The Grand Rapids Public Schools district sold $94.7 million in bonds to finance improvements to school buildings.
The bonds mature between 2025 and 2049, yielding between 2.76% and 3.97%. They pay interest at 5%. The securities received an insured rating of AA from S&P Global Ratings, which assigned an underlying rating of A+.
The proceeds will fund upgrades to buildings such as libraries and auditoriums and the development of sites for future school facilities.
Last November, voters in the school district authorized $305 million in bonds for such purposes. The measure, which passed with 75% of the vote, was far more successful than Grand Rapids Public Schools’ last bond proposal. In 2015, voters in the school district approved $172 million in bonds with 52% of the vote.
Grand Rapids Public Schools Superintendent Dr. Leadriane Roby said in a statement that the approval “means a better education for our young people for generations to come.” The Series 2024 issuance is the first under that authorization.
Grand Rapids is the second-largest city in Michigan, located about 30 miles inland of Lake Michigan in the state’s southwest. The bonds are general obligations of the city’s school district, backed by its full faith and credit.
Stifel, Nicolaus & Company, Inc served as lead underwriter on the issuance. PFM Financial Advisors LLC acted as municipal advisor.