Transaction Details

Belpre City School District

Municipal

Lead Bookrunner

Customized Bond Strategy Supports New School Construction and Future Growth  

Baird’s Ohio School team served as sole managing underwriter for the Belpre City School District’s (the “District) $15,000,000 School Facilities Bonds, Series 2025A (General Obligation – Unlimited Tax) (“Series 2025A”) and $30,705,000 School Facilities Bonds, Series 2025B (General Obligation – Unlimited Tax) (“Series 2025B”) (collectively, the “Bonds”). The District, located in Washington County, Ohio, operates a K-12 system serving approximately 900 students across three schools.

Bond proceeds will finance the construction of a new combined middle and high school building, scheduled for completion in summer 2028. Upon completion, the existing elementary school will serve grades K–6 with a capacity of 450 students, the new middle school will serve grades 7–8 with capacity for 100 students, and the high school will serve grades 9–12 with capacity for 240 students. The current high school building will be demolished.

Series 2025A was issued with State Credit Enhancement and Series 2025B was insured by Build America Mutual (BAM); both series carried final maturities in 2062 and underlying ratings of A2. Baird released both series concurrently, achieving an 8-basis point spread between the State Enhanced and BAM-insured series. The Series 2025A bonds were 1–2x subscribed, excluding the 2062 maturity, while several Series 2025B maturities were 3–5x subscribed. Based on investor demand, Baird repriced several maturities 3–4 basis points lower, though investor feedback indicated limited interest in longer maturities with short call features.

To navigate call structure concerns and stay within the District’s voter approved parameters, Baird restructured certain maturities, extending call dates and adjusting coupons on the longer end of the deal. A key investor committed to purchasing the remaining balances contingent on revised terms, leading to a bifurcated structure for the 2062 term maturity with 6% and 5% coupons. Final allocation weighted 55% to 6% coupons and 45% to 5% coupons, producing an average yield 5-basis points below original pricing and preserving the District’s financing plan.