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USD 261 approves $77.61 million bond sale after S&P upgrade; proceeds to fund capital projects
Summary
The Haysville USD 261 school board unanimously approved a bond resolution authorizing the issuance and sale of general obligation refunding and school building bonds (Series 2025-A). Stifel reported a strong sale after S&P raised the district's rating; closing is scheduled for July 1.
The USD 261 Board of Education on a 4-0 vote approved a resolution authorizing the issuance, sale and delivery of the district's general obligation refunding and school building bonds, series 2025-A, after Stifel presented the results of the district's bond marketing and rating work.
Stifel managing director Steve Sjogren told the board the district marketed $77,610,000 in principal (the full authorization from the ballot was $79,000,007.25) and that strong investor demand and an S&P Global upgrade to A+ produced better-than-expected pricing. Stifel reported orders totaling about $185 million during the order period; the firm tightened yields and produced an average true interest cost of 4.442%. The bonds are insured by Assured Guarantee Municipal; insurance added a small premium but helped market reception.
The district will receive net sale proceeds and expected reinvestment earnings to fund the projects authorized by voters. Stifel estimated a preliminary reinvestment return near 3.8% on proceeds held to a multiyear draw schedule, producing an additional estimated $6.25 million in available project funds under current market assumptions; the firm described that figure as illustrative and subject to market movement. Stifel said the district's sale generated roughly $4.17 million of premium-plus-proceeds at pricing reported in the meeting packet, producing an initial project fund near the board's target. Closing was scheduled for about July 1.
Board members asked for clarification about the choice to issue slightly less principal than the ballot authority; Stifel said the team reduced the principal issued (about $2.1 million of authorization left unissued) to keep the projected mill levy within the board's published target. Stifel noted the remaining authorization does not expire and could be used later if valuation or other fiscal conditions make additional issuance appropriate.
President (unnamed) moved the bond resolution; Board Member Jennifer moved, Board Member Courtney seconded, and the motion passed 4-0. The board authorized administration and bond counsel (Gilmore & Bell) to complete documents and to proceed to closing.
