A school district in central Kentucky issued more than $43 million in bonds to finance the construction of a new wellness center, elementary school, and roof for the county’s high school.
The bonds received a rating of A2/A1 from Moody’s Investors Service. They mature between 2024 and 2043, with yields ranging from 3.5% to 4.4%.
The bonds will be backed by revenue from the issuer, the Pulaski County School District Finance Corporation. The corporation will generate rental income by leasing the buildings financed by the bond issuance to the Pulaski County Board of Education.
“The bonds are payable as to both principal and interest solely from the income and revenues derived from the leasing of the school building projects financed from the bond proceeds from the corporation to the board,” according to the official statement accompanying the sale of the bonds.
The issuance comes amid growth in Pulaski’s County’s schools. Over the past two decades, the district’s student population has grown about 11%, and capital outlays on the district have grown at about the same rate. Nationally, enrollment in elementary and secondary school has grown just 3.7% during that period, according to statistics from the Department of Education.
The bonds will add to the corporation’s debt of about $60 million in outstanding principal. The county’s current plan of financing accounts for about 98% of the debt service required for its outstanding bonds.
Robert W. Baird & Co. served as lead underwriter on the issuance.