Baird Completes $6M Bond Issue for Loveland City School District

Deal is the First of its Kind in Ohio, Seventh in the U.S.

Baird, an employee-owned, international wealth management, capital markets, private equity and asset management firm, today announced that it has completed a $6 million bond issue for the Loveland City School District. The bonds issued by the District are Qualified School Construction Bonds (QSCBs) provided under the American Recovery and Reinvestment Act of 2009 and carry a 0% interest rate. The deal is the first of its kind to be completed in Ohio and only the seventh to be completed within the U.S. since the stimulus plan was enacted in February.

The $6 million in capital raised by the bond issue will be used to provide energy-efficient upgrades to school buildings such as installing motion and infrared sensors on lighting fixtures so they automatically turn on and off and adding solar panels and a wind turbine to help generate additional power. Projected savings from the energy upgrade are estimated to be more than $425,000 annually, and by financing at 0% -- as compared to conventional bond financing – the District was able to save over $2,000,000 in interest expense.

“Baird is pleased to have helped the Loveland City School District complete this bond issue,” said David Conley, Managing Director and lead banker on the deal. “The District wanted to pursue this worthwhile energy project, and the bonds available under the stimulus plan allow them to pay for the upgrades at a lower cost to taxpayers.”

Added Loveland Treasurer and CFO Brett Griffith, “Baird found the perfect fit for funding the job we needed done. By being able to do this project now and securing interest-free financing, we can save a substantial amount of money in not only interest, but also long-term energy savings.”

According to Griffith, the projects being funded are all driven by long-term energy and natural resource conservation, and all of the projects have been analyzed and approved by the Ohio Schools Facilities Commission.

Under the American Recovery and Reinvestment Act of 2009, school districts are eligible to issue QSCBs, through 2010, for new construction, repair of existing facilities, or purchase of new land or equipment. When issuing QSCBs the lender receives a “tax credit” to offset Federal taxes, effectively providing a 0% interest loan.

About Baird’s Public Finance Group
Baird is a major underwriter and financial advisor to municipalities, schools, government agencies and corporations. During the past five years, Baird has served as senior manager, co-manager or financial advisor for debt issues totaling $79 billion. Ipreo MuniAnalytics ranks Baird as the number one national managing underwriter for small issues and the number one national managing underwriter for competitive issues of $100 million or less. Baird was honored as advisor of the “Midwest Regional Deal of the Year” by The Bond Buyer in 2007.

About Baird
Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 2,400 associates serving the needs of individual, corporate, institutional and municipal clients. Baird oversees and manages client assets of more than $66 billion. Committed to being a great place to work, Baird ranked number 14 on the FORTUNE’s “100 Best Companies to Work For” in 2009 -- its sixth consecutive year on the list. Baird’s principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s private equity operations. For more information, please visit Baird’s Web site at www.rwbaird.com.