A school district in the suburbs of Cleveland, Ohio, issued $102 million in bonds to build a new high school and make improvements to other schools in the district.
Brunswick City School District’s issuance included serial bonds and term bonds. The serial bonds, consisting of $13 million, mature between 2024 and 2043, with yields between 2.92% and 3.79%. The first term bond, consisting of $11.6 million, matures in 2048 and yields 4.125%; the second, consisting of $24.75 million, matures in 2053 and yields 5.25%; the third, consisting of $51.9 million, matures in 2060 and yields 5.5%. The securities received an underlying rating of A1 from Moody’s Investors Service and an insured rating of AA from S&P Global Ratings.
The rating “reflects the district’s material growth in reserves and liquidity following two years of audited surpluses and an expected $7 million general fund surplus in fiscal 2023,” according to Moody’s.
When completed, the new high school will mark the culmination of a generational investment in Brunswick City School District facilities. The existing high school has “largely exceeded its lifespan,” according to the school district’s website.
In 2017, the district began building a new middle school, which opened in the fall of 2020. It replaced two middle schools which had fallen into disrepair and were considered to be in among the worst condition in the state.
Brunswick is a town of 35,000 southwest of Cleveland. The bonds are general obligations of the school district, backed by its full faith and credit.
RBC Capital Markets, LLC served as underwriter on the issuance, purchasing the bonds for more than $113 million. The price reflected a net issue premium of $12.6 million.