Jersey City Community Charter School

CUSIP: 64577BSN5

NAME: Jersey City Community Charter School

COUPON: 5.25% (Series A)

MATURITY: 7/1/2032

BONDHOLDER SECURITY: A revenue pledge of per pupil revenues (made to JCCCS by the Board of Education of the school’s school district of residence through the State of NJ Funding), a Debt Service Reserve Fund funded at Max Annual Debt Service. Additional security is provided by a first mortgage lien on both school facilities appraised at $8,950, 000.00 as of September 7, 2016.

USE OF BOND PROCEEDS: Refinance the school’s outstanding commercial mortgage loans used to acquire the two school facilities, fund a Debt Service Reserve Fund, and to pay costs of issuance.

RATINGS: Baa3 (Moody’s)

OBLIGOR PROFILE: JCCCS is one of the state’s first charter schools founded and authorized in 1997. JCCCS provides education for grades K-8 in two school facilities located in Jersey City, NJ (128 Danforth Avenue and 555-561 Bergen Ave). The School’s current charter was renewed in February, 2016 for a period of five years through June, 30, 2021 – the fourth renewal since its founding.  Subsequent renewals will be for additional five year terms.  Student-teacher ratio is 11:1. Attendance rate is 96%. 2015-16 school year enrollment is 602 with a waiting list of 143 students. State funding trend 2012-2015: +1%, +4%, and +3%, respectively.

Forecast 2017 Debt Service Coverage Ratio is 1.54x; Days Cash on Hand is 54, (minimum coverage covenant = 1.10x, minimum days cash on hand covenant = 30).

(Source: Official Statement, dated October 25, 2016)

 

Although this information is obtained from sources believed to be reliable, we cannot guarantee its completeness or accuracy.  For complete information regarding these bonds, please review the Official Statement, which can be provided upon request.  Investing in bonds involves risk including possible loss of principal.  Income may be subject to state, local, or federal alternative minimum tax.  Offerings are subject to prior sale and market conditions.  Bonds are subject to availability and price fluctuations.  As with any investment, market values may fluctuate during the period the bonds are held.  For specific yield and suitability of this offering, please contact your R. Seelaus & Co. Financial Advisor at 1-800-922-0584. Securities are offered through R. Seelaus & Co. 25 Deforest Ave. Suite 304, Summit, NJ 07901 Member FINRA/SIPC