A school district southwest of Chicago, Illinois, sold $79.4 million in bonds to finance various capital improvements.
The bonds, issued by Joliet School District Number 86, mature between 2031 and 2049, yielding between 2.86% and 4.25%. They received an insured rating of AA from S&P Global Ratings and an underlying rating of Aa3 from Moody’s Investors Service.
“The Aa3 issuer rating reflects the district’s healthy reserves that will remain solid given well-managed financial operations,” Moody’s analysts wrote.
The bond proceeds will fund a variety of improvements across the district’s 19 schools. These include ceiling and lighting projects, asbestos abatement, roofing maintenance, restroom remodeling, and other initiatives.
The upgrades will improve a school district in which a significant percentage of students rely on federal assistance programs. In 17 of the district’s 19 schools, 100% of students are eligible for free or reduced-price lunch. Per capita income in the school district is around 60% of both county and state levels, according to the official statement accompanying the sale of the bonds.
Following the issuance, the district has $126 million in general obligation debt outstanding, according to the official statement accompanying the sale of the bonds.
The school district enrolls 9,522 students in a county 40 miles southwest of Chicago. The bonds are general obligations of the school district, backed by its full faith and credit and secured by all of its available revenue.
Raymond James & Associates, Inc served as underwriter on the issuance. PMA Securities, LLC acted as municipal advisor.