A school district in St. Louis County, Missouri, issued $90 million in bonds to renovate its schools.
The bonds were issued by Parkway C-2 School District, which serves eight municipalities in western St. Louis County. The bonds mature between 2026 and 2043, with yields ranging from 2.21% to 3.85%. They were given a rating of AAA by S&P Global Ratings.
The issuance is the first part of an authorized $265 million bond sale to upgrade the District’s schools. The funding was authorized by voters in the District in a ballot measure in November of last year that passed with 76% approval.
“The District has a long-term capital plan that includes improving District facilities and replacing aging equipment that may require the issuance of additional general obligation bonds. The District anticipates utilizing the remaining voted authorization from the November 2022 election to issue bonds over the next two or three years,” according to the official statement accompanying the sale of the bonds.
Among other projects, the bonds will support classroom technology and network upgrades, constructing an early childhood center, upgrading locker rooms and playgrounds, additions to the District’s buildings, and ADA and safety upgrades throughout the District. The projects will be implemented at each of the District’s 32 schools, and will take place over the next six years. The first project will break ground this summer.
The bonds are general obligations on the District, backed by its property taxes. Interest payments on the bonds will begin on Sep. 1 and will occur every six months thereafter.
Mesirow Financial, Inc., served as underwriter for the bond issuance, purchasing the bonds for around $90 million, reflecting a discount of $340 thousand.