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Santa Fe Public Schools board approves $51 million financing; awards education-technology notes to Stifel
Summary
The Santa Fe Public Schools board on May 14 approved a package of financings totaling $51 million — $40 million in general obligation bonds and $11 million in Education Technology Notes — awarding the ETNs and related lease to Stifel; interest costs were favorable and the transaction is expected to close in a few weeks.
The Santa Fe Public Schools Board approved Resolution 20252026-18 May 14 to award $11 million in Education Technology Notes (ETNs) and to confirm a $40 million general-obligation bond sale, a combined $51 million financing intended to fund district capital projects.
Eric Heron of RBC Capital Markets presented the results of the district's sale, saying the offering was well received and noting the financing structure and costs. "The true interest cost on the general obligation bonds was a 3.48%," Heron stated; he said the $6 million taxable portion of the ETNs came in at a 4.65% TIC and the $5 million tax-exempt portion at a 2.99% TIC. Heron also said the underwriting team received about $140 million of orders for the $51 million offering, allowing the underwriter to lower rates across maturities.
The district reported that all board-approved financing parameters were met. Heron noted the GO bonds include an eight-year optional redemption feature that would allow the district to refund the bonds for savings if market conditions make that practical. He said, subject to tonight's approval, the transaction will close in several weeks and funds will then be available for capital projects.
Board members moved and seconded Resolution 20252026-18, described on the agenda as the award of the Education Technology Notes and lease to Stifel Nicolaus and Company Incorporated. The board approved the award on a voice vote; the meeting record captures the voice votes of "I" in favor and records no opposition, but it does not include a roll-call tally.
The board also recorded a procedural correction at the start of the special meeting: the lease named in the resolution should be to Stifel Nicolaus and Company Incorporated (the agenda initially had a typographical error naming the New Mexico State Treasurer). After the vote the board completed signing of closing paperwork for Mr. Melendres and adjourned to resume the regular board meeting at 5:30 p.m.
The financing supports planned capital work across the district; the board and district staff said funds will be available after closing to move forward on those projects.
