The School District of Greenville County, South Carolina, issued $170 million in bonds to finance capital improvement projects.
The bonds mature on June 25, 2024, and yield 3.5%. They pay interest at 5%. The securities received a rating of MIG 1 from Moody’s Investors Service and A-1+ from S&P Global Ratings.
“The rating reflects the district’s expectation of ongoing enrollment increases of about 1,000 students a year, generally balanced operating results, comprehensive budget process and monitoring, and large pension and OPEB liabilities,” S&P analyst Michael Ryter said in a press release, referring to other post-employment benefits.
The issuance comes months after the school district updated its Long-Range Facilities Plan and Capital Improvement Plan to incorporate a projected increase in enrollment. The new plan calls for the acceleration of 11 school improvement projects.
The school district has been rebuilding and renovating its schools for the past two decades. Since 2001, the district has built or begun building 38 new schools and made additions or renovations to 19 schools. During that period, the population of Greenville County has increased by almost 40%, according to the official statement accompanying the sale of the bonds.
Greenville County School District is South Carolina’s largest, covering 809 square miles and enrolling more than 77,000 students. The bonds are general obligations of the school district, backed by its full faith and credit.
Wells Fargo Bank, NA, served as underwriter on the issuance, purchasing the bonds for $171.5 million.