SOURCE: Ziegler

Ziegler

December 20, 2011 12:35 ET

Ziegler Closes $15 Million Lake Charles Charter Academy Financing

CHICAGO, IL--(Marketwire - Dec 20, 2011) - Ziegler, a specialty investment banking firm with a dedicated charter school banking team, is pleased to announce the successful closing of the $15,515,000 Lake Charles Charter Academy Foundation, Inc. transaction. This is the first bond issue for this borrower and the fourth bond issue Ziegler has underwritten for schools managed by Charter Schools USA.

Lake Charles Charter Academy Foundation, Inc. (the Foundation), is a Louisiana 501(c)(3) that holds the charter for Lake Charles Charter Academy (LCCA). LCCA, located in southwest Louisiana, is the first charter school in Calcasieu Parish. LCCA opened in August 2011 in a temporary, leased facility under the management of Charter Schools USA (CSUSA), a for-profit educational management organization based in Ft. Lauderdale, Florida. This is the first Louisiana school managed by CSUSA.

The current financing will fund acquisition of a 10-acre parcel of land and construction costs for a two-story, 60,664 sq. ft. K-8 school facility. Upon completion in fall 2012, the facility will increase the LCCA's capacity to 860 students. Tax-exempt proceeds will fund all project costs as well as a debt service reserve fund sized to maximum annual debt service and approximately six months of capitalized interest. Unlike prior financings for CSUSA-managed schools, Red Apple Development, the for-profit real estate development arm of CSUSA, does not hold title to the property. Red Apple Development served as a construction manager, but the project will be owned directly by the Foundation. As a result, all project costs were funded tax-exempt, although a taxable "tail" was issued to cover costs of issuance in excess of the 2% limit. The project was privately financed and no public taxpayer money was used in the financing.

With Ziegler's expertise in the charter school market and extensive capital markets capabilities, the Foundation met its tight construction timeframe and closed on time. Michael Braun, Senior Vice President in Ziegler's Religion & Education practice, stated, "The Lake Charles Charter Academy financing was the culmination of a five-year strategic plan led by a group of community leaders in Lake Charles, LA. Ziegler was proud to partner with this group of leaders to deliver a school that will distinguish itself as a platform of change for public education in the community."

For further information on the structure and use of this issue, please see the Electronic Municipal Market Access system's Document Archive.
Link: http://emma.msrb.org/IssueView/IssueDetails.aspx?id=ER346437

For more information about Ziegler and please visit us at www.Ziegler.com.

About Ziegler:
The Ziegler Companies, Inc. (PINKSHEETS: ZGCO) together with its affiliates (Ziegler) is a specialty investment bank with unique expertise in complex credit structures and advisory services. Nationally, Ziegler is ranked as one of the leading investment banking firms in its specialty sectors of healthcare, senior living, religion and education finance, as well as corporate finance and FHA/HUD. Headquartered in Chicago, IL with regional and branch offices throughout the U.S., Ziegler creates tailored financial solutions including bond financing, advisory, private placement, seed capital, M&A, risk and asset management. Ziegler serves institutional and individual investors through its wealth management and capital markets distribution channels.

Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client's experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees

This communication does not constitute an offer to buy these securities. The offering is made only by the Official Statement and through an appropriately registered representative. The Series 2011 Bonds may not be appropriate for all investors. Market value and/or accrued interest will fluctuate during the period held, and, if sold prior to maturity, the yield received may be more or less than the yield calculated at the time of purchase. Discounted yields herein are gross yields to maturity. Discounted bonds may be subject to capital gains tax, rates of which will vary, so investors should consult their own tax advisor with regard to their personal tax situation. Interest on municipal bonds may be exempt from federal income tax but may be subject to tax for residents of certain states. For bonds designated AMT, taxes may exist for certain investors. Ziegler will sell these bonds on a principal basis.

The corporation or its officers, directors, stockholders, or members of their families may at times have a position in the securities mentioned herein and may make purchases or sales of these securities. Not all call or put information is identified in the description above. Please be sure to discuss any special features with your Financial Advisor before deciding whether to invest in these securities.

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