International Leadership of Texas (ILTexas) has successfully closed on the sale of the largest bond issuance in the charter school sector history. Pricing was held on June 4^th, and included the Series 2025A and 2025B bonds, with a combined total of $489 million par sold. 

This issuance adds to ILTexas' growing leadership in the market, as the organization now holds the first, second, and third largest charter school bond sales on record. It also marks the first bond sale under the leadership of CFO, Lisa Pepi, who joined ILTexas in late 2024. This milestone would not have been possible without the vision of ILTexas Founder and CEO Edward (Eddie) Conger, and the unwavering support of the ILTexas Board of Directors, whose leadership continues to drive innovation both in the classroom and in ILTexas’ financial strategy. Mr. Conger has not only built a compelling narrative around ILTexas' unique mission and national impact (preparing students for exceptional leadership roles in the international community by emphasizing servant leadership.... and mastering the Chinese language, which is a critical national security language, and having the largest Marine Corps JROTC program in the country) but also cultivated an outstanding relationship with the investor community—helping bridge the gap between education and capital markets with authenticity and vision.

The bonds were issued with the support of the AAA-rated Texas Permanent School Fund (PSF) Guarantee and ILTexas' underlying Moody's Baa3 rating, which the organization successfully maintained despite broader financial pressures across the charter sector in 2025. The transaction was priced during one of the busiest weeks in municipal bond market history—representing the second highest volume ever recorded—underscoring the strong demand and investor confidence in ILTexas’ credit.

Series 2025A received more than 80 individual investor orders, a noteworthy level of engagement in the charter school space and a testament to the success of the marketing strategy implemented by CFO, Lisa Pepi, in coordination with ILTexas’ Municipal Advisor Team - Masterson Advisors LLC, and the underwriting team. The all-in true interest cost (TIC) for the Series 2025A bonds was 4.99%, reflecting strong market reception and efficient execution. This broad participation not only reflects institutional confidence but also validates the approach taken to position ILTexas' credit story with clarity and discipline. In addition, the Series 2025B soft put bonds represent the first time a charter school has issued tax-exempt, soft put debt, in a public offering rather than a private placement, or as taxable bonds—further expanding market access and setting a precedent for other charter operators nationwide.

Masterson Advisors LLC, and Hunton Andrews Kurth LLP (ILTexas Bond Counsel) played key roles in supporting the innovative vision of the ILTexas team, helping turn complex ideas into legally sound, executable market strategies. The transaction also benefitted from the legal guidance of Orrick, Herrington & Sutcliffe LLP, who acted as disclosure counsel—ensuring compliance and transparency throughout the process. PNC Capital Markets and Hilltop Securities served as senior managers for the transaction.

Proceeds from the bonds were used to:

• Refinance over $430 million in existing debt, generating $40.6 million (9.6%) in net present value savings—dollars that will stay within ILTexas and be redirected toward student instruction and classroom support;
   
• Paydown outstanding balances on short-term credit lines to improve liquidity
   
• Support capital projects for campus development; 

Earlier in the year, ILTexas also defeased a portion of its Series 2015A bonds, removing those liabilities from its financial statements and reducing future debt service obligations. This strategic move not only enhanced the organization's long-term financial position but also improved key credit metrics, reinforcing ILTexas' commitment to prudent fiscal management.

With this transaction, ILTexas continues its commitment to delivering high-quality, leadership-based education to approximately 26,000 students across 26 campuses. Our mission is to prepare students for exceptional leadership roles in the international community by emphasizing servant leadership, fluency in English, Spanish, and Mandarin Chinese, and the development of mind, body, and character. All ILTexas students graduate trilingual—proficient in English, Spanish, and Mandarin Chinese, the latter identified as a critical national-security language—reflecting a deliberate strategy to bolster U.S. competitiveness in diplomacy, economics and intelligence.  

"When we save millions in debt service, that’s money going right back into our classrooms—into teachers, programs, and resources for our kids," Mr. Conger added.