Investment Banking - Pennsylvania School Boards Association Insurance Trust

Transactions | Insurance

Client: Pennsylvania School Boards Association Insurance Trust
Industry: Insurance
Transaction Type: Private Placement Debt
Role: Financial Advisor

  • Pennsylvania School Boards Association Insurance Trust (Trust) is the holding company for School Boards Insurance Company of PA, Inc. (SBIC) and School Claims Services, LLC (SCS), all of which are headquartered in Mechanicsburg, PA. Founded in 1971, the Trust has relationships with approximately 600 Pennsylvania school districts, community colleges, intermediate units and vocational schools.
  • The Trust intends to use the net proceeds from the capital ra ise to fund its BUCS unemployment program. In 1978 the Trust established the BUCS program to allow the association’s members to opt-out of the state unemployment compensation fund and have claims professionally administered through the BUCS program.  Due to the poor economic environment, unemployment claims from participating member school districts resulted in a forecasted cash flow that exceeded the liquidity position of the BUCS program, requiring the Trust to raise capital to fund its liquidity needs.
  • The Firm acted as exclusive financial advisor to the Trust in connection with the $12 million capital raise.