A school district in southeastern Louisiana issued $35 million in bonds to acquire and improve land and buildings within the district.
The bonds, issued by St. Tammany Parish Wide School District, mature between 2025 and 2043, with yields ranging from 2.75% to 4%. The bonds received a rating of AA from S&P Global Ratings.
“The Bonds are being issued for the purpose of (i) acquiring and/or improving lands for building sites and playgrounds, if necessary, including construction of necessary sidewalks and streets adjacent thereto; purchasing, erecting and/or improving school buildings and other school related facilities within and for the District, and acquiring the necessary equipment and furnishings therefor,” according to the official statement accompanying the sale of the bonds.
The issuance comes amid parish-led efforts to improve the school district. In 2018, it initiated a capital improvement plan that seeks to make investments in infrastructure, education, and transportation, among other things. The securities sold this week constitute the sixth and final issuance under a 2019 referendum that authorized $175 million in bonds to improve the school district, which consists of 56 schools and a total enrollment of 37,000 students.
The bonds will be general obligations on the district, backed by its full faith and credit.
Robert W. Baird & Co, Inc served as lead underwriter on the issuance, purchasing the bonds for $38 million. The price reflected a premium of $3 million.