A school district in the suburbs of St. Paul, Minnesota, issued $161.8 million in bonds to replace two of its elementary school buildings and make several other improvements.
The bonds, sold by Stillwater Area Public Schools, mature between 2025 and 2044, yielding between 2.35% and 3.73%. They received a rating of Aa1 from Moody’s Investors Service.
“The Aa2 issuer rating incorporates the district’s economic base, with strong resident incomes and full value per capita,” Moody’s analysts wrote.
The bond proceeds will finance the construction of new buildings for the two oldest elementary schools in the district. They will also fund a new gym at a district middle school and a new entrance at the district high school, and refund securities the district issued in 2015, among other initiatives.
Stillwater Area Public Schools enroll 8,139 students across 12 schools. Enrollment dropped by about 300 students during the pandemic, though it has since returned to a trend of growth.
Following the issuance, the school district has about $180 million in debt outstanding.
The bonds are general obligations of the school district, backed by its full faith and credit and payable by property taxes.
J.P. Morgan Securities LLC served as lead underwriter on the issuance. Ehlers and Associates, Inc acted as municipal advisor.