The Connecticut Health and Education Facilities Authority sold $14.2 million in bonds to finance renovations at an exclusive boarding school in the state.
The bonds mature between 2029 and 2043, yielding between 2.66% and 4.04%. They received a rating of A1 from Moody’s Investors Service.
The bond proceeds will finance renovations at two existing dormitories and the construction of a new residence hall at the Loomis Chaffee school. They will also fund other building renovations, campus security and drainage improvements, and soccer field repairs, among other projects.
“The assignment and maintenance of the A1 rating is based on the school’s strong market position as a highly selective private boarding and day school located in Windsor, CT.,” Moody’s analysts wrote.
The issuance comes amid soaring demand for the prep school, which charges almost $70,000 in tuition for boarding students and more than $50,000 for day students. The school’s acceptance rate fell to 17.2% for the 2023-24 school year, with applications reaching an all-time high, according to the official statement accompanying the sale of the bonds. Just five years ago, the school’s acceptance rate was 29.4%, according to the bond documents.
“While the School has a long history of strong applicant demand, over the last five years the School has experienced increased interest, and as such has been more selective in its admission process,” the bond documents read.
The bonds are special obligations of the authority, payable by the school.
Stifel Nicolaus & Company, Inc served as underwriter on the issuance, purchasing the bonds for $15.3 million. The price reflected a premium of more than $1 million. PFM Financial Advisors LLC acted as financial advisor.