Charter schools and the Build America Bond market still have yet to merge after book-runner PNC switched gears in a recent $33.7 million sale for Sabis International Charter School and ended up pricing traditional tax-exempt bonds rather than the BABs they had originally planned.

Bankers at PNC said investors shied away from BABs on the transaction due in part to limited charter-school liquidity and name recognition. In the end, tax-exempt financing won out as the cheaper borrowing tool, since the necessary yields to attract taxable investors were too high for Massachusetts-based Sabis.

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