Baird Completes $23M Bond Issue for Sun Prairie Area School District

First School District in Wisconsin to Issue Qualified School Construction Bonds

Baird, an employee-owned, international wealth management, capital markets, private equity and asset management firm, today announced that it has completed a $22.9 million bond issue for Sun Prairie Area School District in Sun Prairie, Wis. Sun Prairie is the first school district in Wisconsin to issue Qualified School Construction Bonds (QSCBs) created under the American Recovery and Reinvestment Act of 2009, which carry a lower than normal interest rate. The District is also the first nationally to seek competitive bids through a public sale for the type of bond offering.

The capital raised by the bond issue will be used to fund construction projects related to the District’s three year referendum building program. Upon completion of construction in 2010, the district will have a new high school campus serving grades 10-12, and the existing high school will be renovated to serve grades 8-9.

By issuing the QSCBs and accessing financing at a low rate of 1.10% for 15 years, the District will save over $11 million in future interest expense versus recent estimates for “traditional” tax-exempt school bond financing.

“Baird is pleased to have helped Sun Prairie Area School District complete this bond issue,” said Brian C. Brewer, Director in Baird’s Public Finance group, and lead advisor on the financing. “The District wanted to evaluate all financing sources for the project, and the bonds available under the stimulus plan allow them to pay for the projects at a significant future cost savings for taxpayers.”

Phil Frei, Deputy District Administrator of Business and Operations added, “The School Board of Sun Prairie is very pleased that the taxpayers of the District will pay $11 million less in taxes than originally discussed at the time of the referendum. Since Sun Prairie was the first district in the state to secure these bonds, Baird and the legal professionals at Quarles & Brady and Godfrey and Kahn had to act in a very fast manner, and I appreciate that.”

Under the American Recovery and Reinvestment Act of 2009, school districts are eligible to issue QSCBs through 2010 for new construction, rehabilitation or repair of public school facilities, purchase of related equipment or new land for future construction. When issuing QSCBs the lender receives a “tax credit” to offset Federal taxes, effectively providing a much lower than normal 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 for the first half of 2009. 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.