Brainerd board authorizes sale of refunding bonds to Raymond James

At a regularly scheduled meeting, the Brainerd Public School District school board voted to authorize a resolution awarding the sale of general obligation school building refunding bonds to Raymond James.

A representative from Ehlers summarized the bond sale, which occurred that morning. “The low bidder was, Raymond James out of Florida, and that was at, 2.7,” the presenter said, adding that a presale estimate had been 3.24% and that the district planned to put funds held in its debt service fund into escrow to lower principal and achieve savings. The presenter said seven bids were received.

Board members asked procedural questions about signatures and timing for final documentation; staff recommended electronic signatures so documents could be completed before the meeting reconvened the next day. After brief discussion, a motion to approve the sale and award the transaction to Raymond James was moved, seconded and approved by roll call.

The presentation described the transaction as a refunding aimed solely at achieving savings rather than restructuring the district’s debt schedule. Staff also said the district’s solid rating had been affirmed by the rating agency as part of the process. The presenter said additional closing documents would be signed when the meeting reconvened.

Procedure and next steps: the board authorized the resolution needed to move the refunding forward and took a roll call vote to approve the sale. Staff indicated the final documentation and electronic signature steps would be completed during the reconvened session.

The board recessed and will reconvene the meeting the following evening to finalize any remaining paperwork and continue the agenda.