Classical Charter Schools
Baird successfully executes $40M financing supporting development of a new South Bronx campus.
The Financing
Baird secured approximately $40 million in bond financing for Classical Charter Schools. The transaction funded the development of a new facility for South Bronx Classical Charter School V while incorporating capitalized interest to support the ramp-up period of South Bronx Classical Charter School V during the construction of the facility. The structure provides a long-term repayment profile aligned with the life of the facility while maintaining flexibility through an optional call feature.
Despite financing a new campus with no operating history, Baird generated strong investor interest by positioning the credit around the broader Classical Charter Schools network, including a network guaranty, and its demonstrated academic performance and enrollment demand. The bonds were marketed to a broad group of institutional investors, generating over $138 million in orders from 13 different investors, resulting in oversubscription across multiple maturities and repricing to the school’s benefit after the order period.
The Project
The financing will fund the construction and equipping of a new ±44,700 square-foot, five-story facility located at 2758 Kingsbridge Terrace in the Bronx, New York. The building will serve South Bronx Classical Charter School V and is expected to be completed by fall 2028. The campus is designed to initially serve approximately 372 students in grades K-5, with the potential to expand in future years. The facility will be owned by a borrower affiliate and leased to the school, with lease payments structured to support debt service.
Classical Charter Schools Network
Classical Charter Schools is a New York City-based charter school network operating multiple campuses in the Bronx, serving approximately 1,600 students across grades K-8. The network delivers a rigorous classical education model emphasizing literacy, mathematics, and character development. Academic outcomes consistently rank among the highest in New York State, with recent results showing approximately 95% proficiency in ELA and 99% proficiency in math. The network has demonstrated strong enrollment demand and student retention, positioning it for continued growth as it expands its footprint in the South Bronx.