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Augusta Preparatory Day School Case Study

Advance Funding for Science

SouthState designed a financing solution for APDS that leveraged its balance sheet, on behalf of the School, to empower an exciting opportunity.

When need and opportunity converged at Augusta Preparatory Day School for a new, $10,200,000 Center for Science and Inquiry, SouthState stepped in to devise a flexible funding vehicle that bridged the time between construction needs and campaign pledge receipts.
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Augusta Preparatory Day School

Augusta Preparatory Day School is an independent, college preparatory school that has served children ages two through twelfth grade from the greater Augusta-Aiken area for over 60 years. Approximately 420 students attend APDS on its beautiful 55-acre campus in Martinez, GA. The School seeks to promote well-rounded, engaged students who embrace personal responsibility, global perspective, and service to others.

The Opportunity

New Science Building

As part of its 2020 Strategic Plan, ADPS committed to improving its science facilities as well as the technology woven throughout its educational delivery. In response, leadership identified a site on campus for a new 19,000 square foot science center. The facility provides updated instructional space to support creative learning and encourage academic curiosity for the School’s twenty first century curriculum.

Respecting its fiscally conservative history, APDS launched a capital campaign to fund the new building. However, given the natural time lag between the start of construction and capital campaign receipts, a funding mechanism was needed to bridge the gap. The School also wanted to protect against the impacts of any cost overruns and/or campaign pledge shrinkage. As such, APDS sought a loan that could be termed out and appropriately repaid over time through operations.
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The Solution

The Solution

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SouthState designed a financing solution for APDS that leveraged its balance sheet, on behalf of the School, to empower this exciting opportunity:
  • Intermediate Term, Fixed Rates. SouthState provided on-balance sheet, competitive fixed rate effective the day of closing.
  • Drawdown Construction Loan. The ability of SouthState to offer a drawdown loan results in not only flexibility on the timing of construction draws, but also in reducing interest expenses during the construction period (versus drawing the funds at closing).
  • Prepayment Flexibility. While the repayment schedule of the loan was designed around projected pledge receipts, SouthState also allows the School to prepay the loan at any time without penalty from internal (charitable or operational) sources.
  • Rebalancing the Loan. Should the School require it, SouthState gives APDS the ability to rebalance or resize the loan’s amortization after the construction period and stretch out the residual payments over a total period of ten years.
  • Relationship Banking. SouthState is honored to maintain a banking relationship with APDS. Within this comprehensive relationship, the Bank’s ability provide consultative services in the independent school space should benefit the School for years to come.
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