Transaction Details

GreatHearts Arizona

Municipal

Lead Bookrunner

Founded in 2004 as a nonprofit 501(c)(3) organization, Great Hearts - Arizona operates a network of classical, preparatory K–12 public charter schools committed to improving education through a rigorous liberal arts curriculum. Today, the network includes 21 brick-and-mortar campuses across the state, along with an online school currently transitioning to the Great Hearts National Academy model.

Serving approximately 15,800 students and employing around 1,700 full-time faculty and staff, Great Hearts Arizona continues to be a destination for families seeking a high-quality, value-driven education. With a current waitlist of roughly 4,700 students, demand for enrollment remains strong. The academic performance of Great Hearts students consistently ranks in the top 10% statewide. The Class of 2024 exemplified this success, with 96% of graduates attending college and 78% earning merit-based scholarships, totaling over $51 million in scholarship offers.

Proceeds from the Bonds will support a range of strategic initiatives across the Great Hearts Arizona network. A portion of the funds will be used to finance the construction, renovation, improvement, equipping, and operation of facilities at the Lincoln and Roosevelt campuses. This includes additions to the Existing Lincoln Campus, which is leased by the Borrower and subleased to Archway Lincoln and Lincoln Prep for their respective charter school operations, as well as enhancements to the Existing Roosevelt Campus, which is owned by the Borrower and leased to Roosevelt Prep. In addition, proceeds will fund capitalized interest, establish a debt service reserve fund, and cover certain costs of issuance related to the Bonds.

In June 2025, Great Hearts partnered with Baird’s National Charter School Finance team to complete a $16,850,000 bond financing. The bonds were rated “BBB” from S&P. The market environment was favorable, with a CPI release earlier that morning providing a strong backdrop heading into the order period. Investor sentiment toward the Great Hearts name was overwhelmingly positive, with only hesitations stemming from the relatively modest size of the offering. The team pre-marketed the bonds at an aggressive spread inside 100bps off the scale, which narrowed the pool of participating investors. Despite this, two primary accounts took substantial positions, complemented by partial orders from five additional investors. The 25-, 30-, and 35-year maturities priced at +95 basis points to MMD, while strong demand for the 20-year term allowed for a 5-basis point bump, resulting in final pricing at +90 to MMD. The outcome demonstrated solid investor confidence in Great Hearts’ credit and long-term performance.