A school district in the suburbs of Minneapolis, Minnesota, issued $300 million in bonds to improve its schools.
The bonds mature between 2026 and 2044, yielding between 3% and 4.33%. They received an underlying rating of Aa2 from Moody’s Investors Service.
“The Aa2 issuer rating reflects the district’s favorable location in the Twin Cities metropolitan area, positive enrollment trend, strong adjusted resident income levels and solid full value per capita,” according to Moody’s.
Voters approved $493 million in bonds, including those issued this week, in a May referendum. The measure marked the largest voter-approved public school funding commitment in Minnesota history.
The bonds will finance a series of capital improvements to the Rosemount-Apple Valley-Eagan independent school district, including the construction of a new middle school and elementary school. They will also pay for renovations to a district high school. Each of these projects is located in the town of Rosemount.
Rosemount has grown rapidly in recent years. Its population grew 50% over the past decade, and the city expects it to increase another 90% by 2030, leading to a projected increase in demand for education.
The school district, located about 15 miles south of the Minneapolis metropolitan area, serves almost 30,000 students. The bonds are general obligations of the district, backed by its full faith and credit.
Jefferies LLC served as lead underwriter on the issuance, purchasing the bonds for $311 million. The price reflected a premium of $11 million.