Transaction Details

Chualar Union School District

Municipal

Lead Bookrunner

Baird’s California K-12 Public Finance group served as sole managing underwriter on the $2,900,000 General Obligation Bonds, Election of 2024, Series A (Bank Qualified) (the “Bonds”) for Chualar Union School District (the “District”). The District was established in 1908 and is located in Salinas Valley in Monterey County, California. Serving only 234 students, the District is able to give more attention to each student, providing a nurturing, enriched educational environment. The proceeds of the sale of the bonds will be used to finance the construction of and improvements to facilities of the District, approved by district voter during the November 2024 election. This will be the first of likely two issuances of the $5,600,000 authorization.

The Bonds were amortized over approximately 30 years and were sold with an “A” underlying rating from Standard & Poor’s and an “AA” bond insured rating from Build America Mutual (“BAM”). Following the order period, Baird’s underwriting desk adjusted yields lower 4 basis points in the 2050 term and 5 basis points in the 2054 term to provide a lower cost of borrowing to the District taxpayers. When compared to a similar bank qualified transaction priced by a competing firm the same day with a one notch higher rating of A+ and AA insured, the Bonds were anywhere from one to seven basis points lower in yield across the amortization.