SITUATION

Several years of lower than expected enrollment and its effect on school finances led HFCHS to approach CFC in the early spring of 2018 to seek options regarding their existing bonded debt. CFC obtained the services of a registered municipal advisor to assist them in this analysis.

Compounding the HFCHS financial problem was that their existing debt was not callable until 2022, and recent Federal legislation eliminated the school’s ability to advance refund the debt. CFC, along with the registered municipal advisor, sought ways to convert the existing debt into a more affordable conventional loan. Unfortunately, after working with several local area banks, it was determined that none of them could assist in a refinancing plan.

CFC ROLE

CFC then crafted a financial plan and package, financed solely by CFC, that could exist alongside the school’s bonded debt. Now HFCHS could focus on growing enrollment, advancing fundraising efforts, and improving their financial profile in preparation for a successful refinancing of their debt at the call date of the existing bonds.

The implementation of the plan resulted in the immediate easing of financial pressure on the school, allowing them to increase both enrollment and development prospects. This increase, in turn, has resulted in improvement in the school’s finances and outlook. CFC continues to assist HFCHS with financial planning aimed at continuous improvement of their fiscal health and their attractiveness to current and potential donors.

CLIENT REFLECTION

“Holy Family could not be more grateful for the incredible support CFC has extended to our school. Their trust and confidence in our plan, their commitment to an authentic partnership, and of course, their financial investment, has provided Holy Family the breathing room and runway to be strategic, calculated, and forward thinking in our execution of initiatives aimed at growing both our enrollment and our development/fundraising support. CFC has unquestionably been a critical factor in a formula that is now yielding successful results. Holy Family is growing, and CFC has been a significant hand in nurturing and cultivating that growth. We remain grateful.”                                                                                     

Michael Brennan, HFCHS President