Baird secured approximately $27.4 million in bond financing for Union Day School. The transaction refinanced the School’s outstanding Series 2018 bonds and financed the construction of a new academic and athletic facilities on its existing campus. Proceeds also funded a debt service reserve fund and capitalized interest to support the School during the construction period. While also generating cash flow and present value savings, the refunding of the School’s 2018 Bonds provided an opportunity to restructure the School’s debt to reduce budgetary annual debt service burden. The Bonds were structured with a 10 year “bullet” maturity to take advantage of lower interest rates on the shorter end of the yield curve. This provided the School with a meaningful reduction in its annual debt payment and the flexibility to refinance the bonds as soon as 2033, well in advance of the 2036 bullet payment.
Baird developed and executed a targeted marketing strategy that highlighted Union Day School’s long operating history, healthy balance sheet, and expansion plans. The bonds were marketed to a broad base of institutional investors. Ultimately, two different investors purchased the Bonds resulting in a True Interest Cost of 5.72%.
Bond proceeds financed the construction, furnishing, and equipping of an approximately 26,400-square-foot building on Union Day School’s campus in Weddington, North Carolina. The expansion includes a gymnasium and assembly space, seven new classrooms, science laboratory space, student support areas, additional parking, and related site improvements.
The project expands the School’s instructional and extracurricular capacity while enhancing the student experience through dedicated athletic and gathering space. Upon completion, the expanded campus is expected to accommodate approximately 975 to 1,000 students.
Union Day School is a public charter school serving students in grades K-12. Since opening in 2016, the School has grown to approximately 640 students. The School is the first and only charter school in North Carolina to offer the International Baccalaureate programme to students in grades 6-12. The Series 2026 financing supports the School’s continued growth and long-term commitment to providing a rigorous, college-preparatory educational experience.
