A school district in the suburbs of Minneapolis issued $238.4 million in bonds to make upgrades to its facilities.
The bonds, sold by Osseo Area Schools, mature between 2025 and 2044, yielding between 2.49% and 3.88%. They received a rating of Aa1 from Moody’s Investors Service.
“The Aa1 issuer rating incorporates the district’s strong resident income, robust full value per capita and solid prospects for enrollment growth given its location in the Twin Cities metropolitan area,” Moody’s analysts wrote.
Enrollment in the Osseo Public School District fell during the COVID-19 pandemic, but it has recovered faster than in many other U.S. school districts. The district projects its student body for next academic year to include 20,653 students, compared to 20,680 in 2019-20, according to the official statement accompanying the sale of the bonds.
The bond proceeds will fund the construction of a new elementary school and an addition to the district high school to address population growth in the district. They will also finance classroom, library, and security improvements, among other projects.
“This need is really to provide necessary classroom space to reduce class sizes and meet the growing enrollment challenges that are coming,” Osseo Superintendent Cory McIntyre told local station CCX Media in December 2022.
The Osseo Public School District includes 27 school buildings in suburbs northwest of Minneapolis, including the city of Osseo. The bonds are general obligations of the school district, backed by its full faith, credit, and taxing power.
J.P. Morgan Securities LLC served as lead underwriter on the issuance, purchasing the bonds for more than $263 million. Ehlers and Associates, Inc acted as municipal advisor.