Keygent provides strategic and technical municipal advisory services to California school and community college districts.
Our distinguishing characteristic is our rigorous quantitative approach, including financial modeling, interest rate analysis, and bond pricing expertise. This knowledge allows us to present multiple financing options for every situation.
Exclusive Focus on California Education
Keygent is a California-based, minority-owned firm serving only California K-14 districts. We neither serve out-of-State issuers nor non-educational entities. This specialization gives us a deep understanding of the nuances in California education bonds.
Independent Municipal Advisory Firm
Keygent serves solely as an independent municipal advisor, with no conflicting interests to compromise our fiduciary responsibility.
Watch some of our educational content
California K-14 districts can elect to have their bonds approved under proposition 39 or Proposition 46. Selecting Proposition 39 or Proposition 46 for a bond election could be a political, facility-related, financial, or timing decision, among others.
While there are many types of municipal bonds such as GO bonds and revenue bonds, these bonds are generally issued as either current interest bonds or capital appreciation bonds. A common misconception is that current interest bonds pay both regular interest and regular principal. This is not true. Multiple current interest bond maturities though could be structured such that principal is amortized more regularly.
A common misconception of CABs is that it’s a balloon payment whereas current interest bonds are not. This is not always true as a current interest bond could also have one large principal payment due out in the future. Similar to current interest bonds, CAB maturities could be structured such that principal is amortized more regularly.
When investors loan bond funds to a municipality, they are expecting a rate of return on their investment. Unlike a mortgage where one bank loans the entire amount to a borrower, in a municipal bond financing there are typically multiple investors who loan funds based on their desired maturity length and other factors.
Many school and community college districts have previously issued bonds in a higher interest rate environment. With interest rates still near historic lows, opportunities to refinance (or refund) debt exist for many districts. In this post, learn more about bond refinancing.
Within the past few years, the concept of the repayment ratio (or debt ratio) has gained traction as a metric for assessing a bond financing’s cost-effectiveness. The repayment ratio is equal to a financing’s total debt service divided by its principal amount. Learn more about bond repayment ratios.
Assessed value (“AV”) is the dollar amount of taxable property within district boundaries on a county assessor’s roll. Taxable property includes residential property such as single family homes, condos and apartments, and non-residential property such as commercial, industrial and agricultural properties. Learn what assessed value is in the blog post.
The Santa Monica LOOKOUT published the article titled, “Santa Monica-Malibu Unified
School District Receives Prime Bond Rating,” which quoted Keygent’s Managing
Director, Anthony Hsieh. Keygent advised Santa Monica-Malibu Unified School District
on a $60 million general obligation bond financing as the third issuance of its Measure