Transaction Details

IDEA Public Schools

Municipal

Lead Bookrunner

$286.9 Million Bond Offering Advances IDEA’s College-Ready Mission

IDEA Public Schools is one of the nation’s largest and fastest growing public charter school networks, having expanded from a single school serving 150 students in 2000 to a system of 145 campuses serving more than 87,000 students across Texas and affiliated regions. With a mission centered on “College for ALL children,” IDEA is dedicated to preparing students from underserved communities to succeed in higher education and beyond. For 18 consecutive years, 100% of IDEA’s graduating seniors have been accepted into college, with a matriculation rate exceeding 99%.

In June 2025, IDEA partnered with Baird’s National Charter School Finance team to complete a $286,940,000 bond offering. The financing was issued through the Clifton Higher Education Finance Corporation and structured as 30-year debt, secured by the Texas Permanent School Fund Guarantee and carrying an underlying A- rating. Baird served as sole managing underwriter for the offering.

Proceeds from the bond issue were used to finance or refinance a range of capital projects across the IDEA network, including the construction or expansion of 11 school facilities and site improvements at 29 existing campuses. A portion of the proceeds was also used to refinance outstanding debt to enhance long-term cost efficiency and capital flexibility.

The transaction followed a favorable Consumer Price Index release, which supported constructive conditions heading into the Bond Sale (Pricing). To lower financing costs, Baird structured the IDEA transaction using an aggressive, all-in 5.00% “coupon approach”, including long maturities in years 25 and 30 totaling approximately $85 million. The structure was notably more cost effective than other similar PSF charter school financings which featured higher coupon structures. Baird’s marketing strategy attracted considerable investor demand, resulting in a strong, diverse “order book” with investor participation from 40 different institutional investors. Final pricing achieved spreads up to 11-30 basis points lower than comparable transactions, with additional lowering of yields of up to 6 basis points on the short end of the curve and 3 basis points on the long end.

In summary, Baird’s disciplined market read and assertive pricing resulted in tighter and lower market spreads and the most cost-effective financing available.