Kevin T. Taylor, Chief Executive Officer, introduced City on a Hill’s real estate consultant, Lisa Desfosses, who will be presenting information at the meeting about City on a Hill’s debt refinancing with Boston Private.

Taylor shared that COAH’s goal is to refinance the existing $4.6M Boston Private debt by maturity date with affordable debt and manageable covenants. He shared that the debt matures in May 2021 and requires Board approval to move forward with Boston Private. 

Desfosses shared a planning process to navigate the debt refinance, including a month by month timeline to find potential lenders. She shared that City on a Hill consulted with several lenders regarding refinancing the Circuit Street debt. These lenders declined to refinance.

She shared feedback of City on a Hill’s strengths from the lenders, including long standing charter existence, new, strong leadership, and serving high need communities. The lenders declined to refinance due to non-compliance with financial covenants and forbearance agreement, enrollment decline, and academic results.

Desfosses shared that Boston Private is offering City on a Hill a two-year term, aligning with COAH’s probationary period and maturing on July 1, 2021. Terms of this proposal include, but are not limited to, requiring COAH Foundation to continue to guarantee the loan in full as well as DESE approval. 

Implications of the Boston Private Proposal include, but are not limited to, not allowing for Circuit Street improvements funded through debt at this time, ongoing partnership with the bank, as well as the loan coinciding with COAH’s reauthorization timeline. 
 

The Board discussed the guarantee term of the Boston Private Proposal. Desfosses shared that the guarantee would require the school to pay for the debt service if the Foundation could not meet the terms of the loan. 

The Board asked Desfosses to break down the debt covenant ratio. Desfosses shared that the school must meet the debt covenant ratio each year in order to prove to the lender that COAH can make payments. The Board discussed City on a Hill's history meeting the debt covenant in the past, along with plans to budget conservatively in the future to ensure that number is met. 

Taylor shared that the implications of the proposal will affect COAH when students resume school in person. The proposal does not allow any Circuit Street improvements funded by debt. 

Andres Tejeda Soto, Finance Committee Chair, shared with the Board that he has met with Desfosses extensively and feels very confident in moving forward with Boston Private's Proposal. 

Jordan Pina, Chief of Staff, shared brief announcements with the staff. She shared that Board members should be receiving an email this week to update their contact information for the new year.

Pina also shared details regarding City on a Hill's upcoming Development Event with TRILLFIT, a local business, on February 25 at 6 PM.