A community college in Flint, Michigan, sold $34.6 million in bonds to finance capital improvements and refund previously issued securities.
The bonds, sold by Charles Stewart Mott Community College, mature between 2025 and 2044, yielding between 3.05% and 4.02%. They pay interest at 5%. The securities received an insured rating of AA and an underlying rating of A+ from S&P Global Ratings.
The community college was founded in 1923 by the Flint Board of Education. Its enrollment has grown tremendously in the century since, to 4,490 students in the 2023-24 academic year, according to the official statement accompanying the sale of the bonds.
The college will use the issuance proceeds to make improvements to its buildings and to refund bonds that it sold in 2014.
The bonds are general obligations of the college, backed by its full faith and credit. It recorded $31 million in operating revenue last fiscal year, almost entirely from tuition and fees. The college also received $25.1 million in appropriations from the state, $22.4 million from property tax collections, and $7.5 million in other revenue.
PNC Capital Markets LLC served as lead underwriter on the issuance, purchasing the bonds for $37.5 million. PFM Financial Advisors LLC acted as municipal advisor.