A school district in Green County, Wisconsin, sold more than $85 million in bonds to refund a previous issuance.
The bonds, issued by Monroe School District in southern Wisconsin, mature between 2025 and 2043, with yields between 3.13% and 4.23%. The bonds received a rating of AA from S&P Global Ratings.
The bonds were authorized in a referendum in November of last year that authorized up to $88 million in bonds to build a new high school. Later that month, the district issued $88 million in bond anticipation notes (BAN) to provide interim financing for the project. This week’s bond issuance will refund those notes, which mature on June 14.
“The proceeds of the Bonds will be used for the public purpose of current refunding the BANs on their June 14, 2023 maturity date,” according to the official statement accompanying the sale of the bonds.
The district is seeking to acquire land on which it will build the school, which is slated to include a performing arts center. As part of the process, the district will remove its current high school and make improvements to its elementary school.
The issuance comes amid slowly shrinking enrollment in Monroe and Green County. Enrollment fell from 2,340 students at the beginning of the 2018 academic year to 2,228 at the beginning of the 2022 academic year. By 2027, the district projects enrollment to decrease to 2,173 students.
The bonds will be general obligations on the district, backed by its full faith and credit. They will be financed by property taxes levied by Green County.
Robert W. Baird & Co. served as lead underwriter on the issuance, purchasing the bonds for almost $88 million. The price reflected a premium of $3 million.