performing Charter Management Organizations (CMOs) needed to access bond markets after the market collapse of 2008. Bonds issued on behalf of charter schools are perceived as a higher risk than those issued on behalf of traditional public schools, but usually receive less funding for facilities. General market challenges after 2008 further restricted financing options for CMOs
CMOs are critical partners in developing and demonstrating new approaches to achieve better outcomes for all students in the broader education system. We aim to eliminate financing disparities between traditional public schools and charter public schools to ensure the long-term stability of CMOs as well as signal charter sector soundness and support to capital markets.
Top-ranked school system serving low-income students as part of a larger, national network
Foundation Focus: provide affordable facility financing to high performing CMOs
Partial backstop guaranty on partners’bonds
Date: October 2009
Co-Guarantors: Local Initiatives Support Corporation (LISC)
Associated funding: grant to LISC to serve as financial intermediary