A school district in the suburbs of Cleveland, Ohio, sold $65 million in bonds to fund capital improvements.
The bonds mature between 2024 and 2060, yielding between 2.58% and 4.29%. They received a rating of Aaa from Moody’s Investors Service.
“The Aaa issuer rating reflects the district’s strong economic fundamentals that is rooted in its position as an affluent suburban Cleveland (Aa3 stable) district with above average resident incomes and per capita wealth characteristics,” according to Moody’s.
The bond issuance will fund a significant renovation of the Beachwood schools. The securities will finance the construction of two new elementary school buildings and renovation to an early childhood center. The first new elementary school building will open in fall 2026, and the second will open in fall 2028. Renovations at the early childhood center will be completed for the 2024-25 school year.
Voters authorized the bonds in a referendum in May. The proposal passed with 62.5% of the vote.
The bond issuance will cost residents of the school district $138.25 per year for each $100,000 of appraised property value. The bonds “will be a benefit to both our residents and a worthy economic development tool to assist our business community,” Beachwood Mayor Justin Berns said in a statement.
The bonds are general obligations of the school district, backed by its full faith and credit and payable by all of the district’s available resources, including property taxes.
Stifel, Nicolaus & Company Inc served as underwriter on the issuance, purchasing the bonds for $68 million. The price reflected a discount of $350,000 from the aggregate initial offering price.