Indian Lake Local School District

Background & Opportunity

Indian Lake Local School District is located in west-central Ohio, approximately 65 miles northwest of Columbus and 55 miles north of Dayton. The District serves communities across Logan and Auglaize Counties.

In 2026, the District sought to refinance a portion of its outstanding Series 2017 bonds to reduce interest costs. On September 3, 2026, Baird served as sole managing underwriter for the District’s $6,655,000 Refunding Bonds, Series 2026 (Aa1 Enhanced / Aa3 Underlying).

Implementation

The financing refunded approximately $6.875 million of the District’s outstanding Series 2017 bonds maturing from 2027 through 2034. The new bonds featured maturities from 2026 through 2034 with 5.00% coupons. The bonds also benefited from the Ohio School District Credit Enhancement Program, which supported the Aa1 enhanced rating and strengthened their marketability.

With interest rates continuing to rise, Baird moved up the pricing to help the District achieve its 3.00% net present value savings target. Despite a relatively modest deal size, investor demand was solid across most of the financing. The 2026 through 2028 maturities were fully subscribed at initial pricing levels, with demand strengthening in the 2031 through 2033 maturities, which were approximately 2.1x to 3.3x subscribed. This allowed Baird to lower yields by one to two basis points, including a two-basis-point reduction in the 2032 maturity.

Results & Impact

The financing exceeded the District’s savings target, generating 3.07% in net present value savings. Over the remaining life of the bonds, the District is expected to realize approximately $244,000 in total debt service savings, reducing interest costs through 2034.