The biggest school district in South Carolina sold $278.8 million in bonds to refund a previous issuance.
The bonds, issued by a Greenville County construction program known as Building Equity Sooner for Tomorrow (BEST), mature between 2024 and 2028, yielding between 3.65% and 3.92%. They pay interest at 5%. The securities received a rating of Aa2 from Moody’s Investors Service, which assigned a stable outlook.
“The stable outlook on the long-term ratings reflects our expectation that the district’s financial position will remain strong over the near term given a history of prudent financial management, adherence to strong fiscal policies, and well-developed capital plans,” Moody’s analysts wrote.
The issuance comes as the school district prepares for a projected increase in enrollment. To prepare for that increase, the district’s capital improvement plan calls for more than $100 million in debt to fund projects.
The bond proceeds will refund bonds issued in 2016 that had been scheduled to mature between 2024 and 2028.
The Greenville County School District enrolls almost 80,000 students across 85 schools. The bonds are special limited obligations of the school district, payable by its revenue.
J.P. Morgan Securities LLC served as lead underwriter on the issuance, purchasing the bonds for $287 million. The price reflected a premium of more than $9 million.