Landmark Academy asks 2010 bondholders to waive hiring consultant

By Wendy Van Sickle

Columbus, Ohio, Nov. 10 – Landmark Academy of Michigan is seeking consents from holders of its series 2010 limited obligation revenue and refunding bonds to waive a requirement under the bonds’ financing agreement to employ a management consultant, according to a notice.

The bonds were issued through the Michigan Public Educational Facilities Authority.

A covenant under the financing agreement requires Landmark to employ a management consultant in the event that 20% or more of the state school aid payable to the academy in any month is insufficient to make that month’s bond payment.

The academy is seeking to waive that requirement as a result of discussions held during a Nov. 5 investor/bondholder conference call.

In light of “topics highlighting strong academic performance, a turnaround of enrollment in FY 2016, finances, state funding levels, management performance and a positive relationship with the authorizer,” Landmark seeks to waive the management consultant requirement until Aug. 31, 2016, the notice states.

In return for the waiver, Landmark is offering to hold a semiannual investor call commencing the first week of May 2016 with a follow-up call in November 2016.

Landmark argues hiring a management consultant would be an undue expense and could damage the academy’s reputation, thereby affecting enrollment. The academy said it expects enrollment to grow over the next couple years.

Holders of at least 51% outstanding principal amount of the bonds must consent in writing to the waiver for it to pass.

U.S. Bank NA (attn: Christine Robinette, christine.robinette@usbank.com) is the trustee.

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