A rural school district in southeast South Dakota sold $17 million in bonds to finance the construction of a new high school.
The bonds mature between 2025 and 2053, yielding between 2.875% and 4.45%. They received an enhanced rating of AA+ from S&P Global Ratings, which assigned an underlying rating of A+.
The bonds, which were sold by Mitchell School District 17-2, will fund construction of athletic facilities at a new high school in the 15,000-person town of Mitchell. The town has been planning a new campus for its high school for more than a decade. Construction on the project began last year. District officials expect it to complete by February of next year.
Mitchell School District 17-2 enrolls 2,728 students across five elementary schools, a middle school, and a high school. The high school, which was constructed in 1962, is the oldest of the bunch.
The bonds are general obligations of the school district, backed by its full faith and credit. The securities are also supported by a pledge of state aid from the state of South Dakota. The district now has $61.6 million in direct debt outstanding, according to the official statement accompanying the sale of the bonds.
Colliers Securities LLC served as underwriter on the issuance, purchasing the bonds for $17.5 million.