Holmen district awards $24.75 million school facility bonds at 4.02% interest

The Holmen School District accepted bids and approved the final sale of $24,750,000 in general-obligation school facility improvement bonds, series 2025, as the last issuance tied to the district’s November 2022 capital referendum.

Julie Homan, executive director of finance and operations, introduced the item and said the sale occurred the morning of the meeting. Eric Case, director of public finance with PMA, said the district received nine bids and recommended BOK Financial Securities as the winning bidder at a 4.02% rounded interest rate. “The recommendation for the winner is BOK Financial Securities at 4.02%,” Case said.

The bond sale completes the district’s $74.75 million capital referendum borrowing, after two earlier issuances in 2023. Case said maturities begin with principal payments on April 1, 2026, and the debt is scheduled to be retired in 2044 unless paid earlier; all principal after 2033 will be callable, allowing future boards to refinance or pay down principal without penalty.

The district received a stable AA2 credit rating for the issuance, the same rating as prior issues, Case said. Funds from the sale are expected to be deposited on Feb. 18, 2025, after closing and tax-exempt certification by counsel. Case noted the bid total — nine — was lower than his team’s historical average but said it reflected the market’s view of the district’s credit and the work staff did to prepare materials and a rating call.

The resolution awarding the sale appeared on the meeting’s consent agenda and was approved by voice vote as part of the consent package.

Questions from board members were not raised during the presentation. The district’s debt-service levy (Fund 39) will be updated to reflect the new issue, Homan said, and the levy will be set to cover principal and interest as required by statute.