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Pennsylvania School District Sells $35 Mln in Bonds

By Munichain News Desk

A school district in eastern Pennsylvania issued $34.7 million in bonds to finance the construction of a new elementary school and other capital improvements.

The bonds, sold by Northampton Area School District, mature between 2025 and 2046, yielding between 2.9% and 4%. They received an underlying rating of A1 from Moody’s Investors Service.

“The district’s A1 issuer rating reflects its healthy reserve position which is poised for further improvement over the next two fiscal years,” Moody’s analysts wrote. “The rating further reflects the district’s above average resident income, satisfactory resident wealth, trend of modestly declining student enrollment, and moderate but growing leverage,” they added.

The bond proceeds will fund the district’s capital improvement plan, which calls for the construction of a new elementary school and administration center. Those projects will materially impact the amount of money the district needs to borrow, according to Moody’s.

Following the issuance, the district has $150 million in debt outstanding, according to the official statement accompanying the sale of the bonds.

Northampton Area School District enrolls more than 5,000 students across seven schools, including five elementary schools, in a county just north of Allentown. The bonds are general obligations of the school district, backed by its full faith, credit, and taxing power.

Janney Montgomery Scott LLC served as underwriter on the issuance. PFM Financial Advisors LLC acted as financial advisor.

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