Charter School Issuing Unprecedented $350 Million in Bonds
In six short years International Leadership of Texas has experienced unprecedented growth to become the fifth largest charter school system in Texas. Soon, the school will continue breaking barriers by selling approximately $350 million in bonds to purchase 13 ILTexas campuses across the state – believed to be the largest single bond transaction in US history for a charter school. This transaction follows on a $55 million private bond deal in September 2018 to purchase campuses in Grand Prairie and Katy, Texas, and a then record $111 million deal to purchase its original four campuses in 2015.
When ILTexas opened in 2013 it contracted with property developers to build their modern, state of the art campuses. The developers fronted all the costs of site purchase, site development, and campus construction. Then they leased the campuses back to the charter school using leases that provided financial incentives to the school to purchase the schools two – five years after construction. The 2015 bond transaction was the first of these purchase options. The two bond transactions in 2018 are a continuation of that strategy and will result in ILTexas being the sole owner of all its campuses.
“It has always been a part of our plan to buy out these lease-purchase agreements. Our growth between 2016 and 2017 (13 campuses) is what is moving this transaction into the unprecedented territory,” said Chief Executive Officer Dr. Alan Seay. “This is a good deal for the school in that, ultimately, we will realize significant savings paying back the bonds versus continuing to pay for the leases.”
While the growth of the school has created its share of financial challenges for the district, ILTexas’s most recent financial audit showed the school with over a $6,000,000 annual operating surplus. The charter school is not opening any new campuses during the 2018-19 school year, but does intend to continue its growth. With almost 4000 students on its waiting list, it is clear parents continue to want their children to attend an ILTexas school.
About International Leadership of Texas: At International Leadership of Texas (ILTexas) our mission is to prepare students for exceptional leadership roles in the international community by emphasizing servant leadership, mastering the English, Spanish and Chinese languages, and strengthening the body, mind, and character. ILTexas teaches students from a global perspective with the opportunity to become trilingual, graduate with an associate’s degree and study abroad. ILTexas now serves more than 18,000 students with 20 locations spanning across the Dallas-Fort Worth Metroplex, College Station, and Houston. For more information, visit iltexas.org.
