Monthly Newsletter

Charter Schools Info

Charter Schools Funding

Affiliate Websites

Referral Services

Site Map

Contact Us

Providence Financial



Have you ever been on a bad blind date? I’m talking about a really bad one. I can recall one where my blind date and I barely spoke ten words through the whole evening, and we were at a party! She was so ugly that she had to sneak up on a glass to get a drink! She was so buck-toothed that she could eat a sandwich through a Venetian blind! I would hate to hear what she was telling her friends about me! It was a bad experience, but I still had to pay.

There are few things as frustrating as paying for goods or services and wondering afterward whether you got a reasonable value for your money. Most of us can remember a toy we loved as a child that broke the day after we received it. Dining out is often a disappointing experience, but we usually pay for the dinner anyway and walk out of the restaurant grumbling about the food.

It is even more difficult to measure the value of intangibles that we have paid for. A prime example of something that is hard to determine value for the price paid is consulting fees. In the September issue of this newsletter, I discussed the results of a survey I did concerning the high costs of charter school facilities financing. Recently, I got the bright idea to compare the costs incurred by schools that got financing through Providence Financial Company as compared to the averages that I calculated from my research. Of course it is obvious to you by now that the comparison was favorable, or it would not be contained in this article! Here are the results:

At this point, it is tempting to say that either yours or someone else’s fees and costs are lower than the PFC client’s above, but remember these are average numbers that include challenging schools as well as very strong ones. It is also important to remember that the fees and costs are multifaceted. For example, I consulted on a financing this past summer that, due to circumstances beyond my control, resulted in a coupon rate that I was somewhat disappointed in. However, I was able to save that school 2.25% on the underwriting fee they paid as compared to that quoted by the same underwriter to other clients where I was not involved.

Just today, I received news that we have gotten a school approved for a floating rate that is 4.335% in today’s market. That is a great rate and the fees are very fair. However, no one can be sure they got the absolute best deal in the country at any given time. Just as it seems that the other guy’s stock always goes up higher than yours, so it seems that when you hear about other school’s financing it sounds better than yours.

In arranging facilities financing, we can only do the best we can under the circumstances and at the time we are arranging the terms. Further, it makes good sense to get the help of an expert, especially where he has demonstrated tangible results that are well worth the price of his services. If you are going to look into financing a facilities acquisition soon, I’d love to help.

Phone: 801-299-8555
Email: brent@providencefinancialco.com